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MODERN GREYS
REDISCOVER THEMSELVES

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OMD Copyright 2017

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FOREWORD
Yuki Xi
The world has never been older—more and more of us are staying alive for much longer. China, too, is experiencing this phenomenon.
As a society that promotes filial piety and the wisdom of the aged, there is an overwhelming perception that
older people in China exist merely as supporters of the next generation and their progeny.
The current generation of 60 plus year olds in China has perhaps been the most affected by China’s history. In their youth, they knew hardship:
experiencing famine, shortages and the Cultural Revolution. They entered the workforce just as China was opening up and had to work
hard to gain new knowledge and ensure their financial stability for their families. Afraid of future shortages, they earned a reputation
for being conservative savers who poured their life energies into their only children—considering little of their needs.
However, these past two decades have brought along many changes to this mindset. With economic growth, they no longer find themselves
in a society dealing with scarcity. Their children have flown the coop. Greys in China now find themselves managing a life of abundance
instead—88% of them have a pension and with only 50% of children still living with parents, their time is now their own. With extra money
in the pocket and all the time to spend, the question they grappling with is how to live the sunset years of their life to the best of their ability.
They now have a chance to refocus on themselves. We found that Greys are now spending their money on enhancing their lives.
They are purchasing higher quality goods, investing in hobbies, and travelling to expand their minds.
They actively try to socialise beyond their families. They are starting to rediscover themselves.
We hope that you too, will rediscover modern Greys as they are here to stay.
Director – Business Intelligence
OMD CHINA

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In China, people shift to
another stage in their 60s
Children move out and
have their own family
Have grandchildren Decline of health
Get special
priorities and care
Retire
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Greys are a growing population segment,
and will soon make up 17% of China
Data Source: http://www.chyxx.com/industry/201603/399487.html
12.0%
1.6
2008
13.1%
1.8
2010
14.3%
1.9
2012
15.5%
2.1
2014
16.6%
2.3
2016
17.2%
2.5
2020
Population of age above 60 (100 million) Percentage of population above 60 (%)

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They are seen as
Grandchild
babysitters
Conservative
and boring
Weak and ill Stingy savers

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But like China, Greys have evolved.
Shedding their tumultuous past,
many of them are embracing the lives
they were unable to live in their youth.

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8
Data sources

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Their youth was marred by hardship
1950s 1966 1976 1986 1996 2006 2016
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• Korean war
• The 1st five-year plan
• Great Leap Forward
• Cultural Revolution
• Launch of 1st Satellite
• President Nixon's visit
• Restoration of national
college entrance exam
• Reform and Opening
• HK & Macau’s return
• Join WTO
• SARS
• Beijing Olympic Games
• The Belt and Road
• SOE reform
• Join APEC
• Wang-Koo talks
Birth/Childhood School Work & Raise child Retire
Poor and restricted Hard work to earn life

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But now have reached a new stability—strong economic growth and
pension policies meaning they have significant disposable income
88% of Greys are pensioned—in urban areas, that increases to 92%. Not only do Chinese elders have
regular basic monthly income, they are spending it too, with most spending 45% of their income.
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Data Source: CNRS 2010.1-2014.12, P60+; 2014 China Longitudinal Aging Social Survey
2,194
RMB
4,721 RMB
2,955
RMB
3,319
RMB
6,160 RMB
7,350 RMB
2010 2012 2014
P60+ Average Monthly Household Income P60+ Average Monthly Household Expense

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They are China’s first generation
of one-child policy parents

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70%
believe children play
an important role in
their care
68%
enjoy spending time
with family
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Their relationship with their children continues
to be important, especially with the loss of
social connections post retirement
Data Source: 2014 China Longitudinal Aging Social Survey & CNRS 2015.1-2015.12 P60+

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But 50% of Greys live without their children

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Loneliness is a big worry

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Greys are enjoying a much longer life
Source: Tencent News
1960 1970 1980 1990 2000 2010 2015
43
59
67 69
72 75 76
Average Life Expectancy

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Richer Lonelier
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As they live longer, the question they
are asking themselves is what next?
Better Life
More free time

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It’s time to
REDISCOVER THEMSELVES
and create a better life
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Greys are using their income
better their lives
Data Source: CNRS 2015.1-2015.12 P60+
86%
like shopping in nice
environment
44%
would pay extra for
quality goods

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Food
Travel
Culture
Leisure
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They are spending more and more of their
money on life enhancements
Data Source: CNRS 2015.1-2015.12, P60+ * Incremental is compared to 2014

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Eating
better
food

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77%
like trying food that is
beneficial for them
56%
believe it is worth paying
more for organic food
49%
like cooking for
themselves
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Data Source: CNRS 2015.1-2015.12, P60+

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Data Source: CNRS 2015.1-2015.12 P60+
They are broadening their tastes in food,
buying beyond traditional Chinese meals
Bottled water
Fresh milk
Cooking oil
Rice
Coarse cereals
Liquid soy milk
Fresh meat
Biscuit
Frozen food
Candy
77.9%
77.6%
77.1%
76.7%
68.3%
64.1%
61.8%
60.2%
60.0%
53.3%
Top 10 Food Category

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88%
Hypermarket
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Data Source: CNRS 2015.1-2015.12 P60+
They still shop in the supermarket
Place to Purchase Food
1%
34%
12%
33%
Convenience StoreDepartment Store Wholesale/Farm market Internet

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Greys are one of the fast
growing groups on e-
Commerce. In 2015, their
spending on-line increased
12.9% compared to 2014.
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Data source: China Daily
e-Commerce is a growing channel for them

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Data Source: CNRS 2015.1-2015.12 P60+
They purchase famous brands
to ensure quality
Preferred BrandsMain factors considered when buying food products
Health
Nutrition
Brand
Safety
Price
Taste
Production date
Promotion
Place produced
Packaging
59%
54%
47%
42%
38%
32%
21%
20%
18%
13%

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Experiencing
more fun

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Greys fill their time with a
plethora of activities
Universities for
elders
Square dancing Hiking Cycling

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499RMB
Sportswear
327RMB
Sports shoes
437RMB
Dancing clothes
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AVERAGE ANNUAL BUDGET
Data Source: CNRS 2015.1-2015.12 P60+; Source: http://www.199it.com 中老年线上舞蹈消费
And they are willing to pay for it

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83%
69%
64%
47%
26%
223
31
27
15
Media Time Spend
TV
Internet
Newsprint
Radio
Magazine
(minutes) Top 5 Channels where they get
new information
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Data Source: CNRS 2015.1-2015.12 P60+
Discovering new trends from
TV, online and print
(Retail store)
(TV)
(Recommend)
(Promotion booklet)
(Newspaper)

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翻开父母的微信联系群，绝对让你傻眼：老同
事群、老同学群、老邻居群，养花有个
群，晚上跳广场舞的还有一个群，在社区里参
加活动还有一个社区群……绝对比你还忙！
那，他们在群里忙些什么？
Average of 60 friends on WeChat
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Data Source: CNRS 2015.1-2015.12 P60+
Social media is now becoming
part of their lives

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Exploring
the big
world

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2.3 times
private travel per year
4days a year spent
on personal travel
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Data Source: CNRS 2015.1-2015.12 P60+

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Greys’ Top 5 Favorite
Domestic Travel
Destination
No.1 Beijing
No.2 Shanghai
No.3 Hangzhou
No.4 Dalian
No.5 Suzhou
Data Source: CNRS 2015.1-2015.12 P60+
They are traveling to their dream locations
NO.1北京
NO.4大连
NO.5苏州
NO.2上海
NO.3杭州
Source: Ctrip data

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> 40%
< 30%
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Data Source: CNRS 2015.1-2015.12 P60+ & Ctrip data
They travel by train and
stay at economy chain hotels

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Travelling is opening up opportunities
for them to socialize
Travel has become one of many leisure
activities Greys’ undertake. With
considerable free time and wealth
amassed, they are becoming traveling
agency’s favorite clients and the bulk of
tourists during in the off-season

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Passionate
Positive
Open
Enjoyable
Modern Greys are
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IMPLICATIONS FOR BRANDS

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The Grey market is here to stay
Today’s Greys are no longer the conservative, money
pinching, grandchild centered most imagine. They are
adventurous, exploratory and willing to try new things
with the disposable income they have.
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Good quality not low price
Low-priced products are no longer the first
choice for Greys—quality is key for them.
Brands who provide good quality products and
build brand trust will win their share of wallet.

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Engage with them by being
helpful and convenient
Brands need to prove they understand the needs of
Greys and connect with them beyond trite content
engagements with practical products and services
that can help them continue to be independent in
their daily lives.

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Leverage TV and social media to build
brand awareness and reputation
Greys continue to be heavy TV viewers, brands that
are looking to build coverage quickly should invest in
this medium. Beyond TV, with the growth of social
media as a communications channel for them, brands
can build relationships with Greys.

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CONTACT US
Bhasker Jaiswal
Bhasker.Jaiswal@omd.com
MANAGING PARTNER
BUSINESS INTELLIGENCE
Jeanette Phang
Jeanette.Phang@omd.com
BUSINESS DIRECTOR
BUSINESS INTELLIGENCE
Yuki Xi
Yuki.Xi@omd.com
DIRECTOR
BUSINESS INTELLIGENCE
MODERN GREYS
REDISCOVER THEMSELVES