Turning Silver into Retail Gold - Whitepaper

TURNING
SILVER
INTO
RETAIL
GOLD
MARCH 2016

SINGAPORE
CONSUMERS ABOVE 55
YEARS OLD ARE THE…
10 years
years
years
years
years
20
30
40
50
PIONEER
GENERATION
SILENT
GENERATION
SILVER
GENERATION

1Copyright © 2016 The Nielsen Company
REGARDLESS WHAT YOU
CALL THEM, THEY…
JUST 3 REASONS WHY YOU
SHOULD NOT NEGLECT
THIS GENERATION…..
AND ARE POSSIBLY YOUR
BIGGEST SPENDERS
HAVE DEEPER POCKETS
ARE WISER CONSUMERS

2 TURNING SILVER INTO RETAIL GOLD | MARCH 2016
WELCOME
Singapore is one of the “oldest” nations in Asia Pacific and
the silver generation accounts for 40% of the nation’s grocery
shopping, making it an extremely important segment for
the Consumer Packaged Goods (CPG) industry. On the
other hand, shopping environments and CPG products are
generally not designed with the elderly in mind, so their needs
are not met. This represents golden opportunities for both
manufacturers and retailers.
At Nielsen, we have identified approaches which have worked.
There is no secret formula when it comes to innovating and
catering to the silver generation. Manufacturers should look
to adapting packaging and product innovation to meet the
specific requirements of the aging consumers. Products
should be customized to satisfy their special nutritional and
other aging-related needs. Product packaging can be adapted
to ease their purchasing moments and product navigation.
Retailers should also adapt the four Ps – People, Place,
Promotion and Product, based on the desired needs to
encourage a conducive shopping environment which is
attractive to these mature consumers. Providing delivery
options will further sweeten the deal and win their
loyalty and wallets.
JOAN KOH
MANAGING DIRECTOR,
SINGAPORE AND MALAYSIA
JOAN KOH

Mrs Tan is a retiree at the age of 62. She and her husband live with
her daughter, son-in-law and their children. Due to her daughter’s busy
lifestyle, they rely on her to do the household groceries. With more free time
on her hands, grocery shopping has gradually become a hobby of hers, as
she enjoys spending time at the supermarkets browsing through the aisles
Mrs Tan makes a special effort to get to the supermarket on days with
Pioneer Generation discounts as she tries to save money for the household.
When shopping, she seeks out specialised dairy products that could help
her osteoporosis condition but usually she has to settle with generic high
calcium milk. While there are many promotions available, she finds it
difficult to understand what the offer is as she is not fluent in English.
Pioneer
Generation
discounts
INTRODUCTION

GENERATION VIP
Mrs Tan is not alone in her grocery shopping habits. The silver generation
plays an extremely important role in Singapore’s Consumer Packaged Goods
(CPG) industry. Currently consumers aged 55 years and above account for
40% of household grocery shopping for the nation1
and they are spending
more on groceries each year – growing at 18% while the younger generations
spend less.
With Singapore being one of the “oldest” nations in Asia Pacific, and the
65-year-olds projected to grow to 24% in 20302
, the importance of the silver
generation has been recognized by the Singapore government as seen from
the launch of the Pioneer Generation initiative in 2015 and the recently
unveiled $3 billion Action Plan for Successful Ageing3
. However, while the
growing importance of this generation is starting to be recognized, the CPG
industry at large continues to focus on the young and family demographics.
The silver generation faces a number of challenges when navigating the retail
landscape in search for products and services that meet their specific needs.
Nielsen undertook a specific study of the mature market to understand these
challenges and discover if their needs were being met by manufacturers and
retailers today.
8%
2004
12%
2014
24%
2030
forecasted

UNMET
NEEDS FOR
AN OLDER
CROWD

PRODUCT RELATED
UNMET
NEEDS
Products with clearly
labelled nutritional
information
CALORIES
PROTEIN
SUGAR
SODIUM
TEA
**g
**g
**g
**g
咖啡
Products with
easy-to-read
labels
Local language
on packaging
67%
44%
30%

PRODUCT RELATED
FULFILLED
NEEDS
MUST-HAVES
NICE-TO-HAVE
Product availability in the
frequented channels
Healthier food options
Products with easy-to-use
product packages
Products with easy-to-
open product packages
Food products that
meet my special
nutritional diet needs
Personal care
products that meet
my special needs
Foods with
smaller-sized
portion
46%
38%
46%

UNMET
NEEDS
FULFILLED
NEEDS
SHOPPING ENVIRONMENT
SHOPPING ENVIRONMENT
Ample lighting
Promotional posters
in local language
Wheelchair-friendly
facilities
Wide range of product
categories to meet
elderly needs
Attentive staff
40%
48%
63%
48%

Staff that communicate
in local languages
Large print
signage/posters
MUST-HAVES
NICE-TO-HAVE
Free delivery
and online retail
options
Aisles dedicated
to aging-needs
products
Promotions
that are geared
towards smaller
families
Benches
to sit down
43%
65%
72%
36%

UNMET
NEEDS
F U L F I L L E D N E E D S

Trouble finding food products to meet
specific dietary requirements.
While there are many healthy food
alternatives in the market, more than one
in three (38%) elderly consumers have
trouble finding food products that meet
their special dietary needs. The Singapore
Health Promotion Board has identified some
of the common problems faced by the silver
generation, including lactose intolerance,
difficulty in chewing, and a poor appetite.
With a limited range of offerings that cater
specifically to these needs, many elderly
have to settle with alternatives like baby
foods, or general food products that do
not address their actual issues.
Lack of innovation in personal care products
for the aging consumer.
As we age, our needs evolve – our hair
becomes thinner and more brittle; our skin is
drier and less elastic. While hair and beauty
products exist in the market for specific
needs, there is little focus on how these
needs differ for the elderly consumer.
Product packaging and labelling are not
“elderly-friendly”.
Product packaging is another area that
represents a challenge to many elderly
consumers. Small print and lack of clarity
on nutritional information are cited as some
of the common challenges that the elderly
have when purchasing consumer packaged
goods. Adjusting these features would make
it easier for senior grocery buyers to navigate
through the wide array of products and help
improve their purchasing journey.
Retail environment is not “elderly-friendly”.
Age takes a toll on the physical body, and
mobility issues become a daily concern
for many elderly. Lack of elderly-friendly
facilities (e.g. benches for resting) is one
of the common problems faced. Like Mrs
Tan, many elderly consumers may not
understand promotional communications
written in English and therefore, assistance
or translation in their known language is
required. Unattentive retail staff is also
a challenge in many retail environment.
CHALLENGES ABOUND FOR THE SILVER GENERATION,
AS THEY SEEK PRODUCTS AND SERVICES THAT MEET THEIR
REQUIREMENTS. THESE INCLUDE:

INNOVATE TO WIN
HOW TO WIN THE HEARTS
AND CARTS OF THE
SILVER GENERATION
WHEN IT COMES TO ADVERTISING, SPEAK THEIR L ANGUAGE
GO FARTHER WITH THE SHOPPING CART

INNOVATE
TO WIN
Innovation opportunities lie within many product categories, but those
that cater specifically to senior consumers’ unmet needs are most likely
to succeed.
It is worth noting, that not all purchasing is done for an elderly end
consumer. Often, as with the case of Mrs Tan, they may be buying for the
broader household group. For these categories, manufacturers should
focus more on ease of purchasing and product navigation rather than
specific product benefits.

SPOTLIGHT ON: PACKAGED FOODS & DRINKS
Senior grocery shoppers account for 51% of sales in the Health Supplement
categories. Examples include Chinese herbs & tonics, multi-vitamins & minerals,
and Essence of Chicken, which are all supplements for the elderly’s health
and wellbeing. Other “healthy” categories like soya milk, yogurt, hi-fibre and
wholemeal breads are also becoming popular as awareness of healthy eating
grows among senior shoppers in Singapore.
Traditional formats, such as Bar Soap and Roast/Ground Coffee have a larger
following from senior shoppers (52%), probably due to their familiarity with
traditional formats. These tried-and-tested formats are more important to the
senior shopper than other consumer groups.
Ready-to-eat items such as cakes and pastries are other examples of
categories that are more likely to be bought by senior shoppers (52%).
These categories, along with a few other food categories including bread, buns,
and biscuits are also growing fast among the elderly shoppers, who look for
convenience or “no cooking options” as well as satisfying sweet cravings
as their taste buds change.
While these categories currently satisfy the silver generation, opportunities
abound for companies who can address the unmet needs of these elderly
consumers. Innovation in food categories is required to address specific
aliments such as lactose intolerance, difficulty in chewing, and a poor appetite5
.
Manufacturers that take into account of these requirements and offer nutritional
healthy options are destined to win.
Categories which
the elderly shopper
contributes to the
majority of category
sales4
:
• Health Supplement
categories
• Traditional formats
within categories
• Ready-to-eat food
categories
51% 52% 52%

SPOTLIGHT ON: PERSONAL CARE
Personal care products that specifically target and
address elderly needs are also an area of opportunity.
For centuries, marketing of health and beauty categories
has focused on younger audiences, but whilst not an easy
feat, those that include and innovate to the mature audience
are ahead of the pack! While there is no secret formula to
success, Nielsen has observed some specific examples
that have worked.
Specialized solution that meets specific aging needs
featuring a mature talent – Pantene Japan
Pantene Extra Volume is a range of hair care products
that caters to the mature audience in Japan. Before
Pantene Extra Volume was launched, its predecessor
Pantene Natural Care was positioned as offering fullness
and life to hair through natural ingredients. The relaunch
focused on mature hair that is prone to volume loss
and requires a specialized solution to boost volume and
the communication featured a mature model. Since the
relaunch, sales have grown by +90% in the first year6
. This
example demonstrates that the brand understands mature
consumers’ specific hair care needs and featuring a mature
model in the ad provides the authenticity that makes the
product more relatable to a mature audience.

Nostalgic packaging – Bigen Speedy Singapore
Hoyu, the Japanese hair coloring giant showcased an alternative
route to appeal to gray-coverage users. Bigen Speedy Hair Color
Conditioner is a popular hair colorant sold in Singapore. Its colorant
promises to cover grey hair in 5 minutes with the applicator comb.
Instead of featuring older talents, this product uses an eye-catching
and nostalgic-reminiscent packaging that resonates with mature
audiences, achieving a stable 14% market share in the Hair Colorant
category in Singapore7
.
Counter-stereotypical approach – Hoyu Men’s Bigen Japan
Another innovative approach from Hoyu showcased the idea of
“embracing aging” rather than “chasing youth”. Hoyu Men’s Bigen
Grey Hair is a hair colorant manufactured by Hoyu and sold in Japan.
Instead of covering grey hair with black, this product leaves the
impression of grey and provides a natural-looking, even-toned and
“attractive grey” hair. It endorses the belief that aging is nothing to
be ashamed of; and as a society we should embrace and enjoy aging.
While it is too early to see if it has been successful, it showcases
a liberating approach from the youth stereotypes of the past.
Capturing the affluent silver generation
Specialized premium innovation that caters to the more
affluent silver generation provides an even greater opportunity to
manufacturers. To effectively target the affluent mature shoppers,
ensure ready distribution in Convenience stores, Personal care stores
and Western Pharmacies as these channels are frequented more
by the affluent older consumers. Additionally, engage the affluent
mature audience online as they consume more digital content
than the less-affluent.
1 min 2 min 3 min 4 min 5 min

WHEN IT COMES
TO ADVERTISING,
SPEAK THEIR
L ANGUAGE
Mature brains are different from their younger counterparts in many ways, including how
they react to advertising messages. Nielsen Consumer Neuroscience sheds insights on how
to communicate effectively with the elderly.
Focus on the positive. With age, comes wisdom and experience. Recognize the strengths
of older consumers in advertising, instead of the limitations. Mature brains tend to avoid
negative emotions while they are on the constant look out for positive emotions.
Familiar settings. Engage with the mature brains more easily than foreign and quirky
settings (e.g. robots, animals talking). As we age, our ability to process new information
starts to decline as certain networks in the brain become less flexible. Familiar settings in
advertisements make it easier for the mature brain to process information.
Simple is best. Use clean, clutter-free messaging in advertisements. The ability to retain
and act on multiple pieces of information declines as we age. Distraction and complex story
lines impair attention and memory with the potential for the key message to be lost. Using
a simple, clutter-free message helps the mature brain to navigate and recall advertising
far better.

GO FARTHER WITH
THE SHOPPING CART
People – Improve attentiveness of staff
“Attentive staff” is considered highly important by the elderly consumers, yet
difficult to come by. Few retail environments today have sufficient staff to
assist shoppers in need. In this new digital age of automation and self-service,
the mature shopper appreciates the personal touch and assistance that only
dedicated staff can bring. Stores that embrace this traditional service delivery
will win the “hearts” of the silver generation.
Place – Install benches in stores
Senior shoppers tire more easily, and often require a short rest during shopping
trips. Many retailers today do not have adequate benches in their stores to
address the mobility issues of this growing shopper demographic. Retailers that
provide “rest spots” with comfortable seats and wheelchair-friendly facilities
will enable mature shoppers to spend more time in store. For example, in the
United States, an increasing number of retail outlets are providing in-store
cafés which allow shoppers to rest and get recharged before continuing their
shopping journey. These retailers know that a “well-rested” shopper will stay
in store longer and have a greater likelihood of increasing their expenditure
in store!
Within the retail environment, there are many potential minefields for the mature consumers.
Retailers that address the unmet needs of the silver generation and tailor their service offering to this
growing and influential segment will win their loyalty and wallets.

Promotion – Offer promotions in local languages & for smaller families
For many elderly consumers in Singapore, English may not be their first
language and as people age, they often revert back to what they know best.
Providing options to communicate promotional offers/displays in local languages
would improve understanding and effectiveness. With technology becoming
an increasing reality in many retail environments, explaining promotions and
offerings in local languages is only a “touch screen” away.
Although many elderly in Singapore today reside with family members, one
in four still lives alone or with their spouse. In today’s retail environment, many
promotional offers target bulk purchases which may not be relevant to smaller
households. Retailers should consider offering cross-category bundling, total
dollar store savings, or promotions on smaller pack sizes to appeal to smaller
elderly households.
Product – Meet demand for aging related products
The silver generation can have specific needs and often mobility issues.
Having a dedicated product section or aisle would certainly be more convenient
for them. Infants make up 3% of the Singapore population8
, and have their
dedicated aisles in supermarkets, so why not do the same for the elderly
consumers who are four times more? For example, retailers can consider setting
up a special aisle with products suitable for the elderly consumers with common
health issues such as diabetes, osteoporosis and heart disease.
Delivery and online shopping
Offering free delivery unlocks the option of bulk buying for the elderly, as they
are no longer limited by what they can physically carry home. By lowering the
minimum spend for the elderly to qualify for free delivery, retailers, especially
larger format stores can win their loyalty and encourage them to spend more.
While still in its infancy, online shopping is fast becoming a reality for
tomorrow. Close to four in five9
(78%) elderly consumers access the internet
today, although online grocery shopping is not yet common to the silver
generation. Retailers need to build trust among these elderly shoppers with
regards to payment options as well as to help them master online shopping
through easy, step-by-step user guide on the e-commerce websites.

OLD IS GOLD
The world’s oldest population, Japan, is blazing the trail in actively exploring opportunities within
the silver segment. Aeon, Japan’s largest supermarket chain, recognizes the elderly consumers as
an extremely important source of growing revenue for the future and has taken direct actions to
respond to the needs of their senior shoppers.
Welcome to Aeon Mall Funabashi, a shopping mall specifically targeted at the silver segment.
Besides shopping, senior citizens can access medical facilities, partake in one of the many
leisure activities ranging from calligraphy lessons to hula dancing and even find love through the
shopping centre’s “Begins Partner” programme. Aeon launched a trial, round-trip free bus service
to transport people from their homes to the local Aeon supermarket. This initiative has been
well received as it not only reduces the physical hassle of getting to the shops for the elderly, but
has also become an important social networking experience as people anticipate meeting and
interacting with their neighbors during the bus ride. Aeon has indicated that the financial services
partner it collaborates with in their elderly-friendly mall has seen 20% more consultations as
compared to a conventional bank branch.
With one in four Singaporeans falling into this demographic by 2030, Singaporean retailers can look
to Aeon’s playbook, and continue to explore innovative ways to serve the rising silver generation.

Mrs Tan goes grocery shopping and is greeted by a shop assistant. With the assistant’s
help, she finds the specialized dairy drink easily, which helps keep her osteoporosis
condition under control. She reads the large print label for nutritional content and taps
the in-store screen to view the promotional offer in her preferred language. She takes
a short rest in the supermarket café before finishing her shopping. With the free home
delivery, she is able to stock up and take advantage of a number of promotional offers
without having to worry about how she will get them home. This is Mrs Tan’s future –
the opportunity is ripe for manufacturers and retailers to embrace what lies ahead.
Nielsen surveyed 300 respondents in an island-wide study. The sample is limited
to those above the age of 55 and has quotas based on gender and ethnicity to
ensure sufficient representation of the various demographics. The study aims to
understand the sentiments of elderly regarding the retail environment and products
attributes in Singapore, while giving insights into their shopping behaviour.
SINGAPORE IN 2020
METHODOLOGY

Joan Koh is the Managing Director of Nielsen Singapore and Malaysia, leading
the entire portfolio of the Company’s business including Retail Measurement,
Consumer Insights, Media, Innovation and Marketing Effectiveness. She
has close to 20 years of experience in the information and insights industry,
assuming roles across various industry verticals – FMCG, Financial Services
and Retailers.
Joan was appointed to Managing Director, Singapore in 2010 where she has
successfully brought about a number of significant developments in the
business. Under Joan’s leadership, Nielsen Singapore has seen remarkable
growth of multi-country business – better helping our clients getting connected
and closer to their consumers. She has invested and effectively leveraged on
talent diversity to give Nielsen Singapore the edge to become a successful
international/regional research hub.
Joan also assumes Presidency of Market Research Society of Singapore (MRSS)
and is an experienced speaker on consumer insights and market trends.
ABOUT THE AUTHOR
JOAN KOH
MANAGING DIRECTOR,
SINGAPORE AND MALAYSIA

EDITORIAL TEAM
SPECIAL THANKS
ANIL ANTONY | RAPHAEL PEREDA | ABHINAV MAHESHWARI
BINOJ GOPAKUMARAN NAIR | ANTHONY CHUA | NICOLE CORBETT | RYP YONG | AKI TEOH
CECILIA LV XI
SENIOR MANAGER
INNOVATION PRACTICE
LI YU LIN
MANAGER
CONSUMER INSIGHTS
TEO JINGSHENG
EXECUTIVE
CONSUMER INSIGHTS
REBEKAH KOH
SENIOR EXECUTIVE
RETAIL INSIGHTS
STANLEY NAM
ASSOCIATE DIRECTOR,
MARKETING AND
COMMUNICATIONS
GABRIEL KHOO
CREATIVE LEAD

FOOTNOTES
1. Based on Nielsen Singapore HomeScan Panel year ending June 2015
2. http://population.sg/whitepaper/resource-files/population-white-paper.
pdf http://www.straitstimes.com/singapore/singapores-population-
could-hit-69m-by-2030-0 The official forecast from Singapore
Government for elderly citizen in 2030 is done for people aged 65 and
above; however in this paper we define the silver generation as people
aged 55 and above
3. Straits Times article:
http://www.straitstimes.com/singapore/singaporeans-aged-65-and-
older-form-131-per-cent-of-citizen-population-as-society?xtor=CS3-18
4. Based on Nielsen Singapore HomeScan Panel year ending June 2015
5. Health Promotion Board, Dietary Guidelines for Older Adults:
http://www.hpb.gov.sg/HOPPortal/health-article/HPB042201
6. Based on Intage Data for Japan hair care category, year ending June
2015 vs. year ending June 2014 for the volume sales of Pantene Extra
Volume/Natural Care
7. Based on Nielsen Retail Measurement Services Data of Singapore hair
colorant category, for year ending July 2015 for the unit sales market
share of Bigen Speedy
8. Infants are defined as children under the age of 2. Singstats, Census of
Population 2010
9. http://www.straitstimes.com/singapore/majority-of-singapore-seniors-
are-web-savvy-says-global-study

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ABOUT NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global performance management
company that provides a comprehensive understanding of what consumers
Watch and Buy. Nielsen’s Watch segment provides media and advertising
clients with Total Audience measurement services across all devices where
content — video, audio and text — is consumed. The Buy segment offers
consumer packaged goods manufacturers and retailers the industry’s only
global view of retail performance measurement. By integrating information
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more information, visit visit www.nielsen.com/apac.
Copyright © 2016 The Nielsen Company. All rights reserved. Nielsen and the
Nielsen logo are trademarks or registered trademarks of CZT/ACN Trade-
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trademarks of their respective companies. 16/9565

Turning Silver into Retail Gold - Whitepaper

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