According to the latest statistics, by the end of 2013, there is a population of 1.33 million household registered elderly persons aged 60 and above in Guangzhou, accounting for over 15% of the total population in the city, and this number is estimated to reach 1.8 million by 2020.

Recently, Information Times together with Jinan University conducted a "research on the status quo of elderly care consumption in Guangzhou", targeting at the elderly people aged between 50 and 75. According to the research findings, the main sources of income of the respondents include retirement fund and pension fund. Less than 40% of the respondents have their main source of income provided by their children. Elderly care services are not well popularized. Over 70% of the respondents do not have any experience of using any elderly care service or product. Nearly 80% of the respondents deem that the basic monthly consumption after retirement should not be less than RMB 800. Those respondents who have experiences of using elderly care products and services are quite satisfied with these products and services, and a majority of them spend less than RMB 10,000 on these products and services annually. Leisure, health regimen, cultural and recreational products are most favorite products. Respondents are expecting less expensive profit-making elderly care services for a better value.  

60% of the respondents find the price of RMB 1999 per year acceptable for profit-making elderly care services.

It is shown in the research that retirement fund and pension fund are respectively the main sources of income of 53.5% and 53.8% of the senior people, followed personal savings (43.1%). Although the mindset of "bringing up sons for a secured life at old age" is deeply rooted, only 39.0% of the respondents have their source of income provided by children, and some elderly people say that they even have to subsidize their children's living. In addition, earnings from investment in stocks and bonds and purchase of insurance and social relief also make up of 4.7% and 0.6% of the elderly's income.

Some citizen told the reporter that after retirement, she helps to look after the grandchildren and buy food and cook for the children. When she is free, she comes out for a walk in the park or dancing at night. She once attended the training courses for elderly, but she had to give up as there were too many people in the class and the schedule was not flexible.

Such a situation is not rare. According to research findings, over 70% of the respondents say that they have not used any elderly care service or product, and only 28.8% of the respondents say that they have used or are using elderly care services or products. Even in an international metropolitan like Guangzhou, the elderly care consumption level is generally quite low.

Nevertheless, the respondents are in fact not very harsh about themselves in consumption after retirements. According to the research findings, nearly 80% of the respondents think that the basic monthly consumption after retirement should not be lower than RMB 800. Among them, a majority (38.9%) think the basic monthly consumption after retirement should not be between RMB 800 and RMB 1599, and 5.0% think such consumption should be RMB 3000 or above. However, less than 40% of the respondents consider it necessary to spend more than RMB 1000 on improvements. Elderly people still prefer to do those free recreational activities such as walking in the park and joining the square dancing.

On the other hand, more and more profit-making elderly care services are available, and respondents consider it "the cheaper the better ". 60% of the respondents find the price of RMB 1999 or lower per year acceptable for profit-making elderly care services, only 6.9% find it acceptable to pay RMB 4000 or more per year for these profit-making services, and no one choose to pay RMB 10000 or more per year (RMB 500 or more each time) for profit-making elderly care services.

The annual spending on elderly care products and services by over 70% of the respondents is less than RMB 10000

A citizen who has used elderly care services or products told the reporter that he is most concerned about price and quality in purchase and has not considered about living in the house for the elderly so far. "After all, I feel happier living with my family members. But, I might consider it when I am older," and he does not plan for attending any elderly training course at all, "It is good enough to walk in the park for free," he said to the reporter.

It is shown in the research that over 70% of the respondents who have used or are using elderly services or products spend less than RMB 10,000 on these services or products annually, and only 8.7% of them spend RMB 16,000 or more on the same.

Unlike young people, 83.7% and 64.3% of the senior people pay attention to quality and price when choosing the supplier of elderly care services or products, indicating that the quality and price are their main focus. 15.4% of the respondents indicate that services and product brand are also factors they need to consider when choosing elderly care products or services. According to the research findings, 20.7% and 17.6% of the respondents consider the environment factor and traffic factor respectively when buying elderly products or services.

Nevertheless, those respondents who have used or are using elderly care consumption services or products generally feel satisfied with the services or products. 53.3% of the respondents say that they are satisfied with the elderly care consumption services or products, while 28.3% of them say that they are very dissatisfied with the elderly care consumption services or products.

Leisure, health regimen, culture and recreation are most popular

According to the result of random interviews, respondents are more inclined to leisure activities, health regimen, culture and recreation. When being asked the question "which elderly care services give you higher quality of life", 56.7% of the respondents respectively answer leisure activities and health regimen and 55.8% of the respondents answer cultural and recreational activities as the main approaches, followed by health care 36.4%), traveling (18.8%), attendance service (15.7%), domestic help services (9.4%) and networking platform (9.4%). In addition, 8.5% and 4.7% of the respondents would like to continue study and make investment for wealth management, indicating the potential of these two areas.

As for elderly care products, the elderly people not only focus on leisure and recreational products, but also pay much attention to health regimen, health care and food safety issues. Over 70% of the respondents believe that the recreational and health care products can make their lives more comfortable, followed by health supplements, food (26.3%), garments (17.6%) and elderly education and training (16.9%).

With regard to the source of information, traditional media and words-of-mouth are still the main sources. However, the emergence of new media is also reflected from the ways of accessing to information by the elderly respondents. 4.4% of the respondents use Microblog or WeChat to access to elderly care consumption services or products, while 2.5% of the respondents obtain elderly care consumption services or products through text messages on the phone.  

Researcher notes

Elderly care market seeing huge potentials

According to research findings, the respondents are not willing to live in elderly care establishments, such as the house for the elderly, and generally the percentage of elderly people who are using elderly care services and products is rather low. Regarding the elderly care consumption market in China, it is on one hand an underdeveloped market, and it is on the other hand a market with huge potentials. The barriers to use the elderly care services and products include the relatively low annual average disposable income for the elderly and the imperfect establishment and management of the elderly consumption market.

At present, significant changes are happening to the home care model in the traditional meaning, so as to make it adaptable to the more and more severe ageing problem. We must be aware that the elderly care structure is currently lagged behind, and we will have to use our great efforts to promote the reform of elderly business, improve the operation and management of elderly care establishments, and keep creating new operating models for these establishments, so as to increase the utility rate of public resources. We may establish a transitional model with "community-based elderly care" as the core, to adapt to the home care model that is undergoing significant changes. Through the support by the government, participation by the society and operations in the market, a new service model has been gradually formed, with home care as the core, community service as the basis, professional service as the support, and daily care, medical and health care, mental comfort as well as culture and recreation for the elderly people at home as the main contents.

Moreover, a new mindset of elderly care in a modern way may be formed to take place of the traditional mindset of "brining up sons for a secured life at old age"; a personal savings system may be established to change the system of elderly care mainly based on retirement fund and pension fund and to reduce the dependence on the nation and the government; and, the future income and expense should be estimated correctly for starting an elderly care plan as early as possible.

A reasonable and sound elderly care system and market building can not only provide professional services to the elderly and make them feel the warmth of the group, combine resources for elderly care, set free the potential productive power, and address people's helpless feel and concern about their parents.

Zeng Yindi

Source: Report of Survey on Status Quo of Elderly Care Consumption in Guangzhou 2015, by the Public Opinions and Information Research Center of Jinan University

Public Opinions and Information Research Center of Jinan University

Team leaders: Zeng Yindi

Team members: Chen Chen, Zhang Tao, Yu Xiaofei, Liu Sijia