Low-cost travel, e-commerce, livestreaming by older influencers and the highly alcoholic drink sorghum wine are some of this generation’s top purchases, according to a white paper from Shanghai-based China Insight Consultancy and Chinese online education service Quantaxin Group.
“Due to rapid socio-economic development, longer life expectancy and declining birth rate, China is gradually transitioning into an ‘ageing society’,” said the paper, published on Tuesday, presenting an analysis of the findings of a survey of 5,710 people aged 45 and above.
“Currently, services and products [for the middle aged and their seniors] It is not yet fully mature and offers huge market potential for investment and growth.”
“I believe an effective response will not only improve our response to ageing but also foster new drivers of growth,” Li said at the event, hosted by the World Economic Forum and also known as “Summer Davos.”
A Quantasing spokesman said the white paper’s authors took as their starting point the finding that people are no older than 45 when it comes to taking part in “economic activities related to elderly care preparation”.
But middle-aged people still face the dilemma of whether to spend money now or save for retirement.
According to the World Health Organization, 254 million people in China were aged 60 or older in 2019, and it is estimated that 402 million people, or 28% of the population, will be in this age group by 2040. Around 44% of the population is already over 45, according to data from market research firm Statista.
When it comes to travel, 60 percent of Chinese people over the age of 45 travel more than three times a year, but are held back by “high costs” and a lack of “decent options,” the paper said, adding that this age group prefers trips that expose them to the humanities, history and traditional culture.
“Educational trips that combine culture and entertainment suit their needs,” the researchers said.
When it comes to e-commerce, 34.7% of those aged 45 and over cited online platforms as their usual shopping channel, compared with just 11.3% of those aged 75 and over, the paper said.
The researchers say that online personalities that cater to a growing segment of the population “provide psychological comfort that fulfills a basic emotional need. As more seniors use and become familiar with content e-commerce platforms, their overall adoption will increase, providing impetus for the development of these platforms.”
Similarities aside, consumers aged 45 to 60 still spend differently than older consumers, paying more attention to brands of everyday items compared to their older peers, a Quantasin spokesman said.