Rise Of The Silver Shoppers

When the actor Wang DeShun went for a walk, it went viral. It wasn’t just any walk, it was a jaunt down the catwalk at China’s Fashion Week. And Wang is 80 years old. So the successful exposition of an octogenarian as a model turned China’s fashion world upside down. It looks like China is not just coming to terms with an aging population, it is embracing the fact.

Probably the fastest growing demographic in China is the “silver” generation, those 65 and older. Increases in longevity and over forty years of strong economic growth means this generation is the largest and the wealthiest it has ever been—a fact merchants and retailers should note.

On a slightly broader measure, China’s 2020 census puts the country’s population of 60+ at over 260 million, almost 19% of the population. This also represented a 5% jump from the 2010 census. So by 2030, the 60+ could be some 25% of the national population, and an even larger share of purchasing power.

But there are several challenges in winning this audience, one that might stymie many retailers. First, they are not digital natives. Although older Chinese, like seniors in the west, are generally comfortable with technology, they can have a more limited skill set and a more limited appetite for novelty. Second, they are traditionalists. At this point in a person’s life, most purchasing habits are set. They are not looking for the next trendy item, nor are they following celebrities. Their consumption patterns have less flexibility than others. Lastly, for some digital segments, the silvers might outperform. They have a higher appetite for service offerings and meal deliveries.

What to do? What rules should brands observe in pursuing China’s silver market?

Segment the market. Some brands observe a general rule of one message for the entire market, treating the entire nation as a single homogenous entity. Maybe there was a logic to this approach in an era of mass media, but digital media allows the brand to target distinct messages for different groups. It is worth customizing a marketing campaign for a target audience of 260 million.

Speak to consumers in their language. Traditional ad themes of youthful romance or a young couple starting out won’t fit this demographic. For communicating with seniors, think about emphasizing family gatherings. Illustrate the wisdom of old age and the joy of long-standing relationships. 

Shopping is about reassurance. It is not an experiment. Silvers don’t want to see what is new. They want to see what is tried and true. Familiarity and dependability drive decisions.

Mind the digital hurdles. Slivers are capable in the digital space, but not cutting edge. Don’t focus on a new app. Focus on making the most of the widely used apps. Seek a platform that uses voice commands and has large font options. Alibaba launched “Taobao for elders” which allows a senior to use a peer-to-peer chat function so they may discuss a product in real time with a family member. JD has a 5G phone just for seniors. A little consideration helps. 

As with other challenges in China e-commerce, I advocate an ongoing system of testing and adaptation. The bottom line: The size and purchasing power of China’s silvers present a strong case as to why they should be actively courted.