The Hong Kong Trade Development Council has released a consumer survey revealing the substantial economic potential of mainland China's aging population, with senior consumers demonstrating strong spending power and a pronounced preference for Hong Kong brands. The survey, titled Chinese Mainland Silver Economy Opportunities, indicates this demographic is willing to pay significant premiums for products and services from Hong Kong, viewing them as more authentic and reliable.
According to the survey findings, the mainland's silver economy is currently valued at about RMB7 trillion, representing approximately 6% of overall GDP. This figure is projected to surge to RMB30 trillion by 2035, highlighting the segment's massive growth potential. Wing Chu, HKTDC Deputy Director of Research who led the study, emphasized this projection indicates huge development potential for businesses targeting this market.
The survey involved more than 2,000 middle-class and affluent senior consumers across various mainland cities, including those in their 50s planning retirement, those entering retirement in their 60s, and the post-retirement population aged 70 and above. Respondents' average monthly expenditure on daily consumer goods and services was approximately RMB7,000, rising to RMB8,000 for those in first-tier cities.
A key finding reveals that mainland senior consumers hold Hong Kong brands in particularly high regard, with 78% of respondents willing to pay a premium for Hong Kong-sourced products and 84% willing to do so for services from the city. Typically, respondents were willing to pay a 16.4% premium on products and 15.4% premium on services, with those in first-tier cities happy to pay even higher percentages.
In the past year, 61% of respondents had purchased Hong Kong products, including health foods (24%), luxury goods (18%), and beauty and personal care products (17%). Regarding services, 54% had utilized Hong Kong services, including beauty and personal care services (25%), travel to Hong Kong, Macao and Taiwan (22%), and financial and wealth management services (20%). Future purchasing interest was strongest for Hong Kong health foods, leisure foods, and beverages, while health and wellness services followed by beauty and personal care services were the most sought-after services.
Bruce Pang, HKTDC Director of Research, noted that the mainland's 15th Five-Year Plan focuses on boosting domestic demand to drive economic growth, creating opportunities for Hong Kong companies. "By gaining a deeper understanding of the consumption patterns of mainland seniors, particularly those in the higher-spending middle-class and affluent segments, Hong Kong businesses will be able to effectively penetrate the domestic market," Pang stated.
HKTDC Economist Eric Chu explained that when choosing products and services, happiness is the priority for mainland seniors, closely followed by value for money. The survey showed 65% of respondents prioritized products or services that would enhance their leisure or bring them happiness, while 63% valued reasonable pricing and good value for money, and 62% focused on practicality and durability.
Despite the popularity of online shopping across the mainland, physical stores remain the primary consumption channel for the elderly demographic, with offline experiences, in-person consultations, and trust remaining prime considerations. This presents specific opportunities for businesses that can enhance the offline retail experience.
To help businesses capitalize on silver economy opportunities, the HKTDC has incorporated related elements into many exhibitions and forums. A thematic seminar on healthy ageing was held as part of the Asia Summit on Global Health, while the Rehabilitation and Elderly Care zone at the Hong Kong International Medical and Healthcare Fair featured the latest gerontechnology products. The Hong Kong Toys & Games Fair introduced a new "Happy Ageing" label for silver market products, and the Asia Toys & Games Forum hosted discussions on toy design for the elderly.
The full survey report is available at https://research.hktdc.com/en/article/MjI2ODIyMDg0Nw, with additional research available through http://research.hktdc.com/en. The HKTDC will continue providing comprehensive support to enable enterprises to explore and develop opportunities in this growing market.
