How is China's aging population impacting the country's economy?

China's aging population is fueling a booming "silver economy," as retirees like 78-year-old Wang Shuyun are spending heavily on luxury goods and services. The number of people aged 60 and above is set to hit 400 million by 2035, and their total expenditure is expected to more than triple between 2025 and 2040.

What are some examples of how companies are catering to China's elderly consumers?

Companies like Lao Feng Xiang, a century-old jewelry firm, and tech giant Xiaomi are introducing products and services tailored to the needs of older consumers. Lao Feng Xiang has debuted AI glasses that provide an "elderly-friendly experience," while Xiaomi has added elderly-friendly functions to its phones and televisions.

How do the spending habits of China's retirees compare to younger generations?

On average, elderly households in China are spending less than younger generations. However, in aggregate, they are a major force, with their spending growth outpacing the overall population. By 2040, the 60-plus age group is estimated to account for 34% of China's total consumer expenditure, up from 24% currently.

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China's Retirees Fuel Booming "Silver Economy" with Luxury Spending

26 Aug

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Summary

78-year-old retiree in Beijing splurges on nutrition courses and designer shoes
China's elderly population set to hit 400 million by 2035
Older consumers' spending growth outpacing overall population

China's Retirees Fuel Booming "Silver Economy" with Luxury Spending

As China's population rapidly ages, the country's "silver economy" is experiencing a surge in growth, driven by the spending power of retirees like 78-year-old Wang Shuyun. In the past few months, Wang has spent 8,000 yuan on a nutrition course to improve her health and 1,200 yuan on Adidas shoes, indulging in a comfortable retirement funded by her far-above-average monthly pension of 10,000 yuan.

Wang is part of a growing cohort of some 300 million retirees in China, a demographic that authorities are now aggressively promoting. Beijing has issued over 20 policy statements this year urging companies to cater to the needs of the elderly, as the number of people aged 60 and above is set to hit 400 million by 2035 - roughly equal to the populations of the United States and Italy combined.

This rapid aging of the population is occurring alongside overall weak consumer spending growth, as younger generations grapple with economic woes. However, older Chinese consumers are proving to be a powerful economic force, with their total expenditure expected to more than triple between 2025 and 2040 compared to a 136% jump for the overall population. By 2040, the 60-plus age group is estimated to account for 34% of China's total consumer expenditure, up from 24% currently.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.