Provided by BBVA
The BBVA initiative ‘Knowledge Sharing’ discovers the opportunities that the silver economy, made up of the social group with the greatest purchasing power – the population aged 55 and over – presents to businesses.
A “silver economy” promotes economic development thanks to a group with high purchasing power.
Spain is experiencing a demographic change and its social and economic situation is changing. Currently, more than 33% of the population is over the age of 55, but by 2030 this number is expected to exceed 40%, or approximately 18 million people. This situation places Spain in second place among the OECD countries with the highest proportion of the elderly population.
This demographic is not only large in size, but also plays an important role in Spain’s economy. According to research by the Agenomics Research Center of the Mapfre Foundation, people over 55 already account for 60% of consumer spending, with a major impact on sectors such as tourism, food, pharmacy, banking and insurance. Their loyalty to brands in both physical and digital environments, combined with their significant purchasing power, makes them a strategic market.
In this context, the so-called silver economy arises, encompassing all economic activities, products and services designed to meet the needs and preferences of older people. This sector presents a unique opportunity for companies that know how to effectively adapt and respond to the demands of this sector.
The real challenge lies in developing personalized products and services that meet the unique expectations and requirements of older adults. Businesses that are able to understand and address these needs will be in a position to take full advantage of the potential of the silver economy and contribute to the sustainable development of their countries.
Even though this group did not grow up with technology, they have embraced the digital world with ease. 70% think it’s easy to buy online and regularly buy from platforms they trust. This challenges the idea that older people are technology-shy.
Additionally, the sociodemographic profile of this generation has evolved significantly, leading to improved quality of life, new leisure habits, second careers, and increased demand for personalized products and services. Sectors such as health, finance, technology, fashion, mobility, housing, culture, leisure and travel see opportunities for innovation and growth in this sector.
“The new senior demographic is a highly attractive and growing segment seeking personalization, service, trust and safety.”
david hernandez
CEO and Founder of Pangea
Pangea is a travel agency with over 10 years of experience specializing in personalization, with a significant increase in sales to people aged 55 and over. Because this segment has purchasing power and an increasing interest in culture and quality leisure, the company is leveraging its online shopping preferences and the convenience of closed travel packages to create trips designed specifically for this segment. We planned.
“New older adults have more free time, are able to travel more frequently, and are increasingly socio-culturally sophisticated. It’s a growth area,” said David Hernandez, CEO and founder of Pangea. He added: “This is an expanding blue ocean, and there will be great opportunities for companies who know how to take advantage of it.”
“It is imperative that companies develop value propositions that respond to real needs and align with the preferences of older adults.”
Joseph of John Savoy
President and Representative Director of Silver Economy Group
José de Juan Savoya, general director of Silver Economy Group, which specializes in advising companies and organizations in the senior market, emphasizes the importance of thoroughly understanding this segment. The expert says, “It is imperative that companies develop value propositions that truly respond to the unique needs and preferences of older adults.” Additionally, this group is highly diverse and emphasizes the need to avoid personal biases and assumptions about the preferences of this group, as they prioritize quality and customer service over price.
“Older adults are also going digital, and we must provide them with the best experience and personal advice when they need it.”
Marta Alkaiz
BBVA Spain Head of Design
When targeting the silver segment, Marta Alcaniz, Head of Design at BBVA Spain, recommends that companies design intuitive and secure digital environments and combine digital with personalized treatment. . “We have a group of older people aged between 60 and 70 who are very comfortable with the digital environment. We want to give them the best experience at the right time and the option to receive personal advice when they need it. ,” says Alcanis.
As a result of his own experience, David Hernandez added: Omnichannel is the future. We must be able to effectively manage all available channels and adapt to our clients’ needs. Simplicity is key. ”
In the near future, the profile of older adults with significant purchasing power, staying active, enjoying leisure time, and using new technologies will emerge. This segment wants high-quality, personalized products and great service throughout the purchasing process. This is an important pillar of the market in the short and medium term and a valuable opportunity for companies. The real challenge is balancing the ease of use and speed afforded by new technology with the personalized attention that keeps these customers loyal.
credit
Coordination: Elvira Llopato de Mercader | Producer: Edición Clariana | Editor: Gemma Martí | Design: Marta Sagara | Layout: Enric Abad | Photography and Video: BBVA and Getty | Brand Love Project. Godo Vertical Media
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2024/09/17 05:50 2024/09/17 08:43 Updated
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