The Hong Kong Trade Development Council has released a comprehensive survey detailing the substantial opportunities presented by China's rapidly growing silver economy, with mainland senior consumers demonstrating strong spending power and a pronounced preference for Hong Kong brands. The survey, which interviewed over 2,000 middle-class and affluent senior consumers across mainland cities, reveals that this demographic regards Hong Kong products as guaranteed authentic and the city's services as professional and reliable, leading to a willingness to pay what researchers term a "Hong Kong premium."
According to the survey findings, the Chinese mainland's silver economy is currently valued at approximately RMB7 trillion, representing about 6% of overall GDP. This figure is projected to surge to RMB30 trillion by 2035, indicating the segment's enormous development potential. Bruce Pang, HKTDC Director of Research, noted that the 15th Five-Year Plan's focus on boosting domestic demand creates significant opportunities for Hong Kong companies looking to expand into the mainland market.
The survey provides detailed insights into consumer behavior, showing that respondents' average monthly expenditure on daily consumer goods and services was approximately RMB7,000, rising to RMB8,000 for those in first-tier cities. Wing Chu, HKTDC Deputy Director of Research who led the study, revealed that more than half of surveyed consumers had purchased Hong Kong products or services, with 78% willing to pay a premium for Hong Kong-sourced products and 84% willing to do so for services. Typically, respondents were willing to pay a 16.4% premium on products and 15.4% premium on services, with first-tier city residents happy to pay even higher percentages.
Hong Kong brands enjoy particularly strong reputation among mainland senior consumers. On the product front, 61% of respondents had purchased Hong Kong products in the past year, including health foods (24%), luxury goods (18%), and beauty and personal care products (17%). Regarding services, 54% of senior respondents said they had utilized Hong Kong services in the past year, including beauty and personal care services (25%), travel to Hong Kong, Macao and Taiwan (22%), and financial and wealth management services (20%). The full survey report is available at https://research.hktdc.com/en/article/MjI2ODIyMDg0Nw.
Eric Chu, HKTDC Economist, noted that when choosing products and services, happiness is the priority for mainland seniors, closely followed by value for money. The survey found that 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. This indicates that mainland seniors are particularly concerned about their health and quality of life while also valuing cost-effectiveness and functionality.
In terms of product consumption, 23.3% of respondents most frequently purchased food and beverages, followed by home products (12.6%) and clothing (12.5%). For services, 20.3% utilized body wellness services most often, followed by beauty and personal care services (16.7%) and leisure and entertainment services (13.1%). Despite the popularity of online shopping across the mainland, the survey showed that physical stores remain the primary consumption channel for the elderly demographic, with offline experiences, in-person consultations, and trust remaining prime considerations.
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 Electronics Fair (Autumn Edition) showcased fitness and health products relevant to the senior market, and the Hong Kong Toys & Games Fair introduced a new "Happy Ageing" label for silver market products. Additional research resources can be found at http://research.hktdc.com/en.
The implications of these findings are significant for Hong Kong businesses seeking mainland expansion. The research suggests companies should consider targeting higher-spending first and second-tier cities while focusing on the younger segment of the senior population. Enhancing offline experiences and fostering word-of-mouth recommendations, alongside optimized promotional efforts, will help Hong Kong businesses stand out in the mainland's rapidly growing silver market. With the silver economy projected to grow more than fourfold by 2035, this represents a substantial opportunity for businesses that can effectively meet the specific needs and preferences of China's aging population.
