Page 336 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
particular should consider leveraging whatever that retirees living in major cities, with money to
product-quality and product-design advantages spend and plenty of time, were some of the most
they may have while, importantly, also working to prolific shoppers since the pandemic, with over
lower their overall costs to levels appropriate for half of the goods catering to the elderly bought
the Chinese market. According to the survey, half of by users themselves in 2021. In the first three
the respondents intend to spend more than 3,000 quarters of 2021, purchases by the silver-haired
RMB (approximately $470) of 2021’s Singles’ Day. demographic grew almost fivefold year on year,
The survey, which polled 2,000 Chinese consumers, with users focusing on leisure purchases, such as
found that 85% intend to spend the same or more gardening supplies and package tours. More than
this 2021 Singles’ Day compared to 2020. Among 264 million people, or 18.7% of China’s population,
those who plan to purchase skin care products the are aged over 60 in a country that is ageing rapidly,
most overall this 2021 Singles’ Day, 42% said they according to census results published in May 2021.
plan to buy fewer US brands. Likewise, among those That demographic is expected to expand by more
who plan to purchase electronics the most overall, than 10 million annually between 2021 and 2025
31% plan to buy fewer US brands. And among those by some estimates, growing the potential pool for
who plan to purchase luxury goods the most overall, goods and services for the elderly. There are signs
31% as well plan to buy fewer US brands. Overall, the that the shift is already occurring. The state-run
survey found that the US ranks third, behind Japan China Internet Network Information Centre said
and South Korea, as the preferred source country over-60s accounted for the bulk of China’s internet
for foreign brands, as 37% chose the U.S. as a top- user growth in 2020, with more than 123.3 million
three preference. Meanwhile, 50% chose Japan and older users active online as of June. In March,
41% chose South Korea—while 26% chose France, 2020, about 6.7%, or so around 60.6 million, of the
23% chose Germany, 15% chose Italy, 12% chose the country’s 904 million internet users were aged 60
United Kingdom and 6% chose Canada. However, or above. The Hong Kong Trade and Development
in what might be an encouragement for foreign Council said older shoppers on the mainland were
brands, when asked to choose their top-three more socially connected and had begun to shift
reasons for purchasing foreign brands, 62% picked from offline to online experiences, particularly
“better product quality/better product design,” well since the pandemic. To tap this market, online
ahead of the second place “specific item cannot be vendors needed to simplify their designs or offer
found locally,” which was chosen by 35% (HAPPI). user-friendly guides for their apps or websites,
experts say. It is a point being driven home by
Elderly Chinese Consumers Turning the central government. The 2021-25 five-year
to Online Shopping plan lists development of the “silver economy” as
a goal and mainland policymakers have begun
There is a growing trend in China among “silver- to implement measures to ensure websites and
haired” retirees using various online shopping apps are more accessible to older users. In April
to procure items instead of using traditional 2021, the Ministry of Industry and Information
methods. Some retirees cite the online stores Technology published guidelines asking for “elderly
providing goods of better quality than local friendliness modifications” to web pages and apps,
stores. Retirees are also sharing links for items including bigger fonts and a ban on certain forms of
with friends on social networking platforms such potentially misleading advertising. There are signs
as WeChat, where they discuss and recommend that some companies are making their products
listings. They cite the excitement at finding new and services more accessible (Wang).
items each day. More of the elderly population are
moving towards online shopping based on safety Beverage Industry: Tea, Sparkling,
concerns, and encouragement form government Coffee and Liquor
policy and e-commerce giants. Prior to this,
younger consumers were responsible for buying As the economy rebounds beverages such as
products for older relatives. Experts are noting milk tea have become popular among avid, social
that this trend is changing. Reports have found media-savvy consumers. Mainland residents
336
particular should consider leveraging whatever that retirees living in major cities, with money to
product-quality and product-design advantages spend and plenty of time, were some of the most
they may have while, importantly, also working to prolific shoppers since the pandemic, with over
lower their overall costs to levels appropriate for half of the goods catering to the elderly bought
the Chinese market. According to the survey, half of by users themselves in 2021. In the first three
the respondents intend to spend more than 3,000 quarters of 2021, purchases by the silver-haired
RMB (approximately $470) of 2021’s Singles’ Day. demographic grew almost fivefold year on year,
The survey, which polled 2,000 Chinese consumers, with users focusing on leisure purchases, such as
found that 85% intend to spend the same or more gardening supplies and package tours. More than
this 2021 Singles’ Day compared to 2020. Among 264 million people, or 18.7% of China’s population,
those who plan to purchase skin care products the are aged over 60 in a country that is ageing rapidly,
most overall this 2021 Singles’ Day, 42% said they according to census results published in May 2021.
plan to buy fewer US brands. Likewise, among those That demographic is expected to expand by more
who plan to purchase electronics the most overall, than 10 million annually between 2021 and 2025
31% plan to buy fewer US brands. And among those by some estimates, growing the potential pool for
who plan to purchase luxury goods the most overall, goods and services for the elderly. There are signs
31% as well plan to buy fewer US brands. Overall, the that the shift is already occurring. The state-run
survey found that the US ranks third, behind Japan China Internet Network Information Centre said
and South Korea, as the preferred source country over-60s accounted for the bulk of China’s internet
for foreign brands, as 37% chose the U.S. as a top- user growth in 2020, with more than 123.3 million
three preference. Meanwhile, 50% chose Japan and older users active online as of June. In March,
41% chose South Korea—while 26% chose France, 2020, about 6.7%, or so around 60.6 million, of the
23% chose Germany, 15% chose Italy, 12% chose the country’s 904 million internet users were aged 60
United Kingdom and 6% chose Canada. However, or above. The Hong Kong Trade and Development
in what might be an encouragement for foreign Council said older shoppers on the mainland were
brands, when asked to choose their top-three more socially connected and had begun to shift
reasons for purchasing foreign brands, 62% picked from offline to online experiences, particularly
“better product quality/better product design,” well since the pandemic. To tap this market, online
ahead of the second place “specific item cannot be vendors needed to simplify their designs or offer
found locally,” which was chosen by 35% (HAPPI). user-friendly guides for their apps or websites,
experts say. It is a point being driven home by
Elderly Chinese Consumers Turning the central government. The 2021-25 five-year
to Online Shopping plan lists development of the “silver economy” as
a goal and mainland policymakers have begun
There is a growing trend in China among “silver- to implement measures to ensure websites and
haired” retirees using various online shopping apps are more accessible to older users. In April
to procure items instead of using traditional 2021, the Ministry of Industry and Information
methods. Some retirees cite the online stores Technology published guidelines asking for “elderly
providing goods of better quality than local friendliness modifications” to web pages and apps,
stores. Retirees are also sharing links for items including bigger fonts and a ban on certain forms of
with friends on social networking platforms such potentially misleading advertising. There are signs
as WeChat, where they discuss and recommend that some companies are making their products
listings. They cite the excitement at finding new and services more accessible (Wang).
items each day. More of the elderly population are
moving towards online shopping based on safety Beverage Industry: Tea, Sparkling,
concerns, and encouragement form government Coffee and Liquor
policy and e-commerce giants. Prior to this,
younger consumers were responsible for buying As the economy rebounds beverages such as
products for older relatives. Experts are noting milk tea have become popular among avid, social
that this trend is changing. Reports have found media-savvy consumers. Mainland residents
336
