An article from Japan Inc. titled The Silver Market Phenomenon discusses the aging and shrinking society and its huge implications for businesses in Japan. It is a great read and I'll summarize the key points fro the article.
- While most accounts of the so-called demographic “problem” deal with the threats posed by declining numbers in terms of the shrinking workforce, the added welfare burden, social conflict and so on, the opportunities of this trend are often neglected - the emergence of new markets, the potential for innovation, the integration of older people into jobs and workplaces, the joy of active aging and varied roles within the society.
- Being relatively well-off, aging Boomers are an attractive and promising yet underdeveloped in terms of product and service offerings. This means that workplaces need to be adapted to fit the needs of an aging workforce.
- Japan is the country most severely affected by this demographic shift and it is the most advanced in terms of product development and innovation. Japanese companies were among the first to react to the challenge of the demographic change and are constantly coming up with product as well as service innovations.Japan offers the opportunity to study the silver market phenomenon and learn from the successes and failures of Japanese pioneer firms. Examples include:
- NTT Docomo’s ‘Raku-Raku’ (Easy- Easy) phone, with its strong emphasis on usability.
- Supportive devices, such as the Robot Suit HAL (Hybrid Assistive Limb). Developed by University of Tsukuba Professor Sankai, it helps elderly people to move their limbs as well as workers to carry heavy weights by wearing a cyborg- type robotic suit.
- The Japanese automotive industry is also busy developing cars for the elderly, placing an emphasis on safety and accessibility.
- Despite what you may read in the popular press and in “marketing to baby boomers” books, the silver market is by no means a homogenous market. Companies should resist the temptation of getting too carried away by people’s agesegment and the over-50 market covers a wide range of different customers and consumers with an equally diverse range of values, attitudes, needs and wants.
- Another aspect to consider is that the silver market is not necessarily restricted to the silver generation only and it is important to remember the powerful concepts of universal and ‘transgenerational’ design. The best products, services and solutions are often those that can be attractive to a variety of customers regardless of their age, physical condition or mental wellbeing. In other words, beware of ageism, think transgenerationally! One of the most prominent and successful examples of this is Nintendo’s game console ‘Wii’ which has helped Nintendo tap into the elderly marketplace.
- The ‘Silver Market Phenomenon’ will not only be an opportunity for business but also an opportunity for innovation and invention, creativity, learning and social response and responsibility. Japan could certainly serve as an interesting role model for the rest of the world.
In a related blog post on this subject, Aging In Place Technology Watch, Laurie M. Orlov had an interesting take on all of this in a post titled Why don't large vendors invest more in technology for seniors?
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