Agewell Foundation's Study Report: Changing Patterns of Income & Expenditure in Old Age: An Assessment April 2018 DELHI
An
Assessment
April
2018
DELHI
An Agewell Initiative
Under
RESEARCH & ADVOCACY CENTRE
(For
Needs & Rights of Older people)
********************
Agewell Foundation
(In
Special Consultative Status with the
ECOSOC at United Nations since 2011)
-Associated
NGO Status with UN-DPI-
M-8A, Lajpat Nagar-II,
New Delhi-110024, India
+9111-29836486, 29840484
agewellfoundation@gmail.com
In
today's market oriented world, everyone's life is affected by never ending
possibilities in the market and each one of us is a consumer. India is one of
the fast growing economies and with rapid globalization, liberalization and
privatization of Indian economy; India is already world's 6th
largest economy in 2018.
Till
few years back, Indian market was focused on younger people and older persons
had never been considered as primary consumers due to their negligible presence
in national population as well as traditional and socio-economic scenario. With ever growing population of old people
particularly because of increasing life expectancy of older persons in India,
the market scenario has also started changing. Currently India is 2nd
largest populous country of the world.
India has second largest elderly population i.e. 130+ million older
persons (60+) and by the year 2021 approx. 11% population of the country will be 60+.
According
to data from the Sample Registration System (SRS), life expectancy at the age
of 60 has increased from 14 years in 1970–1975 to 18 years in 2010–2014 with
women living about two years longer than men.
Owing to the change in financial status and improved
independence of older persons, particularly belonging to middle, upper middle
and upper classes, their role in financial activities has also undergone
significant change. Today, they can be observed to be active buyers as well as consumers
of various products and services and embarking on other financial activities.
Currently, Delhi has approx. 21
Lakh older persons (60+), which constitute about 8.5% of total population of
Delhi.
Source:
Report of Ministry of Statistics & Programme Implementation, Govt. of India
II. Overview
Consumption
is frequently used for measuring economic wellbeing of older persons. People
generally tend to accumulate assets when income is high and use these assets
when their income declines. That’s why, older and younger generations save less
than middle-age individuals do. Thus, savings are mostly accumulated during
working life and used for financing consumption and maintaining the health and standard
of living in old age.
Older
persons constitute an important and growing consumer group. Their share is
rising very sharply as they have considerable purchasing power, and they tend
to use up accumulated savings in old age.
Older
persons, who have earned money with their hard work and efforts and have
self-acquired net-worth or inherited wealth, value of money is important for
most old people. With sound financial status, they believe that consumer is the
king and tend to seek good value for their money. It has also been observed
that financially well-settled older persons prefer to utilize their purchasing
power for better quality of life in old age.
Older
persons have considerable purchasing power, which is backed up by the family
support that their respective younger family members provide to them.
Government has also undertaken efforts to enhance the economic well-being of
older persons. Government schemes have implemented significant parametric
reforms for social security and healthcare with increased pension amount, tax
concessions, discounts and benefits specifically for older population.
Changing
family structures due to popularity of nuclear family system and rapid
urbanization trends, large number of Indian elderly population is living alone
and the trend is increasing day-by-day. The traditional family home care
approach for the elderly is being challenged, creating a void to be filled by
the government / non-government / private sector.
In Delhi majority of elderly living alone opt
for home-based elderly care and many Indian elderly are often not aware of the
availability of many at home or residential-based care, rehabilitation and
counseling services.
In
view of fast changing family system, there is huge demand of old age related services
in Delhi.
Health Foods & Nutritional
Supplements
Delhi
is seeing a rapidly growing number of diet-related chronic diseases such as
high blood pressure, diabetes and obesity. Indian elderly consumers are becoming
more health conscious. Despite an aspiration for maintaining healthier eating
habits as a top aim, they are turning to self-medication such as health
supplements; vitamins and minerals to strengthen their immune systems and boost
their energy levels.
The
majority of them are willing to pay higher premiums for food products deemed to
be healthier and more active.
Digital Technology
With
growing interest in digital technology among older persons, due to increasing
affordability, greater user-friendliness and various convenient apps for socializing
or entertainment, smart phones are gaining popularity in elderly community.
Increasing social mobility and urbanization is stimulating demand for
innovative gadgets, which can help alleviate fears of loneliness and isolation.
In addition, older consumers are increasingly pursuing digital health devices
such as blood pressure monitoring, wearable medical alert systems and various
electronic aids to assist with daily living.
Personal Care products
Modern
day elderly are also conscious towards their appearance and body. They take interest in style, relevant fashion
and better services, as they have a strong desire to enjoy their social lives
more, regardless of their age.
Travel, Leisure & Entertainment
Elderly
consumers who have more money in their pockets and leisure time, like to travel
more often to improve their social and health wellbeing, socializing and
relaxation. Elderly consumers prefer to travel with companions, either in small
groups of families, and with former colleagues or friends. They commonly
indicate that price is less important than who they are travelling with and the
destination.
Higher
incomes and rapid urbanization are generating a growing demand for leisure and
entertainment. Apart from the travel
industry, entertainment industry has all experienced tremendous growth in
recent years. Older people are looking for a more sophisticated lifestyle with
greater personal enjoyment and leisure time.
Financial Services & Products
This
growing elderly consumer segment is not only opening up potentially lucrative
business opportunities for manufacturers and service providers, but also for
the financial services industry – where India, unlike most developed nations,
has previously not focused on. With decent personal savings in hand but lack of
investment options, they have turned to participate in various types of
investments, such as FDs of banks. Elderly with high net-worth value are
enthusiastic and relatively savvy investors, but they are left largely to rely
on their own or younger family members' expertise when engaging in financial
trading due to a lack of financial consultancy services and investment products
to aid their decision making.
High savings habits of middle class
older persons
Older
persons in India, particularly middle class have strong tendencies to save, as
average retirement pension remains low.
Traditional
family support network is breaking down due to Urbanization and economic
development accelerated, along with the influence of the nuclear family system;
it has become increasingly difficult for younger family members to perform
their perceived duty to look after their elderly family members. Senior
citizens are becoming more economically independent; they do not want to be a
financial burden on their families, so planning for their future financial situation
is becoming essential.
Retirement benefits
The
financial services sector has huge potential, providing products and services
for the 130 million older people of India. The government has put continuous
effort into reforming the pension system, including encouraging pension funds
to invest in capital markets, pushing to expand their investment scope,
diversify risk and improve returns.
Insurance
With
rapidly ageing population and increased life expectancy, social security system
is struggling to cope with the large number of retired older persons who demand
long-term pension payouts and quality health care in the coming decades.
Private insurers, both domestic and foreign, are expected to play a bigger role
in providing protection for senior citizens, ranging from life and pension
insurance to healthcare and long-term care insurance.
Wealth Management
Majority
of older people prefer to invest their savings and earnings in Banks' various
saving schemes. However, with rising net-worth value and annual income they are
now looking new options to invest their financial resources. Currently real
estate, stock market, mutual funds and gold schemes are some of the favorite
investment options.
III. Aims & Objectives of the Study
Over the years, overall financial status of older
people has improved, primarily due to fast changing socio-economic conditions,
ongoing open market policies, liberalization of economy and host of other
factors. The main objective of this research endeavour is to assess the status
of older persons as consumers through an in-depth qualitative study. Aims and
specific objectives of the study are as under;
· To
assess the financial status of the older persons.
· To
assess the net-worth value of older persons
· To
assess the increasing purchasing power of older people
· To
assess the needs & requirements of older persons
· To
assess the contribution of older persons in their families' overall consumption
· To
assess the role of older persons as buyer, negotiator, influencer, payer and
actual user
· To
assess the expenditure pattern of older persons
· To
enlist opinions and views regarding the protection of consumer interests of
older persons
· To
assess the growing markets of products and services useful for older persons
IV. Scope & Methodology
This study is an attempt to understand status
of older persons as consumer in view of current market scenario. It has been
endeavored to explore the emerging role of elderly consumers in business and
economy.
Sampling
Frame
A list of older persons who were willing to be part
of the study was first prepared. As the literature review suggests the older
people are faced with diverse issues, problems and challenges ranging from frailty
to functional inadequacies; physical & health problems; social isolation
& loneliness; neglect, economic insecurity etc. Therefore, while developing
this list of respondents or the sampling frame the representation of this
diversity was kept in mind so that vast variety of challenges, particularly
financial issues that older people face are culled out from this research.
Sampling
Method, Sample Size & Duration
The respondents who
comprised the sample for the study were selected on the basis of random sampling made on the basis of
gender, age-group etc.
Sample
Size: A total of 1000 respondents were studied by 40 volunteers across Delhi. The survey
was conducted during the month of March-April
2018.
As
for as gender wise composition of the sample is concerned, out of 1000 total
respondents, 476 respondents were older men and 524 older women. However, the
number of older women respondents was comparatively higher as is depicted in
the diagram.
Tools and techniques for data
collection
Main emphasis was on
qualitative information therefore, a more
intuitive Approach was adopted for the research so as to arrive at an understanding of the issue to cull out a sample.
The information was enriched with the help of focused group discussions and in-depth interviews.
· Out
of 1000 elderly interviewed during the survey, 565 respondents (56.5%) were
found to be in the age group of 60-70 years,
312 respondents (31.2%) were
between 71-80 years and the remaining 123 (12.3%) respondents comprised the oldest
old group (81+ years).
V. Major Findings
Primary
Source of Income of Older Persons
· During the survey, 30.1%
elderly respondents said that their primary source of income was their monthly
pension. Out of 1000 elderly respondents, 301 respondents said that their main
source of income is pension.
· Among sample
respondents, 19.4% respondents claimed that their main source of income is
money earned in form of rental from their land / house properties, interest on
investments, dividends, etc.
· As per 20.2%
respondents, their main source of income in old is their jobs or other gainful
engagements. 202 elderly people said that they are engaged in at least one
gainful job/occupation, even after retirement.
· Approx. 1/10th
elderly respondents reportedly claimed that they earn their major part of
monthly income from their respective business/professions. Out of a total 1000
respondents, 105 claimed this.
· Further 11.5% elderly
respondents said that they depend on their govt. sponsored old age pension scheme,
which is their primary source of income in old age.
· During the interview
with sample elderly respondents it was also found that 8.2% elderly people have
no or marginal income in old age. They are totally dependent of others for
their day-to-day needs and requirements.
Major source of Income Gender-wise
· When data pertaining to
income of older persons, further analyzed gender-wise, it was found that for 28%
elderly women pension/family pension was the major source of income in
comparison to 33% elderly men.
· For 21% elderly men
jobs/gainful engagements were major source of income, while 19% elderly women
were earning major part of their income from their jobs. 14% elderly men in
comparison to 8% elderly women were found receiving their primary income from
business/professions.
· While 14% elderly women
and 2% elderly men claimed that their income is nil / negligible in terms of
money.
Monthly income of older persons
· 15% respondents reportedly
claimed that they earn Rs. 25000 and above every month, while 13% elderly
respondents said that their monthly income is above Rs. 20000 but below Rs.
25000.
· 19% elderly respondents
were found in lower-middle income group i.e. Rs. 10000/- to Rs. 15000/-
bracket, while 14% elderly respondents were found in middle income group i.e.
Rs. 15000-20000.
· Every 5th
elderly were found in the lower monthly income group of Rs. 5000-Rs. 10000. Out
of 1000 elderly respondents, 203 elderly said that their monthly income is
between Rs. 5000 and Rs. 10000/.
· 20% elderly respondent
claimed that their monthly income is nothing or negligible.
· Gender wise analysis of
data shows that every 5th older men and every 10th older
women have monthly income of Rs. 25000 & above.
· Approx. 35% older men claimed
that their monthly income is something between Rs. 15000 and Rs. 25000, while
19% older women were found in this group.
· Approx.1/3rd
elderly men reportedly were earning monthly income of Rs. 5000 to Rs. 15000,
while approx. 45% elderly women said that their monthly income is between Rs.
5000 to Rs. 15000.
· Every 8th and
4th elderly men and elderly women respectively were found with no or
negligible monthly income during the survey
Net-worth value of older persons
· Out of total 1000 elderly
respondents interviewed by volunteers during the survey, 66 % respondents
claimed that they have properties in their name in the form of land/plot, etc.
· More than 74% elderly respondents
have house property in their name. Out of 1000, 745 respondents said that they
own house.
· Every 22/5th elderly
respondents (41.4%) have some kind of investments/savings with banks or other
financial institutions. 414 respondents accepted that they have invested their
financial resources in various investment schemes run by banks/financial
institutions, real estate, stock market, etc.
· More than ½ elderly respondents,
interacted during the survey reportedly said that they have jewellery and other
valuable ornaments with them, bought over the years or gifted by someone to
them.
· Less than half (48.5%) elderly
respondents claimed that they have other valuable properties in their name or
under their ownership. Other properties included moveable properties like
vehicle, tractor, furniture, household items, cattle, equipments, etc.
· When value of net worth of older
persons was tried to assessed, it was found that more than 1/5th
elderly respondents (21.4%) have net-worth value of Rs. 20 Lac and above as
they own real estate, house properties, valuable movable properties, etc.
· Among these respondents, 85 i.e. 8.5%
of total respondents said that their net-worth value is > Rs. 50 Lac while
another 13% elderly claimed their net-worth value is less than 50 lac but above
Rs. 20 Lac.
· Among respondents, almost every 5th
elderly (21.41%) has net worth value of Rs. 10 Lac – Rs. 20 Lac while every 4th
elderly (25%) has properties worth Rs. 5 Lac but below Rs. 10 Lac.
· It was also found that approx. 1/3rd
elderly respondents have properties in their name worth Rs. 5 Lac and below.
Among these 16.4% respondents' net worth value is almost nil.
· When impact on increased net-worth
value of older persons due to various factors, during the past decade was
assessed, it was found that according to 45% respondents, their net worth value
has increased significantly.
· 36.8% elderly respondents said that
they noticed average increase in their net worth value during the last decade.
· Approx. 12% older persons, contacted
during the survey claimed that there is no significant increase or almost no
change in their net-worth value during the past 10 years, while 6% elderly
respondents claimed that their financial value of their properties decreased
during the past decade or they lost value.
Purchasing power of Older Persons
· According to 81% sample
elderly respondents, spread across Delhi, purchasing power of older persons has
increased during the past decade.
· Approx. 7% elderly
complained that their purchasing power has decreased over the years, while 3%
said that it remained unchanged and 9% elderly respondents expressed their
inability to respond the question.
· Out of total 814
elderly, who reportedly claimed that there is increase in purchasing power of
older persons, 628 elderly (77.2%) said that increase in purchasing power is
significant, while 104 elderly (12.8%) opined that its average and remaining
10% elderly respondents said that increase in purchasing power of older persons
is nominal.
Factors responsible for increase in purchasing
power of Older Persons
· Most older persons (26%) reportedly
claimed that their purchasing power has increased primarily due to their well-settled
children, who have shared their income with their ageing parents.
· After this, 20% elderly respondents
claimed that increase in prices of their real estate properties is major factor
their increased purchasing power in old age.
·
For
1/5th elderly respondents (20%), their well-paid jobs / higher
pension amount is major factor responsible
for increase in their purchasing power.
·
21% elderly said that increase in their purchasing
power is primarily due to high returns on their properties.
Actual Control on Purchasing power
of Elderly
·
From the data collected from elderly,
during the survey, it was found that 37.8% elderly respondents use their
discretion while exercising their purchasing power as their purchasing power is
not controlled/directed by their family members or other.
·
Almost 1/3rd elderly
respondents (31.7%) reportedly accepted that their purchasing power is often
controlled by their younger family members.
·
Approx. 25.1% of elderly respondents
(214 elderly out of 851 elderly), enjoying good purchasing power said that
their spouses control their purchasing power.
·
Further 46 elderly (5.4%) said that they
are not free to use their purchasing power as other people control their
purchasing power.
Major Requirements in Old age
·
During the survey, 89% elderly respondents said that
they are facing medical/healthcare related problems, while approx 11% claimed
that their medical/healthcare related requirements are insignificant.
·
45.9% elderly respondents accepted that their social
and family support requirements are higher while 54.1% respondents did not find
their social/family support requirements worth mentioning, as majority of them
were enjoying family support.
·
More than 1/3rd respondents (37%) claimed
that their financial requirements are also among their major requirements in
old age, while 63% elderly claimed that their financial problems are not so
important for them.
·
It was also found that 20% elderly respondents were suffering
from legal problems, thus they included legal requirements among their major
requirements in old age.
·
Further, 23% elderly also responded that they are
also facing other problems other than medical, social, financial and legal.
·
When data pertaining to major requirements in old
age was further analyzed gender wise, it was found that old people facing
medical/healthcare problems include 66% men and 34% women.
·
Among elderly facing social / family problems, 56%
were men and 44% women.
·
Elderly men were also facing financial problems more
than elderly women.
Proportion of Expenditures
· When proportion of expenditure made
by 803 elderly respondents, who have some kind of monthly income analyzed, it
was found that 29% of their income is spend on medical/healthcare
products/services.
· Elderly respondents claimed that 27%
of their total income was spent on purchasing of foods/clothes for self/spouse.
· They spent 22% of their income on
their respective families/social obligations like education/ marriages of
grandchildren, treatment of family members.
· Almost 1/6 part of their income (16%)
was invested by them with various banks/financial institutions, etc.
·
During the study of the data compiled by volunteers,
it was also attempted to ascertain the Income and Expenditure Ratio of elderly
respondents. 58% of the total respondents reportedly claimed that in their
opinion their income is greater than their expenditures.
·
6% elderly respondents said that their income is more
or less equal to their expenditures.
·
According to 37% elderly respondents their income is
less as compared to their expenditures. They said they hardly found their
income enough to meet their expenditures.
·
On an average, 18% elderly respondents consider
their income is good enough in comparison to others, while 23% said their
income is not good but average.
·
Almost 1/4th elderly respondents claimed
that their income is below average, while 15% elderly said that their income is
very low while almost 20% claimed that they have no/ negligible income.
Older
Persons contribution in Family Expenditure
· 58%
older persons claimed that they contribute in their family's expenditures while
20% elderly respondents said that either they are not in a position to
contribute in their family's expenditure or they don't contribute at all.
· 22%
elderly respondents claimed that they contribute in their family's expenditure
sometimes only.
V. Behavior of Older People as Consumers
Are Older Persons primary shoppers
in traditional family system?
In
traditional family system, older persons are generally given the responsibility
of shopping for day-to-day utilities for their respective families. As majority of them enjoy this responsibility
as they may have comparatively more free time, they may be head of the family,
who look after financial matters of the family.
Are they willing to pay extra for
quality?
Older
consumers are not necessarily conservative and purely price-sensitive, they
often pursue value and quality rather than low prices as they understand that
quality costs. They are most likely to spend more on health-related products
such as food and pharmaceuticals. However, there is a growing trend in
purchases of higher-end goods such as personal luxury items.
Are they open to new ideas and
things?
Although
they tend to stick to products or services they are familiar with, they are not
hesitating for newer ideas. They have a strong desire to improve their quality
and enjoyment of life in retirement and they are likely to make choices based
on experience and a confidence in knowing what they like, and having the
patience and self-confidence to learn and to try new things.
Are they health and wellbeing
oriented?
Changing
lifestyles and the increasing prevalence of chronic conditions have made
elderly consumers more concerned about their health and well-being. They are
increasing their purchases of health foods and nutritional supplements. While
also paying more attention to their emotional health by participating in
religious, travel and leisure activities.
Are they ready for Digital connectivity?
Old
persons in Delhi, particularly young old people (60-70) are taking up the
digital age by driving growth in online transactions, online payment and social
networking. The trend of digital connectivity will continue among the elderly
segment as consumers increasingly perceive the benefits and convenience of
internet based activities.
VIII. Representative
Statements
"After
retirement from government job, I am spending my time with my family members.
Since I have no work to do, I do most of
the shopping for my family and while purchasing of various services and
products, I often use my own discretion and knowledge. I do not need any advice
from younger family members before shopping."
-Rajkumar Verma, 67, Kalkaji
"I have to support my younger family
members, as their income is limited and not enough to take care of their needs
& requirements. I have house properties in my name and get fine income in
form of rentals. Despite being the head of the family and main earner, my
family members hardly consult me whenever they go for shopping and negotiating
financial matters."
-Deepak Khurana, 71, Punjabi Bagh
"My poor health condition is a cause
of concern for me and my family members. My sons have to spend a lot of their
money on my healthcare needs and care in old age as I have no source of income,
except negligible old age pension. "
-Mohd Yaseen, 85, Karol Bagh
VIII.
Observations
· For
older persons, who have earned money with their hard work and efforts and have
self-acquired net-worth, value of money matters most. Older persons with sound
financial status, live to the fact that consumer is the king and tend to have
good value for their money. It has also
been observed that financially well-settled older persons prefer to utilize
their purchasing power for sake of better life in old age.
·
With
high net-worth value, older persons
have higher purchasing power, but they hardly use their discretion while
exercising such powers. Younger family members often control their decisions. That's
why in spite of major role and active participation of older persons in
country’s economy, they are still considered as negligible consumers in
comparison to the younger generation.
· Due
to change in financial status and ever increasing independence of older
persons, particularly belonging to middle, upper middle and upper classes,
their role in financial activities has also undergone significant change over
the years. Today, they can be observed to be active consumers of various products
and services and embarking on other financial activities.
·
Net-worth
value of older persons has increased primarily due to sharp increase in real
estate prices over the past two decades. During the survey it was also observed
that property entitles remain in the name of older persons for longer years as
their life span has also increased significantly over the years.
·
It
has been observed, that attachment of older people towards their financial
resources and properties has increased over the years due to comparatively
longer life span in old age. Ever increasing role of money in modern lifestyle
is also seen as major factor responsible for older people's attachment towards
financial resources.
·
With
changed socio-economic and demographic scenario, mindset of older persons have
also changed towards utilization of their net-worth as they want to get fuller
benefit of it during their life.
IX. Expert's
Observation
Senior
Citizens as a Buying/Consumer Segment
Whenever any product is
transacted, there are 5 roles being played actively on the buying side:
1.
Buyer: The role of deciding which of the
products must be bought from among the alternatives available. This role would
span from the identification of alternatives to the finalization of the
ultimate choice.
2.
Negotiator: The role of negotiating the
final price and the terms of payment and delivery.
3.
Payer: The role of actually footing the
bill.
4.
Influencer: May be responsible for no
decision but may exert a mild to strong influence on the decision making at
various stages.
5.
Actual user: The person (s) who would be
the real user / beneficiary of the product.
Quite often, a single
individual may play many or all of the above roles. Hence, the terms “consumer”
and “buyer” and “customer” are generally used interchangeably. However, a
little thought would help one see several situations in which the roles are
played by different individuals – thereby increasing the complexity of the
buying decision making process. For example, when a car is bought for the secondary
earning member of the household, the Actual User is the particular individual
but the Payer may be the lead earning member, who may also be the prime
negotiator. The kids and elders in the family may have an influence on the
purchase decision. An intelligent marketer would be alert to this reality and
would target different elements of the marketing communication to address all
the participants in the decision-making process.
Senior
citizens as a target audience for marketers
The popular discourse
in Delhi today is that Delhi has a huge and growing young population with an
insatiable appetite for consumption. Many marketers are focused on the youth as
the primary target for products and communication for a wide spectrum of
products – be it vehicles, vacations, gadgets, personal care products, apparel,
entertainment and what have you. The segment of senior citizens appears to have
been relegated to a much lower priority. However, marketers need to revisit the
importance of senior citizens as a target audience for their efforts. For this,
they must carefully examine and understand the involvement of the senior
citizens in each of the roles enumerated above.
There would be several
products in which the seniors are playing ALL the roles. This would be true for
almost the entire spectrum of products in cases where the senior citizens
financially independent and are living by themselves. However, very often
senior citizens may be staying as members of a joint family. In such
situations, they may often exercise a very powerful influence on the purchase
of several products and services – even if they themselves may be a part- user
or a non-user. This could be because of social and cultural traditions of India
or, at times, also because the household is partly dependent on the wealth of
the senior citizens for the quality of survival. The wealthy seniors in Delhi
often indulge the youngsters with gifts – hence they exercise influence on
purchase decision of products which they don’t use themselves! In addition, given
their financial strength and experience, they may be the most important
decision makers for financial products and services and real estate for the
entire family.
Senior citizens who are
fit and active and yet embedded in joint families also tend to contribute to
sharing in household workload. One dimension in which they often contribute is
to manage the regular shopping responsibilities of the family. They may not be
funding the shopping, but they would be making most of the decisions for the
products and consumables of regular use. In these cases, the seniors are the
finicky Buyers and demanding Negotiators though not the payers. Marketers would
overlook their extreme importance only at their own peril.
Then there is a large
spectrum of products for which the senior citizens are the primary Actual Users
– medicines, hearing-aids, walking -aids, special clothing, gadgets, health
attendants, meditation classes, etc. For such products, they may or may not be
the payers or the buyers – yet the products are for them. With the numbers of
senior citizens growing, this class of products and services would see a fast
growing market. And, since senior citizens have several physical challenges,
they tend to need higher order of customization of products and services and
communication about the same– thereby enhancing the degree of challenge for the
marketers. It is for the enterprising marketers to take cognizance of the
challenge and establish themselves in positions of advantage relative to the
competitors.
-
Santosh Kumar Sood, Agewell
Volunteer
X.
Conclusion:
Since
ageing of the population affects every aspect of society and economic activity,
old people should also be recognized as a significant consumer group with
shared and specific needs, interests, and preferences. Governments,
manufacturers, service providers and civil society should take into account the
views of older persons on the design of products and delivery of services.
Older
persons constitute an increasing consumer group with specific needs and
significant aggregate purchasing power. Policymakers at various levels of
government must encourage manufacturers and service providers to bring to the
market more products and services for older people.
It
is therefore important to educate the market about products and solutions,
meant for older persons and to provide continuous training as well as support
to create a competitive market for older persons-friendly products and
services, so that specific needs and requirements of millions of older persons
could be addressed.
However,
Governments, service providers, and civil society should promote the concept of
creating products and services for all ages, which would support older persons’
full participation in society.
Aside
from the differences among key generations, there are many emerging consumer
trends in the market of products and services being used by older persons.
These trends are believed to be more prevalent in the next few decades and
particularly relevant to address market players.
Corporate
sector must consider the potentials of products and services tailored to the
needs of older persons. Policymakers may furthermore want to promote
mainstreaming ageing in the spheres of production, distribution, advertising
and the selling of products and services, given the great benefit for older
persons as well as companies and the overall contribution to the economy and
the society.
Designing
products in a more user-friendly and practical manner can enable older persons
to cope with difficulties in their daily life. Providing accessible and
available services and products can significantly contribute to the aim of an
equal social, economic, political, and cultural participation of older persons.
Agewell Foundation
(In
Special Consultative Status with the
ECOSOC at United Nations since 2011)
-Associated
NGO Status with UN-DPI-
M-8A,
Lajpat Nagar-II,
New
Delhi-110024, India
+9111-29836486,
29840484
agewellfoundation@gmail.com
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