Adapt or Else: Senior Citizens becoming a Massive Market

When a digital transformation races through global society, different demographics may catch on to the new way of doing things faster than others. However, that does not mean the older generation of “silver surfers” are to be left behind.  

The market does what it must, and it is now waking up to this reality. The populations of elderly citizens across the world are expected to grow considerably over the next two decades. What’s more? They typically have more spending power and disposable income, as well as more time at home, at least for those who are retired.  

Alibaba’s (BABA) news website, Alizila, recently reported that the brewing retail force demands easy-to-use apps and streamlined design from tech companies that want the senior citizens’ business.

To this end, several Chinese firms are developing new versions of their smartphone apps, catering to those with less digital intuition. Companies like Taobao, Youku, and Ele.me are some of those aiming to gain the senior citizen market.

For Alibaba, the stock has yet to react to any asserted adaptiveness to an aging wealthy population. Its valuation has come down considerably over the last year, even as ecommerce boomed around it. Meanwhile, TipRanks’ analyst rating consensus remains bullish, at Strong Buy. This is based on 20 Buy and 3 Hold ratings.  

The Chinese retail giant acquired Ele.me a couple years ago, and currently has upcoming earnings on February 1, 2022.  

While the pandemic accelerated trends toward digitization for everyone, it is important not to forget the elderly who were forced to adopt to new norms. For the first time, many older individuals used Zoom (ZM) and online communication tools. Mobile banking, delivery services and even gaming platforms were taken up en-masse by senior citizens.  

In general, many simply have only recently attained digital access to these tools, and are now ready to transition to a more connected lifestyle.  

Alizila stated that the “global population of retirees will grow 65% from 2021 to 2040,” and that “by 2050, the number of Chinese elderly is forecast to hit 380 million or nearly 30% of the population.” This top income band is not a force to be forgotten about.  

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