Why Can Luxury Brands No Longer Ignore Elderly Consumers?

Nowadays, many brands are focused on the millennial generation.

"Chinese people over the age of 60 are no longer looking for traditional products and public buying methods," Li, a 67 year old retired worker from Shanghai, told Jing Daily Jing Tian media. "We like to reward ourselves, like to try new and modern products."

According to a study by the Sino British Business Council, the elderly in China are eager to spend. 40% of the retirees are willing and able to afford a luxury holiday. People over the age of 60 reserve an average annual income of 15% for travel.

In 2013, 2 million 500 thousand Chinese earn more than 130000 yuan (about 890 thousand yuan) annually, and 51% of them are 40-49 years old. This group represents a strong consumption power.

"Older people pay more attention to service quality, shopping experience and convenience of shopping centers," said Thibaud Andre, research manager of Daxue Consulting Group in Shanghai.

"Offline activities are usually the best way for Chinese elderly people to understand brands."

"However," he added, "nearly half of the elderly in China are using WeChat."

In fact, the elderly population in China is the most frequently used group of WeChat. More than 60 year old people spend 80% of their mobile phone traffic on WeChat. Compared to 18 to 35 years old, only 6.8% can consume the same traffic on WeChat.

So, with

Are they crazy about the millennials? Do they miss the huge business opportunities of the elderly?

It seems that we have only just begun to understand China's consumption power in the past 60 years.

In an interview last week, L'OREAL China CEO St e phane Rinderknech said, "our customers have" silver generation "- the elderly, representing hundreds of millions of potential consumers.

However, L'OREAL brand's successful marketing activities, including luxury companies Giorgio Armani, Lancome, Stella McCartney and Yves St. Laurent Beaute, are still slow to respond to the crowd.

L'OREAL did not respond to requests for comment.

According to Daxue analysts, the size of related industries in China is now close to 450 billion US dollars, and the figure is expected to double by 2021.

At present, China has an estimated population of 241 million and over 60 years old, accounting for 17.3% of the total population.

According to the Xinhua News Agency report on China's national aging Bureau, by 2050, analysts predict that this figure will reach 487 million or 34.9% of the national population.

This is 1/4 of the world's total population over the age of 60.

However, according to a report by international research firm Mintel last year, only 8% of Chinese elderly consumers believed that marketers positioned their tastes according to their products.

The study surveyed 600 Chinese elderly people in 10 cities and 3000 people on the line. They concluded that there was a serious disconnection between the "silver generation" and the attempt to target their brands.

It seems that analysts can not even explain what can be done to achieve "silver generation" marketing activities.

Many marketing companies are surprised to be asked about the old age market, and older consumers feel that they are being ignored.

"They think we do not exist," said David Chan, a retired sales manager from Beijing.

The Alibaba launched an old version of Taobao earlier this year, designed to make it easier for people over the age of 60 to pay their products online, establish their family account and choose their identity by their children, and invite parents who may not be able to operate independently of APP to bind accounts.

"We hope Taobao will become a bridge to help them strengthen their relationship with the younger generation and make them more closely connected," said Ding Jian, head of the channel development, to Alizila.

According to Alibaba, two senior senior officials have started to work in Taobao.

According to Daxue analysts, Taobao's online function for the elderly may become a profitable way to sell to China's more than 60 year old population.

"Elderly people depend on their families and their social consumption needs are stronger," he added.

"Family and friends' suggestions have a significant impact on their purchase decisions."

By contrast, luxury brands are still trying to understand China's growing older generation.

"They think what we want is to sit at home and read the newspaper," she said.

And hairstyles, and so on, we are willing to spend.

"