The nation's service industry should reposition its market focus in the coming decade, as the demographic trend of an aging population, with older women outnumbering their male counterparts, will reshape the lucrative consumer market, an industry watcher said yesterday.
"Businesses are lagging behind in providing products and services designed for the elderly," Yuwa Hedrick-Wong (王月魂), a Singapore-based economic advisor to credit-card giant MasterCard International, told a press briefing in Taipei.
Citing a report conducted early this year, he said Taiwan's consumer market will be worth NT$6 trillion (US$195 billion) in 2013, with 70 percent of the expenditure expected to be contributed by households residing in cities as a result of urbanization.
Following in the footsteps of other advanced nations, Taiwan is experiencing slowing population growth, with the number of "empty nesters" rising quickly. The term "empty nester" refers to those above the age of 64 with no financially dependent children.
In this demographic, women are poised to have a bigger say than in the past, as the number of female entrepreneurs is increasing, while women generally live longer than men.
The report estimates that by 2013, the nation will see an increase of some 1.3 million women over the age of 50, while the number of men older than 50 will only increase by 0.9 million.
"Think about what they want, what premium `experience' they are expecting," Hedrick-Wong told a roomful of banking executives.
Recounting his experiences in examining various countries' consumer markets, he said that he has been unable to find a single shopping mall designed for women aged over 65 in Asia, where Japan and Hong Kong have the oldest populations.
"Of course, there is nothing wrong with focusing on the young market. But the elderly are healthier, have huge assets and live an active life. Businesses must be innovative in thinking simultaneously of function and experience," the two key elements to cater to the often-neglected but potentially lucrative consumer segment, he said.
As Taiwan will be transformed from a product-based economy to an experience-based one, he urged companies to look to Scandinavian societies, in which businesses create brand-new learning environments and curriculums geared toward older people. Online, one-on-one or other convenient courses are provided for them by integrating innovative services.
In contrast, Japan is focusing on technological advances to meet the growing needs of senior citizens, he said.
Taking robotic dogs as an example, Hedrick-Wong said that a better solution to providing company for lonely people would be to provide well-designed social platforms or communities to enhance communication and interactions among the elderly.
Credit cards could also be transformed into more flexible payment tools by introducing strategies such as senior-friendly bonus-point programs and offering incentives to use credit cards abroad, given the fact that senior citizens are constituting a major force in foreign travel, he said.
Echoing his comments, Kevin Huang (
Feasible programs might include using credit-card bonus points in exchange for zero handling fees in fund investments, Huang said.
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