Industry winners in ageing populations will not be limited to the stereotypical ageing businesses.
Deloitte’s Voice of Asia report states;
“Ageing populations will generate a “growth cluster” of vibrant businesses at the heart of the collision of megatrends such as rising life expectancies, increasing relative health care costs, and tightening public sector health budgets”.
Sadly, Deloitte’s fall into the common trap of failing to acknowledge the opportunity gap that lies between the ‘Millennials’ and ‘old people’.
In the country-by-country assessment of business opportunities presented by the ageing society, the Deloitte report focusses on the business stereotypes (elderly-care, health care, asset management services) and seem to overlook the enormous spending power of the 50+ army across the markets of Asia Pacific.
Almost any industry that cares to adapt their products and services to meet the changing needs and wants of an ageing consumer stands to reap big rewards.
While the business world remains intoxicated by the ‘Millennial opportunity’ we know the situations varies widely between developed and developing markets.
“In emerging markets expect to be both financially (71 percent) and emotionally (62 percent) better off than their parents, whereas in the developed world only 36 percent of Millennials predict they will be financially better off than their parents, and a bare 31 percent say that they’ll be happier”.
But keep in mind that according a study by Cap Gemini/Merrill Lynch, 54% of the High Net Worth Individuals (HNWI’s) in Asia Pacific are 56 years and above. Furthermore according to McKinsey, the 60+ consumer will account for 51% of urban consumption growth in developed countries through to 2030.
A timely reminder that the 50+ consumer still needs to eat, learn, be entertained, keep in touch and look good, despite their advancing years.