Aligning the silver economy opportunity to meet a mega futuristic potential

The National Commission of Population projects that the share of the elderly population in India stood at approximately 9% in 2011 and is projected to grow to 18% by 2036. Population ageing world over is going to be one of the significant social transformations of the 21st century. As the world population ages, the so-called "silver economy" is becoming an increasingly important market. The ageing population presents a range of opportunities for companies, but there is a need for businesses to align their strategies with the futuristic potential of this market.

The India Outlook:

In India, the proportion of the elderly population is expected to double by 2050, with a potential market of USD 2 trillion. Globally, the silver economy arguably reached USD 15 trillion in 2020 and continues on a growth trajectory with the elderly population in OECD (Organization for Economic Cooperation and Development) countries expected to reach 227 million by 2050.

Despite the potential of this market, there is a concern that companies are not fully prepared to tap into it. In a survey of companies conducted by Newton Consulting India, only 20% of companies had a specific strategy for the elderly market. This is a worrying sign, given the size and potential of this market.

To align opportunities with the futuristic potential of the silver economy, companies need to take a more strategic approach. This includes understanding the needs and preferences of older consumers and developing products and services that meet those needs.

Sectors to Focus:

There are many sectors that have a keen interest in the elderly population namely, healthcare, travel & hospitality, technology, home security etc.

Healthcare - One key area of opportunity is in the healthcare sector. With the aging population comes an increase in the incidence of chronic diseases such as diabetes, cardiovascular disease, and cancer. Companies that can develop innovative solutions to address these diseases will be well-positioned to tap into the potential of the silver economy. Lately, we have seen a considerable rise in startups addressing the needs of this audience.

Technology - Another area of opportunity is in the technology sector. Older people are increasingly using technology, and companies that can develop products and services that cater to their needs will be prepped to tap into this market. This includes products such as smartphones, tablets, and wearable devices that are designed with older users in mind.

Greater inclusion in workplace:

To align with the futuristic potential of the silver economy, companies also need to develop a more holistic approach to their strategies. This includes addressing the needs of older workers and ensuring that they are able to continue working and contributing to the economy. It also means addressing issues such as ageism and discrimination and promoting greater inclusion and diversity in the workplace.

There are some companies that are already leading the way in this area. One example is Nestle India, which has developed products aimed specifically at the elderly market, including easy-to-digest foods and nutrition supplements. The company has also launched a program to train caregivers in the needs of older people, to better understand how to serve this market.

Another example is Tata Motors, which has developed a range of cars that are designed with older users in mind. These cars include features such as easy-to-use controls, large fonts, and comfortable seating, making them more accessible for older drivers. It is heartening to see that brands like M&S have regularly used older models in their lingerie marketing campaigns.

Conclusion:

The silver economy is a lucrative target audience and presents a range of opportunities for companies, but it is important for businesses to align their strategies with the futuristic potential of this market. Since this is a mature audience, keeping the communication and user experience simple and straightforward will go a long way. 

Tactical campaigns specifically designed for them can induce engagement and purchase but marketers must remember to communicate clearly the value their products or services will bring to the table for them. The number of elderly in India is projected to reach 158.7 million in 2024 as per the United Nations Department of Economic and Social Affairs and this is a set of audience marketers should not dismiss.

Author: Smita Khanna, Chief Operating Officer at Newton Consulting India