A new study by Euromonitor concludes that marketers should consider targeting older shoppers in countries like India and China.
Brazil, Russia, India and China will deliver more than 60% of growth among all emerging markets between 2010 and 2020, with the India and China generating over a quarter of the overall increase.
As reported in an article on WARC, Euromonitor comments that while younger audiences in these areas are rightly seen to offer “tremendous opportunities” for brands, taking a broader focus could pay substantial dividends in the long term but with the growing number of elderly in EMEs, consumer goods companies can benefit from this demographic change by focusing on products and services for older consumers. This is just the tip of the iceburg. As Silver has oft chanted, the biggest opportunity is adaptingexisting products and services to remain relevant to customers as they experience the inevitable effects of physiological ageing.
By 2020, there will be 415 million people over the age of 65 years old living in emerging markets, up from just 299 million in 2010.
More specifically, there are currently 130 million consumers of retirement age in China and 58 million in India, meaning these nations have the greatest density of potential elderly customers in the world.
The median age in China is currently 38.8 years old, a figure that will climb to 42 in the next decade. As such, by 2030, the world’s most populous nation will house 222 million residents over the age of 65 years old, with this segment accounting for 15.9% of the domestic population.
These trends are broadly similar in Eastern Europe, where the average age will rise from 38.6 years old to 41.3 in the same period. Moreover, Eastern Europe has the highest overall ratio of people of at least 65 years old to 15-64 year olds, at 20.8%.
This compares with figures of 16.4% in Argentina, 13.5% in Chile, 13.1% in China, 7.6% in India, 4.5% in Saudi Arabia and just 1.3% in the United Arab Emirates.
By 2020, Hungary will have the highest old-age dependency rate of any emerging market at 30.1%, with totals in Poland, Romania, Russia and Ukraine climbing over 20%.