The silver economy, markets represented by seniors, is booming. According to INSEEthose over 60 will be around 20 million in 2030 while there were barely 9 million in the 1980s. With healthy life expectancy increasing, those over 85 will exceed 4.5 million by 2050.
These figures point to a niche to exploit for entrepreneurs, especially since seniors are often willing to spend money to enjoy life and stay healthy.
Contrary to some preconceived ideas, this economy is also developing on the Internet! People over 60 are increasingly interested in new technologies and connect regularly. The COVID-19 crisis accelerated this trend.
The silver economy, a booming market
The silver economy, senior business or seniors' economy are relatively recent concepts. They refer to markets related to people aged over 60. According to some specialists, there are two economic perspectives in the field: the market of advanced age on one hand, which involves personal care services and everything related to health, and the senior market on the other hand.
It concerns those over 60 who are both fit and generally wealthier than in the past. Population aging is a fact in our country, but it is economically seen as a development opportunity. Various segments make up this market: tourism, culture, adapted sports, and commerce—particularly everything related to health and well-being—financial services and services intended to help with household tasks.
Seniors can also be divided into several categories. There are active seniors who are very involved in volunteering and politics. Some still feel the need to start businesses while others need supplementary income. There are seniors who enjoy life and want to relax, travel, and exercise. There are those whose health is the main concern because they have gone through physical ordeals or are ill.
And then some depend on assistance, whether medical, social, or familial. These different categories offer a unique opportunity to develop the silver economy market in the coming years. According to a study by the independent analysis firm Precepta, it is a profitable economy that grew by 150% up to 2015 and continues to evolve. It is a thriving market for jobs and will last over time.
Highly connected seniors
Do you think seniors stick to local shops? Wrong! They are increasingly connected and do not hesitate to order online, for example. The vast majority of seniors have internet access, whether on a desktop computer, laptop, tablet, or smartphone. The digital divide between younger people and seniors is gradually disappearing. They use the internet to read emails, browse and be entertained online, watch videos, shop, or do grocery shopping.
The COVID crisis changed the digital landscape and entered households exponentially. Videoconferencing became a preferred way to stay in touch with loved ones. Digital technology is an important element of the silver economy.
Connected devices for seniors’ well-being and health
Connected health brings together different technologies aimed at sustainably preserving health and well-being. Today, the concept of connected devices is no longer a mystery to seniors and is growing remarkably.
From watches that help stay fit or alert caregivers in case of a fall to tools that take the pulse or send ECGs to the treating physician, the senior market must reckon with the explosion of a rapidly evolving segment. These devices have become indispensable for the comfort and safety of people over 60. They also allow older people to stay in their homes as long as possible.
Seniors loyal to brand values
People over 60 find many advantages in online shopping, including freedom (75%), speed (74%), and interactivity (73%). However, they cite payment security as the main barrier. Nevertheless, seniors have a purchasing approach similar to younger consumers. They place importance on brand communication and the values brands convey.
This market is also very attached to companies' social and environmental qualities. Seniors do not hesitate to verify information about a website or brand before making a purchase, whether to check if the values align with theirs or for trust reasons (see the barrier due to online payments).
Products consumed by seniors
According to a study by CREDOC (Research Centre for the Study and Observation of Living Conditions), seniors' spending is divided into five categories. The first, unsurprisingly, is health, with 57% of those expenses made by people over 60. Next is food at 53%, then other goods and services, which include insurance and personal care, at 51%. Home equipment follows at 50%. Leisure, including travel, sporting activities and other leisure equipment, is not far behind and occupies a relatively important place.
Internet use is also highlighted. Among products ordered online are clothing, home equipment, cultural products and travel bookings. The COVID-19 crisis significantly contributed to the growth of online grocery shopping. The simplification of ordering systems, easier access and various delivery services put in place at that time helped drive this development. Regarding Christmas gifts, for example, more and more seniors buy online and take advantage of offers during Black Friday. They have the time and use it to find good deals.
Entering the senior market
If you wish open an online store, the senior business offers a large number of activities likely to reward your investments. The silver economy is where you should turn! Launch a line of classic but trendy clothing with simplified closures to allow seniors with reduced mobility to continue enjoying themselves and take care of their appearance. Think about home automation: connected devices that help maintain the interior (or exterior) of the home, and also monitor health, are very popular in the senior market.
For cultural products, people over 60 remain attached to paper and CDs, but are increasingly using e-readers. You can therefore create an online shop featuring the latest thrillers and romantic novels, box sets of the great classics of French and international music, comics (very important… also think about gifts for grandchildren), DVDs…
If you are an app professional, develop social or dating services if there's mutual interest. Emphasize life coaching, which can help people navigate retirement and better manage certain daily difficulties.
In this field, the startup AsWeShare launched a digital photo frame that allows photos to be shared live. This device is called “Familink.” It fosters social connection, which is essential for healthy aging. It is simple to use and does not require an Internet connection. It works with a phone app or by email. It is also possible to send messages or even make calls.
Still in the apps sector, the company Iti Communication enables everyone to enjoy the Web despite certain impairments. The app “Facil’iti” provides access to digital tools for people with disabling conditions (AMD, Parkinson’s…). Once the profile indicating the person’s disabilities is uploaded, websites can be viewed in an adapted version with more visible fonts or through color and contrast corrections…
Sébastien Vray, creator of Courseur.com, attracted more than 10,000 users with his concept built around ecological mutual aid. He received the SilverEco award for best service. Concretely, when someone goes shopping at one of the stores listed in the app, they indicate it. Another app user can then ask them to bring back items. The person who takes on that errand receives a small sum of money plus a percentage of the commission due to the app. That fee is paid by the person requesting the grocery pickup.
Offer trips that will be life interludes where you can combine discovery, culture and meeting new people. In 2014, Alexandre Israël created Senior’Evad and launched a special offer for 50–70-year-olds, called Groopiz.
Set up a home meal service. Meals can be tailored to specific health issues—for example, gluten-free dishes.
In the field of home care, a sector that helps older people stay in their homes as long as possible, there is the company SeniorAdom. Through a so-called "smart" device, it detects falls and medical episodes among elderly people. This tool is connected and wireless. Sensors installed in the home can identify an unusual situation and alert a preselected relative.
Our tip for creating a business for seniors
Now is the time to get into the Silver Economy! But beware: if you’re tempted to label your products with the word "senior," you may risk offending your target audience.
Even when products need to be adapted to the needs of those over 60, it’s necessary to find a marketing angle that doesn’t stigmatize them with a term sometimes considered pejorative…
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