IT’S NOT JUST in Japan where they eat sushi and seaweeds that the number of people in their eighties have gone up. (Japan’s average life expectancy is still the highest at 85 years old.) Life expectancy here in our country is a lot lower but has increased from 71.41 in 2021 to 71.79 in 2024.
Aren’t there more old people, with walking sticks or in wheelchairs accompanied by caregivers with flawless skin, getting more noticeable in our malls? Under this senior category is a smaller niche.
There is the segment of the elderly cohort that has high disposable income. Old people with money (OPM) may not qualify for a separate party-list category. (Anyway, isn’t there already a general listing for senior citizens?) Maybe old people with money are not a marginalized sector. But the party-list system has gone beyond that stifling definition. (But that’s another subject.)
Marketers should pay attention to this “gray market.” (Dyed hair does not disqualify inclusion here.) “Old” here refers to those over 60 years old who get discounts as senior citizens for coffee and eyeglasses. And money in this case covers discretionary income, beyond meals, electric bills, and vitamins.
There are some challenges for marketers targeting the OPMs.
Their closets are full (if you buy more shirts you must get rid of the same number now in the closet — this is the shrill reminder given by their partners who also need the space. And so they no longer buy shirts, jackets, or travel overcoats unless they underwent a liposuction requiring a “wardrobe makeover.” Still, small items like watches and car keys for electric cars can still sneak through.
Recent legislation has granted more benefits to the elderly. Does this mean that discounted-priced customers are not too welcome in drug stores and restaurants? Are they lumped with fire inspectors who walk into an establishment and expect to be given free meals? Even with their discounts however, the seniors order a lot — can I see your dessert menu?
OPMs too are often accompanied by their offspring (let’s take Mom and Dad out) when in the mall so they bring along undiscounted purchasing power.
But here are the niches in the gray market.
Wellness and healthcare at this age is a necessity. Some funds need to be set aside for “elective surgery.” Hospitalization can set back the retirement fund, even with health insurance and what it does not cover. This can also cover non-emergency treatments like stem cell treatments, and cosmetic lifts beyond removal of skin tags and warts.
Here too can be included pampering activities like foot massages (no happy endings needed) and the weekly ballroom dancing that comes with a regular dance instructor. More au courant is yoga, pole dancing, or, for the less nimble, tai chi — push the mountain; part the clouds.
Bucket list fulfillment comes with age. This includes trips to foreign shrines in Barcelona or Compostela with the amenities for the least amount of walking. (Wheelchairs can be rented.)
Another surprising product that targets the OPMs is the alternative lifestyle. One example is moving from the grand mansion to a condo unit with a full-service infrastructure of maid service and catered meals. This is for “empty nesters” who may need handrails for every move.
Can we classify “escort service” as a niche for the gray market. In this category are caregivers who accompany the elderly of both sexes, pushing the wheelchair or assisting with meals. Even exclusive clubs who keep security staff outside allow caregivers to sit at the tables.
Are slim companions with flawless skin who provide conversation and fetch popcorn for movie screenings part of this segment?
The gray market is curated for taste and purchasing power. The products and services in this category are not intended to have a long warranty period and have a narrow target market based on personal marketing rather than an online app. They belong to the classification of instant gratification.
Old people with money are increasing in number and purchasing power. Still, the reason they attract any attention at all is never about their age, but their money and how willingly they part with it.
Anyway, the last expense for this group involves a decision maker other than the consumer. (Do you want to check the urns?)
Tony Samson is chairman and CEO of TOUCH xda
