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Private Security Industry advances into the future
Private Security Industry advances into the future

Singapore Silver Industry Conference & Exhibition (SICEX) 2008

Silver Marketing: The State of Play in Asia 

10 – 13 January 2008 SICEX 2008 

Spire Research and Consulting

B2B Customer decision dynamics

Customer base analysis
Customer decision-making process & key decision makers influencers
Drivers of customer loyalty
Database of customer procurement
Research on specific customers
Recommended best practice in marketing, sales & post-sales support

Country economic, political and social analysis

Development of country plans, including legal/regulatory issues analysis, government relations strategy formulation & scenario forecasting

Price Analysis

Price trend analysis
Product price gap analysis
Product price positioning
Product price & specification database

Channel Research and Value Chain Analysis

Channel analysis – channel mapping, identities of key channels & their vendor alignments, drivers of channel loyalty and satisfaction, brand perceptions, satisfaction levels with principals, current competitor-channel relationship analysis

Competitor analysis and competitive environment analysis

Competitive environment:

Competitor strategy, targets and tactical plans
Competitor infrastructure
Competitor operations
Analysis & forecast of competitor financials
Recommendations on competitor threat response
Benchmarking from competitor best practices

Company investigation for partnerships and M&A

Profiling & SWOT analysis of potential partners
Evaluation and recommendation for business partnership negotiations

Market sizing and segmentation Market sizing and forecasting

Market segmentation by geographic region, by channel type, by price band & by customer segment
Market trend analysis, future price inflexion points

The Rising Silver Hair Segment

Aging populations are tomorrow‟s business opportunity

~20% of Asia is >50 years now, rising to ~40% by 2030
Big exceptions – India & Indonesia

Research Methodology

Survey conducted in May 2007 as part of Spire Research and Consulting published research program.

“Silver-hair” defined as aged over 50 - Extension of Spire‟s “Silver-Hair” survey with Singapore-based companies in 2006
Telephone interviews across seven Asia-Pacific countries
China, Hong Kong, India, Indonesia, South Korea, Malaysia, Singapore - Total sample size = 105 firms - Profile of respondents:

Extent of Business Operations in Asia

Operates in 3 to 6 Asian countries 30%
Operates in 1 to 3 Asian countries 41%
Operates in 7 or more Asian countries 29%

Existence of Silver-Hair Marketing Strategy in Asia

77% of MNCs interviewed currently do not have a marketing strategy targeted at the Asian silver-hair segment.

Plans to Strengthen Silver-Hair Marketing Strategy

Among the MNCs that currently have a silver-hair marketing strategy, 79% plan to strengthen these marketing efforts in the future.

Intention to develop Silver-Hair marketing strategy within the next 5 years (overall)

35% of MNCs that currently do not possess a silver-hair marketing strategy recognise a greater need for such a strategy in the medium-term (next 3 to 5 years).

Breakdown of Industries by Existence of Silver Marketing Strategy

Most MNCs in the ICT industry have no Silver strategy.

Industries with Greatest Benefit from Growth of Silver Market

The healthcare industry is perceived to be the greatest beneficiary of Silver market growth.

Country Markets with Greatest Potential for Silver Strategies

Japan and China are perceived to offer the greatest opportunities for Silver strategies.

Issues in Silver Marketing Why so little interest in Asias Silver segment?

Among international companies in Asia there is little excitement and urgency about the silver segment – There is a relative dearth of publishing & events, compared to eg PMEB and youth marketing – Most of the interest is shown by only a handful of industries Why? – Ageing trend is seen as long-term…no need to act now! – Perception: Silver segment has less disposable incomes & spending, less well educated.

Other factors:

Marketers have less experience and expertise about this segment

Accomplished Silver marketers will soon be highly sought after!
Dearth of media to run targeted campaigns.

Issues in Silver marketing

Too explicit positioning around age may alienate boomers?

Examples from the West: Heinz pureed food for seniors, Gap‟s Forth & Towne chain… yet Sony‟s “zoomer” cam-corder ads were well-received. Concerns that Silver campaigns may alienate younger consumers.
Not enough Silver-focused channels to enable targeted campaigns, implying need for programs like road-shows. Costs of redesigning products and testing/research. Lack of economies of scale Possible need for more high-touch pre-and post-sales service, as boomers may be less time-pressured

Case Studies of Silver Marketing in Asia Healthcare

Best World Best World is a publicly-listed, Singapore-based manufacturers of nutritional supplements, personal care products and healthcare-related consumer devices - Most of its consumers are in their 40s, with those aged >55 making up

Keenly aware that its brand loyal customers are moving into the >50 group
Recruits network marketers from the pool of older consumers of its products, to sell to Silver segment (aged >40)
Most marketing investment goes to direct selling infrastructure, with mass media advertising playing a supplemental role

High-Calcium Milk Powder Fonterra

Anlene series of milk powder launched in 1995

Contains 500mg of calcium per 6-ounce serving, about twice as much as regular milk
Targeted at women
The line now generates US$75 million in sales worldwide

Anlene Gold milk powder launched in 2005 in Asia

Dietary supplement that helps protect against osteoporosis with an additive that locks calcium into the bones
Targeted at elderly women

Anlene Bone Health check program rolled out in 2006 –over 1.2 million people scanned in 9 Asian countries

Free bone scans for elderly women using portable ultrasound devices, to raise awareness of osteoporosis
Public figures appointed Anlene Bone Health ambassadors

Special Mobile Phones NTT DoCoMo

Raku-Raku mobile phone launched in Tokyo, Japan Features:

Slow Voice‟ –slows down the spoken words coming through the earpiece for easy listening
Clear Voice‟ noise detection –takes into account surrounding noise levels and adjusts the earpiece and ringtone volume accordingly
Automated voice –reads out text from email or web pages and announces incoming caller identities
Pedometer –works out daily calorie consumption

Generation III in 2006, with Fujitsu and Fortemedia technology

Tailored Tours

Top spots for Silver holiday-makers are Asian countries like Taiwan, Japan, South Korea and China

>50% of China-bound bookings taken up by senior citizens

Dynasty Travel

Dynasty launched several elder-friendly tour packages to China and South Korea in 2007

Itinerary includes more time allocated for rest stops and toilet breaks
Special meals provided

Commonwealth Travel Services Corporation (CTC)

CTC introduced family-friendly tours four years ago and gives special discounts for senior citizens traveling with their families CTC currently has five such packages and at least 80% of the seats are filled each time.

Best Practices for winning in Asias Silver arena

Research, research, research! - In the short-term: avoid too much product redesign and leverage common platforms

Example of Sony which spent US$25m on advertising CE gadgets to the elderly
Try to target Silver segment by choice of media rather than developing new brand messages, to manage impact on the brand
There is a dearth of Silver-focused media but this will change

When making product adaptations for Silver consumers:

Pay attention to their physical attributes in designing not only product functionality and packaging but also waiting rooms, retail spaces, print-outs
Consider hiring boomers to sell to boomers
Manage value
an inflationary environment will challenge the Silver segment
Consider cross-industry alliances with other companies, eg nutrition and personal care

Key Take-aways How will Asias Silver segment be served in future?

Companies need to act fast on Silver marketing because it takes time to build knowledge, tweak products, rethink go-to-market processes and build brand loyalty

Some industries are in the fore-front of this effort (healthcare, lifestyle, financial) while others (eg ICT, automotive) need to catch up
China will be a major arena for Silver marketing, but other countries in Asia should not be neglected
“old”/aging countries like Korea & Singapore, as well as “young” countries with large populations like India and Indonesia
There is a lack of focal points for outreach to the Silver segment
Do Asian countries need an AARP equivalent?
E-communities and web portals will become more important: Asian versions of Eon and grandparents.com will spring up
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