6 May, 2014

China sees huge market for senior-services providers, including travel

By He Dan

Beijing, China Daily. 2014-05-05 – China’s aging population has created a huge market for senior-services providers from both home and abroad. Civil Affairs Minister Li Liguo made the remarks at the opening ceremony of the third China International Senior Services Expo, which kicked off in Beijing on May 4.

Minister notes growing market for senior-services providers

The market value of nursing care for seniors who are disabled or cannot live independently will hit 1 trillion yuan ($16 billion) by the end of 2020, Li said. The senior-services industry will be able to provide 8.5 million jobs by then, he added.

“The annual expo has served as a window for learning about the latest development of the domestic and overseas senior-services industry,” he said. “It also provides a platform to exchange ideas, products, technology and information about the industry.”

More than 300 companies, organizations and academic institutions from 20 countries and regions, including the United States, Japan and Finland, are attending the three-day exhibition. Eight panel discussions are planned, focusing on topics that include marketing financial services to seniors, and designing living communities for seniors.

Zheng Gongcheng, a social security professor from Renmin University of China and another speaker at the opening ceremony, said it is vital to strengthen global cooperation and communication as population aging has created challenges for the global community.

China is home to the world’s largest aging population. As of 2013, there were more than 200 million people 60 or older in China, according to the Ministry of Civil Affairs.

The accelerated population aging in China has increased public concern about the sustainability of pension funds. Meanwhile, the changing family structure also requires the government to speed up the building of nursing homes for the elderly and improving community-based senior care services.

The central government aims to build more nursing homes by providing 35 to 40 beds for every 1,000 elderly people. Other goals include the establishment of senior-services amenities in more than 90 percent of urban communities and 60 percent of rural neighborhoods by the end of 2020.

Although the government has increased funding for improving the community-based senior services for the elderly, the efforts have failed to meet the soaring demand from the country’s large elderly population, said Yan Qingchun, vice-president of the China National Committee on Aging.

Currently, only 72.5 percent of urban communities and about 6.5 percent of those in China’s vast rural areas have senior-care amenities, while the latter has a higher aging level due to the migration of working-age workers from villages to cities, he said.

2014-05-02 – A survey conducted by the China Consumers’ Association in October 2013 found that with economic growth, aging people, who tend to save more, have increasingly greater desire for various services – from necessities like medical services to touring, studying and other entertaining activities.

About 45 percent of the 1,928 respondents in the survey said they would like to travel around – more than in previous years. And about 14 percent of them travel frequently.

But it’s not rare to hear of senior tourists complaining about things moving too fast when touring with younger people.

“The services provided based on the seniors’ needs are insufficient,” said Mou Lina, deputy secretary-general of the China Silver Industry Association, a national NGO in the aging industry.

“Many companies failed to realize the true requirements for products and services,” she said, adding that she cannot find soft and comfortable clothes for her aging mother.

That’s not just her complaint. A survey of elderly people by Nielsen, a leading global provider of information, showed that 57 percent of respondents in China thought they couldn’t find the barrier-free facilities in restaurants that are crucial for seniors.

Almost half said they could not find foods in small packages, which are more preferred by seniors.

On the contrary, if companies seize the details for serving the elderly, they can get quick growth, just like Happy Maturity, Mou said.

She gave the example of the explosive development of Pinetree Senior Healthy Living, a company that provides professional healthcare for seniors at their homes.

“They managed to expand their customers from 10,000 to 150,000 in three years,” she said. “The success should be attributed to the boom in the aging population.”

As the major service that the senior residents need, healthcare services lag behind demand. In 2012, every 1,000 aging people have only 21.5 beds in social care institutions including the public pension houses, the committee said.

“Governments have to issue more policies to encourage more companies to take part in the healthcare industry and also temper the development of disorder,” she said.

Du Peng, a professor at the Institute of Gerontology at Renmin University of China in Beijing, agreed, saying that many real estate projects that identified themselves as being for the elderly popped up, while few of them were actually equipped with sufficient facilities for seniors.

Moreover, he said, it’s hard to get information about pension houses out to seniors and their families.

“Unified online platforms containing the information on facilities and more companies that can provide services are urgently needed,” he said.

“We provide the good news and hold regular interactions with them; thus the continuing success of the newspaper is assured,” he said.

Tu Xin, 78, one of Happy Maturity’s loyal readers, said he anticipates the coming of Mondays and Thursdays, when each new issue arrives.

“Some old news and stories can be found, which triggers my memories for the old time,” said Tu, who lives in Changsha, adding that his own love story was published, and that issue is a special treasure for him and his wife.

Wu Yongjun, a 37-year-old reporter in Jiangxi province, also reads the paper and said its health-oriented content fits the needs of seniors. Its considerate editing is also well-received, Wu said.

Public applause for the newspaper has been welcome, not only for what it provides in the way of food for thought but also for its tailored services.

The newspaper’s expansion plans include the launch of a website and magazine, an online shop to provide selected products and a travel agency catering exclusively to seniors.

Many products aimed at seniors have been successful, Tu said, citing a nail clipper with a magnifying glass as an example.

“It’s small and cheap, but for the seniors who usually have poor eyesight it’s quite necessary,” Tu said, adding that it has been a hot item at the online shop.

Sales at the online shop, which was launched in April 2013, have exceed 2 million yuan, said Yi Hua, who oversees its management.

Happy Maturity plans to expand its current industrial cluster containing the newspaper and other services to a listed company with revenue of 1 billion yuan within five years.

The plan may be achievable in light of China’s aging demographics.

By the end of 2012, the older population – aged 60 and over – reached 194 million, accounting for 14.3 percent of the 1.34 billion total in China. The group will continue to grow, exceeding 200 million – or 14.8 percent of the population – in 2013, according to projections released by the China National Committee on Aging, the official authority in charge of aging issues in China.

Market demand from senior residents reached 1 trillion yuan in 2010, a figure that will grow to 5 trillion yuan in 2050. However, the products and services provided to seniors account for less than 100 billion yuan currently, far from enough to satisfying the coming demand, the committee said.

A survey conducted by the China Consumers’ Association in October 2013 found that with economic growth, aging people, who tend to save more, have increasingly greater desire for various services – from necessities like medical services to touring, studying and other entertaining activities.

About 45 percent of the 1,928 respondents in the survey said they would like to travel around – more than in previous years. And about 14 percent of them travel frequently.

But it’s not rare to hear of senior tourists complaining about things moving too fast when touring with younger people.

“The services provided based on the seniors’ needs are insufficient,” said Mou Lina, deputy secretary-general of the China Silver Industry Association, a national NGO in the aging industry.

“Many companies failed to realize the true requirements for products and services,” she said, adding that she cannot find soft and comfortable clothes for her aging mother.

That’s not just her complaint. A survey of elderly people by Nielsen, a leading global provider of information, showed that 57 percent of respondents in China thought they couldn’t find the barrier-free facilities in restaurants that are crucial for seniors.

Almost half said they could not find foods in small packages, which are more preferred by seniors.

On the contrary, if companies seize the details for serving the elderly, they can get quick growth, just like Happy Maturity, Mou said.

She gave the example of the explosive development of Pinetree Senior Healthy Living, a company that provides professional healthcare for seniors at their homes.

“They managed to expand their customers from 10,000 to 150,000 in three years,” she said. “The success should be attributed to the boom in the aging population.”

As the major service that the senior residents need, healthcare services lag behind demand. In 2012, every 1,000 aging people have only 21.5 beds in social care institutions including the public pension houses, the committee said.

“Governments have to issue more policies to encourage more companies to take part in the healthcare industry and also temper the development of disorder,” she said.

Du Peng, a professor at the Institute of Gerontology at Renmin University of China in Beijing, agreed, saying that many real estate projects that identified themselves as being for the elderly popped up, while few of them were actually equipped with sufficient facilities for seniors.

Moreover, he said, it’s hard to get information about pension houses out to seniors and their families.

“Unified online platforms containing the information on facilities and more companies that can provide services are urgently needed,” he said.