turn the retiree into a millionaire industry
In Japan there is a curious business tradition: some companies they continue hiring retirees so that they continue working after officially retiring. They do so because labor shortages and an aging population have turned the elderly into a resource increasingly valuable for the economy. Now it is China’s turn. Beijing no longer expects a baby boom. For years, Beijing tried stop the collapse birth rate through incentives, regulatory changes and campaigns aimed at encouraging families to have more children. However, the demographic reality has imposed with force. Births continue to fall and forecasts point to an increasingly aging China. Given this scenario, he had the financial times that the country is changing its approach: instead of focusing all its efforts on increasing the number of young people, it is building an economic strategy around an increasingly evident certainty, that hundreds of millions of citizens They will be over 65 years old in the coming decades. The silver economy. Yes, because the answer is named “silver economy”a concept that seeks to convert the needs, consumption and services aimed at older people into one of the great engines of the Chinese economy. The Government estimates that this market could reach 30 billion yuan by 2035, a gigantic figure driven by an elderly population that will exceed 400 million people and will represent more than 30% of the national total. At a time when the real estate crisis has weakened one of the main pillars of Chinese growth, the authorities see in retirees a new source of economic activity capable of mobilizing investments, companies and employment. A fair that shows the future of the country. The best demonstration of this transformation could be seen at a big fair held in Shanghai dedicated to elderly care, rehabilitation and health. More than 600 companies came to exhibit products specifically designed for an aging society. The event offered a very different image from China just a decade ago: exoskeletons for walking, robotic assistance systems, rehabilitation devices, smart beds, adapted furniture, specialized health products and technological solutions aimed at improving the quality of life of elderly people. Technology turns to the elderly. Many of the innovations presented had a common element: automation. Companies from very diverse sectors are trying to apply advanced technology to reduce the physical and economic burden associated with aging. Among the products displayed there was everything from connected diapers to mobile applications, to sensors installed in shoes capable of analyzing the way you walk and detect risks of falls or vibration therapy systems inspired by space technologies, also devices intended to facilitate the care of dependent people. Basically, the idea is to use technology to replace heavy tasksrepetitive or difficult to cover by human personnel, a challenge that will become increasingly important as the elderly population increases. Companies that change objectives. One of the most revealing aspects is how many companies are redirecting your businesses. Products originally designed for children are being adapted for adults. For example, companies specializing in infant milk have begun to develop nutritional formulas for the elderly. Educational technology manufacturers that previously sold tools for schoolchildren now market devices aimed at teaching calligraphy, music or new skills for retirees. The business logic is simple: while the children’s market contracts due to the drop in births, the older segment grows year after year and offers much more attractive prospects. A new generation of retirees. The change also reflects a social transformation. Today’s Chinese seniors have more income, more free time and different expectations than previous generations. They are no longer limited to covering basic needs, but demand leisure, training, cultural activities, physical well-being and personal experiences. Senior universities, music courses, sports activities and learning programs are gaining popularity among a population that wants to stay active for longer. For many companies, this group is no longer seen as a dependent group and is becoming in a consumer with own spending capacity. Turn a problem into an opportunity. It’s the end, obviously. The silver economy represents an attempt to transform one of China’s biggest structural threats into an economic opportunity. An aging population will continue to pose enormous challenges for pensions, healthcare and the labor market, but Beijing is trying extract economic value of a trend that he already considers irreversible. Instead of waiting for a recovery in birth rates to solve the problem, the country is reorganizing entire sectors to serve an increasingly aging population. In a way, China has assumed that it will have fewer children than it dreamed of and is betting on something different: turning its retirees into the center of a multi-billion dollar industry capable of sustaining part of its future growth. Image | Pixabay, timquijano, World Bank Photo Collection In Xataka | In the midst of a race towards immortality, China believes it has found a way for us to live 150 years: with grapes In Xataka | China knows that its population is going to collapse but it already has a long-term plan to solve it. Of course, thanks to AI