On 29 Oct, People’s Daily published Mr Su’s article, Expand the Frontier of Grey Hair Economy on page 5. Mr Su is a member of Chinese Council of Economic Society , Chairman of Board of Huabang Holdings , Chairman of Board of Huabang Homestead Pension Group and Huabang Construction & Investment Group.
This article made prospect of Chinese pension industry, elucidated how to take some new opportunities of an aging society, possibilities of developing grey hair economy; prepare mindset, identify trends; to be adaptable to reform. Proactively involvement, release market potential, form coupled force through benign interaction among government, market and enterprises; realize economic value while encouraging filial love towards parents of all children of a society.
It is Chinese entrepreneurs responsibility to share the concern of the country and benefit the people. Now we copied Mr Su ‘ article here, and hope people can benefit, to have a bright future and accelerate economic development.
snapshot of People’s Daily
Original article
Expand Grey Hair Economy Frontier
Su Ruchun
Not long ago, office of State Senior Citizen Commission, Association of Chinese Pensioner publicized Progressing Chinese Pension Industry. The book analyzed the current status of aging stratum; the potential scale of pension industry is growing; demand from aged people are inducing new economic form. It attracts attentions from people to think about how to take the opportunity of aging society and expand frontier of grey hair economy.
Our country is one of countries that possess higher percentage of old people in population. We have the most aged people in numbers; the speed of aging is the fastest. The work load to meet aging people demand is huge. Our government attached more importance on aging issues and concluded that’ couple the aging issues with economic development, couple the meeting aged people demand and solving problems, identify virility and opportunity for country development brought by aging population’. This conclusion is full of dialectic genre, enlighten us about methodology for aging society. That is to say pressure could be motivation, it is an opportunity when we overcome the risk. The challenge and opportunity are the two sides of a coin. We must take the advantage of virility brought by the aging to enlarge and consolidate pension industry and gray hair economy. When we solve some problems we will inject vitality into economic development.
Along with the scale of aging market growing continually, we are facing window period now. Data shows, the market scale of aging has reached RMB 5700 billion in 2017. By 2050, the scale market will be RMB 48520 billion; pension industry will be RMB 21950 billion; consumption scale for old people will be RMB 60000 billion. Correlative service, such as home stay nursing, community, institutional, paramedic, will develop simultaneously. The market scale will be imaginative. Big Data and AI , some other information technology could be fused with pension industry. We are able to expect intelligent pension, informative pension, robot+pension, new retailing+pension, etc etc. They are fueling to the development.
Along with living standard upgrading and living concept changing, the consumption structure and demand changed a lot, in terms of quality, diverse, tailor-made, and convenience. The trend is from making living to enjoyment. The data of first three days of Golden Week of National Day show the senior people pursue both health and fashion. The figure of senior people to have body check, dental care, plastic surgery triple last year. At mean while, the old people are new force on digital consumption when they master mobile payment with their smart phone. Mobile payment is routine mode of life. Senior people not only be willing to spend on beautification and health but also on takeaway, online shopping, travel, entertainment, cuisine in steadfast way. All these are making people fancy future.
Surely, facing the opportunity, we shall make preparation all along. Deepen reform is the way to take the opportunity. It is conspicuous that pension industry is capital intensive. The investment shall spearhead into real estate, medical, manpower. The return cycle is a bit long to realize marginal profit. This is the reason we need special policy according to its character to enlarge pension industry. The virility of market and passion of participants can form comprehensive effect with benign interaction among government, consumers and enterprises.
Pension industry is a benevolent industry since it can benefit economic development and realize children filial concern towards parents. We shall solve any problem during development and make progress through overcoming difficulties. Surely and definitely we shall prevail in this new economic realm.
(The author is member of Chinese Economic Society Council)
