[SeniorBiz Insight] Failure Cases in Senior Business: Strategies Designed Without Data

1. Elderly Housing Design That Repeats Past Preferences
2. Failure of "Senior-Only" Products and Services
3. Homogenizing Consumers Based Solely on Age

Professor Kim Jeong-geun of the Department of Silver Industry at Gangnam University is being interviewed by Asia Economy in his office. Photo by Jo Yong-jun jun21@

The year 2025 marks a significant turning point in the population structure of the Republic of Korea. As the population aged 65 and over surpasses 10 million, accounting for more than 20% of the total population, the "senior business" is gaining attention as a blue ocean market. The numbers are truly astonishing.

The first baby boomer generation (born 1955-1963) began entering the age of 65 in 2020 and will reach 75 years old by 2030. The last of the second baby boomer generation (born 1968-1974), those born in 1974, already reached the age of 50 in 2024. By 2030, the population aged 50 and above, including both the first and second baby boomer generations, is expected to account for approximately 48.7% of the total population.

It is rare to see such a large demographic group become the center of the consumer market. However, changes in population structure do not necessarily guarantee the success of senior business. The elderly are not a homogeneous group but a segmented collective with diverse experiences and values. There is no guarantee that the characteristics of the current elderly will apply equally to future elderly populations. Therefore, for a successful senior business, it is essential not just to focus on the large market size but to precisely analyze the characteristics of specific elderly consumer groups and establish data-driven strategies. This article examines cases where senior businesses failed by being confined to the mere size of the elderly population.

1. Elderly Housing Design That Repeats Past Preferences of the Elderly

The most common failure case is designing elderly housing based on the past preference of "wanting to live in nature after retirement." Why did such a strategy emerge? A significant portion of the existing elderly population comes from rural backgrounds and were part of the generation that migrated to cities during the economic development policies of the 1960s and 1970s. They were mainly born before 1950 and experienced the Japanese colonial period and the Korean War, harboring a desire to return to their hometowns in old age. However, as of 2024, they are already over 75 years old and constitute only 9% of the total population.

The first baby boomer generation, which requires new elderly housing, shows different characteristics from the past. According to a 2024 survey by the Architectural Space Research Institute, 65.5% want to spend their old age in their "current home or neighborhood," and even if their health deteriorates and mobility becomes difficult, 41.7% still wish to live in the same area. This shows that as people age, they do not easily leave familiar spaces and neighbors.

Therefore, when planning elderly housing projects, it is necessary to reflect data on the housing preferences of current and future elderly populations rather than simply repeating the preferences of past elderly groups. Otherwise, the business will inevitably be out of touch with market demands.

2. Failure of ‘Senior-Only’ Products and Services

Another failure case is developing products and services labeled as "senior-only."

The core consumers of senior business are the first and second baby boomer generations who grew up during Korea's economic growth period. The consumption expenditure of the population aged 50 and above is expected to reach 1,500 trillion won by 2030, accounting for 60.6% of the total national consumption. However, they tend to avoid defining themselves as "elderly." According to a 2024 government research institute survey, 75.2% of those aged 65 and over do not consider themselves elderly. Therefore, products and services branded as "senior-only" are likely to be rejected by the market. For example, concepts like "healing trips" or "self-exploration trips" are more appropriate than "senior-only travel."

In Japan, foods for elderly people who have difficulty chewing or swallowing are branded not as "foods for the elderly" but as "Universal Design Food (UDF)" or "Smile Care Food." This strategy targets a specific age group while avoiding the term "elderly," attracting a broader consumer base.

3. Homogenizing Consumers Based Solely on Age

The final failure case is homogenizing consumers based solely on age.

Even among people in their 70s, those in their 70s now have completely different generational characteristics compared to those 10 years ago. However, many senior businesses still define consumers based only on age and develop business strategies accordingly, which is a mistake.

For example, the Jitterbug phone launched in the late 2000s in the United States was a super-simple phone with only three buttons, popular among elderly people who avoided complex devices. However, as the baby boomer generation, familiar with IT technology, entered old age, such simple-feature phones were rejected by the market.

For successful senior business, it is essential to consider not just age but also the values, historical experiences, and lifestyles of each generation. Instead of a simple "elderly" strategy, in-depth analysis and customized approaches for segmented consumer groups are indispensable.

Junggeun Kim, Professor, Department of Silver Industry, Gangnam University