Turning silver into gold: Businesses should embrace our ageing population
Published on
28 Aug 2024
Published by
The Straits Times
Singapore’s seniors bring a lot of spending power to the table but businesses should be alive to their needs.
There was prolonged silence when everyone was studying the menu at the cafe.
Finally, my friend P made a confession: “I cannot see the small words at all. You mean you can?”
That sparked a chorus of similar complaints. I could still decipher the items, but the rest had to whip out their mobile phones to snap pictures of the menu, just to enlarge the tiny words.
My friends are more than a decade from being “aged”. While they may be more comfortable scanning QR codes to find menus or place orders, many seniors like my parents prefer the “human touch” to navigating apps. They are also the ones who would rather tolerate the long queues in banks than managing their funds on the phone.
That is not just because their eyesight is even worse than mine. And even my eyesight failed me on another occasion.
An elderly lady approached me to help read the expiry date of a tube of cream in a minimart. I squinted my eyes and then sheepishly told her: “Sorry, I can’t see either.”
Are our businesses reading this? Why make life so difficult for your customers?
Silver economy: A golden opportunity
Singapore became an aged society in 2017, and is set to attain “super-aged” status in 2026. By 2030, one in four citizens will be aged 65 and above, up from one in six now. With our excellent healthcare system, we may live longer.
As it is, Singapore aspires to become a Blue Zone 3.0. Blue Zones are places with the healthiest, longest living populations, where people may live to 100 and beyond.
At the same time, our resident total fertility rate (TFR) has dropped below 1.
Professor Paulin Straughan, director with Centre for Research on Successful Ageing (Rosa) in Singapore Management University (SMU), said many businesses have not taken stock of Singapore’s demographic changes. They have yet to unlock the potential of the silver economy too.
The post-65 of today and tomorrow are very different from the preceding generations. Many are better-educated, have retirement savings, and will spend on businesses who empathise with them.
Not a sunset but sunrise industry
According to Ageing Asia Alliance, an Asia-Pacific industry alliance on the business of ageing, Singapore was ranked as the country with the biggest silver economy potential in terms of the capacity of the ageing population to spend, or be supported by their children. In the Asia-Pacific region, the silver economy market is projected to be worth US$4.6 trillion ($6 trillion) by 2025, catering to 600 million seniors above 60. The silver sector is slated to be a US$72.4 billion market in Singapore by 2025.
Enterprise Singapore shared some market opportunities for local firms to tap the silver dollar: telemedicine, health tech, elderly nutrition and assisted living. It has various schemes and programmes that can support budding silver economy entrepreneurs. This includes support for commercialisation of new solutions through its centres of innovation in institutes of higher learning.
The stereotypical needs of the greying cohort are wheelchairs and walking sticks. However, the post-65 cohort is not homogeneous. While some do have disabilities, many aged between 65 and late 70s are still active, avid and even affluent consumers. Businesses that turn a blind eye to this group are losing 10 good years of their spending prowess.
“It is not a sunset but a sunrise industry,” Prof Straughan said. “They are mature, know what they want and can be loyal customers for years.”
Catering to the post-65 is not just a localised business, she added. Singapore can be a tourist hub for older tourists too. After all, it is a safe country with an excellent healthcare system.
If the silver-haired locals and tourists are not served well here, they may head to Malaysia or Thailand in droves instead.
Wanted: More senior-friendly businesses
We need more senior-friendly businesses for silver spenders.
Just like FairPrice Group (FPG), which has senior-focused discount schemes for Pioneer Generation (PG) cardholders, Merdeka Generation (MG) cardholders, and senior shoppers above the age of 60.
Several FairPrice supermarket outlets with higher senior footfall, such as in Bukit Merah Central and Tampines Hub, are designed with accessibility features like call buttons and magnifying glasses along aisles, larger lane signage, wheelchair-friendly shopping carts, and rest areas. Some stores also feature active ageing corners showcasing senior-specific products that support healthy living. These include health supplements, hygiene products, and mobility aids.
Chan Brothers Travel offers discounts for travellers aged 60 and above. It designs travel packages specifically tailored to the interests and needs of elderly travellers, including slower-paced itineraries, shorter commutes and accessible amenities. There are also tours with wellness activities such as talks and exercises conducted by doctors and traditional Chinese medicine (TCM) practitioners, or healthy meals curated by nutritionists.
For those with mobility issues who find it challenging to step up and down from a coach, there will be a stepping board provided on some tours. Ground-level rooms are arranged for them to avoid the stairs, said its senior marketing communications manager Jeremiah Wong.
Professor Yow Wei Quin, head of humanities, arts and social sciences at Singapore University of Technology and Design (SUTD), said more are catering to the silver market.
For example, Digital Gastronomy, an SUTD start-up specialising in 3D-printed food technology, provides feeding solutions to seniors with swallowing difficulties by 3D-printing pureed meals that are safe, healthy and visually appealing. It is developing a food printer that can be integrated into the kitchens of hospitals and nursing homes to produce soft meals at a faster speed compared to commercial food printers that are currently available.
However, there is still a considerable gap in fully addressing the elderly’s diverse needs.
Japan has made much progress in this area, including designing products specifically for seniors. Think swivel car seats for easier entry and exit, and dual-purpose accessories like toilet roll holders that double as grab bars.
Japanese supermarkets are using larger print on price tags, labels and signage, wider aisles as well as slower escalator speeds, to make shopping easier for older customers.
Retail chain Aeon has several outlets that open at 7am to cater to seniors who are early risers. They offer health check-ups, morning exercise spaces and speciality stores selling products needed by older people. Employees are trained to serve elderly customers who may suffer from dementia.
Prof Straughan suggested buffets at senior citizen prices even as children enjoy discounted rates. Some seniors will also consider higher-end residential living on short term leases, with close proximity to amenities, services like cleaning and food delivery, and facilities like gyms with elderly-friendly equipment and activities.
Dignified and independent ageing
Singapore is a super-efficient and fast-paced country where the young and ambitious thrive and excel. It can also be an inclusive place where seniors age with dignity, remain active, and stay connected with their communities. Businesses and service providers play a part in making Singapore senior-friendly.
For a start, we should stop perpetuating ageism or stereotyping all seniors as being financially and socially dependent on the younger generation. See the silver lining of our ageing society and start preparing for it. And when my time comes to be part of the silver brigade, I hope I do not have to struggle with reading the fine words in menus or product labels anymore.
Source: The Straits Times © SPH Media Limited. Reproduced with permission.
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