Many favorable policies for the silver industry are released and the market grows rapidly in 2013. It is forecasted by relevant people in the industry that 2014 will be a year of explosive industry growth due to step-by-step implementation of different policies for supporting the elderly and continuous launch of new projects into the market. And as a result of the implementation of more favorable policies, huge market potentials will be generated against the ageing issue and huge market demands will rise in many areas of the silver industry.

Step-by-step implementation of policy for supporting the elderly

The latest statistical figures from the National Statistics Bureau show that the ageing population in China has reached 202 million. This figure will increase by 10 million every year since 2013 and will double to reach 400 million in the next 20 years. The huge market potentials bring out a large room for development of the silver industry, and also cause the policy-makers to change their attitudes.

The biggest event in the pension real estate industry in 2013 is the promulgation of Several Opinions on Speeding up the Growth of Elderly Service Industry (Document No.35) by the State Council. This document provides a series of directional opinions for speeding up growth of the elderly service industry in China from the aspects of overall requirements, major tasks, policies and measures, as well as organization and leadership, and it covers total 19 specific aspects and 45 major tasks to be implemented. According to the appendix to the Document No.35, these 45 tasks will be assigned to 33 departments, and all of these departments are required to work out detailed plans for carrying out these tasks by the third quarter of 2014.

In 2014, the state will gradually perfect its policies on land supply, preferential taxes, and training and employment of talents on medicine, rehabilitation, nursing and psychology of the aged people; meanwhile, it will further improve its subsidizing policy, further support social efforts to set up elderly service organizations by means of providing subsidies, reducing loan interests and paying for services, and further lower the threshold for setting up elderly organizations by taking advantage of the capital, premises and personnel in the society.

In addition, the state will further perfect its policies on investment and fund raising in support of the silver industry. The government will not only provide more financial backup funds, but also take the initiative to support financial institutions to create new financial products or services. It will broaden the range of credit mortgage and pledge, satisfy the needs of the elderly service industry for credit loan, and make more credit investment by means of petty loan. Moreover, the government encourages and supports investment in the elderly service industry with funds from insurance (Insurance for Assurance), and sets up experimental spots for endowment insurance on reserve mortgage, i.e., supporting the retirement life with housing property.

It is also stressed in the 3rd Plenary Session of the 18th CPC Central Committee that the medical and health service and the elderly service should be combined and promoted. Elderly organizations, medical organizations and general hospitals of level-2 or above meeting certain requirements may set up their own geriatric department. Door-to-door service for the senior citizens may be offered by community hospitals to build up regional connection. Remote service in pilot spots should be strengthened. The above policies will serve as an important path for realizing the mode of “combining medical service and elderly service” in 2014.

Huge market demand in the silver industry

A series of policies will be put into practice in 2014, which will certainly create a favorable environment for the growth of the whole silver industry. Huge market demands exist in many areas of the industry. An overview of different markets in the silver industry is provided as follows:

The whole medical equipment industry in China has entered into a rapid growth stage over the recent years. Its total sales volume was 17.9 billion yuan in 2001 and then reaches 212 billion yuan in 2013, rising nearly 10 times in 12 years.

It is estimated that the home medical and health care programme will be the main guide for family's investment in the future. "By 2020, China will become the largest market for home medical equipment in the world, and by 2030, the scale of this market will reach trillion yuan", said by Bai Yu, Board Chairman of Beijing Rehabilitation Home Medical Equipment Chain Business Co., Ltd.

According to the forecast by the Medical Equipment Branch of China Medical Pharmaceutical Material Association, the sales volume of medical equipment through e-business channel is expected to be 2.5 billion yuan and its future growth is promising.

In 2012, the scale of the global health industry reached 11815.709 billion US dollars. In the same year, with a stable growth, the Chinese health industry is reaching 7015.544 billion yuan, year-on-year up by 15.68%.

At present, the market demand for elderly people’s products is between 400 billion to 500 billion yuan, but the market supply of products to the elderly people is less than 10% of the demand. And most of the products available are nursing and rehabilitation products such as crutches, wheelchairs and bedsore mattress. A big gap exists between the market demand and supply of the elderly people’s products for home use.

Relevant statistical data from Chinese Academy of Social Science show that, as the range of endowment insurance coverage keeps expanding in China, the total amount of pension to be extended upon retirement of the aged people will reach 2814.5 billion yuan by 2020, and will likely to reach 7321 billion yuan by 2030. The research findings published on China Textile Newspaper also show that the current output value of the silver industry in China is approximately 1000 billion yuan, and the potentials of elderly people’s yearly garment consumption alone is at least 200 billion yuan.

In 2009, the value of the market share in the elderly people’s health product market in China was 300 billion yuan, and the scale of the nutritional and health product market is expected to reach 1000 billion yuan by 2015, and the value of the market share in the elderly people’s health product market will rise to 2000 billion yuan.

It can be concluded from the above facts that the conditions for rapid growth of the silver industry in China are already there, the income of the elderly people is increased steadily year by year, the absolute value of the disposable pension is high, and the mindset of the elderly consumers has also changed greatly. All these will jointly contribute to the business opportunity for the industrialization of the silver industry.