As China transitions into an ageing society, the spending power of the senior demographic—often referred to as the Silver Generation—has emerged as a force to be reckoned with. With nearly 300 million people aged 60 and above, experts project this number will exceed 400 million by 2035 and reach around 500 million by the middle of the century. Currently valued at approximately 7 trillion RMB (≈ €900 billion), China’s silver economy is expected to expand to an impressive 30 trillion RMB (≈ €3.9 trillion) by 2035, unveiling tremendous opportunities for businesses to tap into.

For European merchants, this demographic represents a significant business opportunity. With strong purchasing power and a preference for high-quality goods and services, China’s silver generation also chooses completing transactions through familiar payment methods such as Alipay and WeChat Pay. By catering to their needs in areas like cross-border travel, health and wellness, premium products, and cultural experiences, European businesses can seize the opportunity to connect with this growing and influential consumer group.

Shopping and travel habits of the Silver Generation:

  • Passion for travel: The Silver Generation is a key driver of international tourism. According to Ctrip data, travel bookings by those aged 50 and above increased by over 20% year-on-year in 2023, with outbound travel orders surging by more than 40%. This group prefers off-peak and in-depth travel, often choosing culturally rich and scenic destinations such as Spain-Portugal and UK-Ireland itineraries.
  • Embrace fashion and beauty:  With rising pensions and an improved retirement system in China, senior consumers are showing a growing appetite for fashion and entertainment-related consumption. Their spending on jewellery, skincare, medical aesthetics, and clothing has surged, reflecting a strong desire for the enjoyment of life.
  • Preference for high-quality goods: When it comes to shopping, this segment demonstrates a strong demand for luxury brands and customised products. High-value items such as jewellery, watches, and premium apparel have seen significant growth in sales. From January to September 2024, jewellery purchases by this demographic increased by 201% compared to 2019, while beauty and skincare spending grew by over 70%.
  • Focus on service and assurance: This segment also values excellent shopping experiences and reliable after-sales service. They appreciate merchants offering Chinese-language assistance, Chinese payment methods, and clear, efficient return and exchange policies. For European businesses, especially in luxury retail, adapting to these needs is crucial for attracting and retaining this group.

Digital lifestyle shift for Silver Generation

This generation is increasingly adopting digital lifestyles, growing internet usage and engagement with trending topics. They are increasingly engaging with online shopping and social media for recommendations. Key points include:

How European merchants can capture China’s senior consumers

  • Tailored product or service bundles: Create personalised packages catering to this group’s needs. This could include value-added services such as extended warranties, offering bundled travel packages that include assistance and health benefits, and ensuring your offerings’ convenience and relevance.
  • Enhance in-store service: Provide Chinese-language assistance, such as introducing bilingual signs and brochures or providing Chinese-speaking staff, to ensure a seamless and welcoming shopping experience.
  • Boost online experience: Tailor the digital experience by offering senior-friendly website navigation, large fonts, easy-to-find customer support, and live chat options in Chinese. Include personalised product recommendations based on browsing history or preferences. This will mirror the in-store experience of having attentive service and make shopping more accessible in the digital space.
  • Establish a presence on Chinese social media: Given the unique nature of China’s digital ecosystem, it’s essential to leverage popular platforms like XiaoHongShu and WeChat. By creating engaging content, such as showcasing the craftsmanship behind jewellery pieces, you can capture the interest of senior consumers and strengthen your connection.
  • Offer familiar payment methods: Support their most trusted mobile payment methods, Alipay and WeChat Pay, for improved customer experience. Additionally, use the marketing features of these payment platforms to engage senior customers with promotions and brand-building opportunities.
  • After-sales assurance: Offer efficient, flexible return and exchange policies, along with personalised follow-up services, including luxury repair options for high-end items. This will help build customer trust and reinforce brand loyalty.
  • Leverage cultural elements: Design experiential and interactive activities that incorporate local culture, such as art exhibitions or craft classes, to attract senior travellers. These events can be further enhanced by aligning them with holiday promotions and offering unique seasonal products or packages to increase their appeal.

The Silver Generation in China represents an influential force in the global consumer market. With significant purchasing power and distinct needs, this generation offers substantial opportunities to European merchants. These merchants can successfully engage this rapidly growing demographic by offering customised products, Chinese-language support, tailored payment options, and targeted marketing strategies.

Ready to learn more? Contact our experts at PayXpert today to seize this opportunity and boost your competitiveness in the market.

*PayXpert provides the product and services in all Europe and UK. The acquiring services are managed by PayXpert Spain for Europe and PayXpert Ltd for UK. More details about the products and services offered by PayXpert are accessible via their official websites in the UK (www.payxpert.co.uk) or Spain (www.payxpert.es)