Sri Lanka and its market segments

1. Just 8 years time, 1 out of 5 Sri Lankans would be over 60 years. Marketers, are you ready
to serve this mega trend?
By Maxwell Ranasinghe
A mega trend is a major movement, pattern or trend emerging in the macroenvironment; an
emerging force likely to have a significant impact on the kinds of products consumers will wish to
buy in the foreseeable future. They appear in global level and with slight variations in individual
countries, the trend would continue in the same direction. (Dufva, 2020)
Mega trends
Megatrends include macro-economic forces that impact business, economy, society, cultures, and
personal lives, defining our future world. Megatrends transcend geopolitical and physical
boundaries. Current Megatrends include: Global Warming and climate change; Human longevity
associated demographic transition, scarcity of vital resources such as food, water, and land, global
population growth, Urbanisation, Digitisation and robotics, Artificial Intelligence, shifts in
geopolitical power; and Global Pandemics (Helps 2016)
Disruptive Approach
We have experienced that we cannot solve problems associated with these mega trends in 21st
Century with the approaches and the tools developed in the 19th and 20th Century. I argue that
fundamentally disruptive approaches should be used to address them. The issues that arise because
of these mega trends cannot be solved taking one or two mega trends in isolation. A systemic
problem-solving approach needs to be adopted. A change to the structure and seen the issue in a
wider lens and finding solutions through an interdisciplinary approach is much advocated. I also
argue that older generation find difficult to find answers to them and the new generation, “the
digital natives” may hold the key. It is instinctive for this generation to use empirical data and
sophisticated algorithms to assess situations, decisions, challenges, and choices. They have
unprecedented access to data, intelligence, and applied knowledge their parents would probably
not have dreamt of.
Demographic transition
Since this article is not meant for the discussion of the big picture of the political, socio economic
issues in general associated with mega trends, we will attempt to discuss the marketer’s point of
view in getting adjusted to the changes and exploiting the opportunities because of the mega trends
taking place. We would narrow down the topic by taking one important mega trend, the
demographic transition in the world and Sri Lanka. We will explore what is the value of the market
of this segment, what innovative ideas and products needed to be developed and how could the
gaps be filled in the marketplace by the marketers.
The projections are real

2. According to studies, the aging population has become a mega trend, and has led to global
demographic shifts (Cheal, 2000). This has been one of the most important societal developments
of the 21st century. Between 2015 and 2030, the global population of people aged 60 and over is
expected to increase by 56 percent, from 901 million to 1.4 billion. Besides, by 2050, the global
population of older people would have more than doubled, hitting almost 2.1 billion. It is predicted
that by 2030, one out of every six people will be over the age of 60 (Bolwell,2017). The United
Nations (2017) states that the globe's older population aged over 80 years is expected to rise by
around threefold to over the present level by 2050. In 2017 there were 137 Million people older
than 80 years, by 2050 it is anticipated to increase to 425 million. Furthermore, it is analyzed that
in the high-income economies, the ageing phenomenon is more advanced. According to 2020
figures, Japan has the world's highest elderly community, with 28.2 percent of the population aged
65 or over. Followed by Italy with 22.8 percent, and third Finland with 21.9 percent (Population
Reference Bureau, 2020).
Where Sri Lanka stands
Sri Lanka’s experience isn’t unusual in Asia and the Pacific. The graph below illustrates the trend
how the Sri Lanka’s elderly population is increasing.
Source: Kuma (2017)
In just mere 8 years, one out of five would be a person in the category of over 60 years of age.
Further, if you study the gap well, you will observe from 2040, the over 65 years age bracket is
getting expanded markedly and over 40% of the population would be over the age of 60 years by

3. 2100. More importantly, if you observe the two top sections of the columns, light blue and green
which denote over 75 years of age is expanding disproportionately to other older population.
The implications of the aging population for marketers
An aging population has several implications. These include potentially adverse impacts on growth
from a falling share of the working-age population; an effect on savings as consumption and
savings behavior vary over the life cycle of an individual; and fiscal implications as pension costs
rise, along with the cost of providing health and long-term care for the elderly. The demand for
goods and services from this segment would be different from other segments of the population
and it be a major part the market. However, we do not see a proper plan by the government to face
this status. Even the private sector seems to have not taken this important future change in their
customer profile.
Need for innovations
The entrepreneurs need to come up with efficient implementation of innovative ideas to deliver
new and suitable goods and services to changing needs of the impending market to have a
competitive advantage over the others and most significantly to increase profitability. According
to the economist Joseph Schumpeter, Entrepreneurs generate value by leveraging a new innovation
or, more broadly, an untested technical possibility for manufacturing a novel item or developing
an existing one in a new way, or by opening up a new source of supply of goods or a new outlet
for items (Śledzik,2013).Is our corporate sector planning and working on these lines to face the
future changes in the market place or commercial businesses are unprepared to meet the needs of
aging consumers.
Size of the market
The corporate sector needs to study the market dynamics in terms of the potential size, growth,
and power of the older adult market taking into consideration population aging as an opportunity
for business expansion. This analysis should not be restricted only to Sri Lanka and the mega trend
of aged population would be all over the developed and developing world. It is already a reality in
many countries. By 2030, 21 more countries will join the ranks of the super-aged, including the
APEC member economies of Canada, Hong Kong, New Zealand, Singapore, the Republic of
Korea, and the U.S. Japan’s older adult population will continue to swell, reaching an estimated
30% aged 65 or older by 2030; Hong Kong will be close behind at 29% of their population aged
65 or older by 2030. Certainly, there is no doubt about the power of the older adult market, with
older adults projected to spend $15 trillion annually by 2020 (Content Strategist, 2014). Further,
those over aged 60 years will generate more than one third of global consumption growth (Dobbs
and Woetzel, 2016) and more than half of all growth in urban consumption in the coming years
(McKinney & Company podcast, 2016) We are in a globalised world and we not only serve local
markets but also the international markets. As such, we need to take this global mega trend into
consideration very seriously as products and services needed by our export market needs would
change dramatically. Therefore, the companies likely to be successful in future should strive hard
to understand the complex needs and wants of the older population.
What to offer

4. There could be many products and services required for the aging population.
Major areas to consider in developing products and services for this segment would be in the health
sector, nursing and caregiving, retirement homes, home deliveries, nutritional products, family and
community relationship, shopping experience, access to shopping and special aids and devices in
shopping malls and supermarket for adults, finance, insurance, mobility, cosmetics, fitness, online
marketing, travel and tourism, safety and security, affordable housing, IT and robotics, religious
services, entertainment specially designed with older population in mind.
Conclusion
Contrary to the popular opinion that chemically laden food after the green revolution has reduced the life
span of people, innovations in medicines and improved health care systems have made people live longer.
The older segment of the market is growing, and they have different needs that are not served well as in
the other segments and it is going to be a substantial part of the market. Marketers will be able to serve
this segment better when they understand needs and the behavior of this segment well. improved and
innovative products to suit the burgeoning market. On the other hand, the government should have
investigated this phenomenon seriously and have a national policy in supporting the special requirements
of this segment. Further, the in the current business model, the government should encourage private
public partnership to develop investments to serve this segment. Countries like Sri Lanka should not
invent the wheel again, they should study what other countries have done and learn and find any other
specific area that they should develop to suit their own needs.
References
Helps (2016) What is a megatrend. Available at https://charliehelps.co/what-is-a-
megatrend/[Accsessed 3 October 2021]
Kumar (2017) Social Development and Protection Aging and the Elderly Statistics Charting Sri
Lanka's aging population
Available at:
https://www.un.org/en/development/desa/population/publications/pdf/ageing/WPA2017_Highlig
hts.pdf[Accessed 4 October 2021]
United Nations (2017) World Population Ageing, Economic and Social Affairs. United Nations
The Content Strategist (201=$0 =Tips for marketing to baby boomers in the digital
age. Available at https://contently.com/strategist/2014/07/16/4-tips-for-
marketing-to-baby-boomers-in-the-digital-age/. Accessed 4 October 2021.
Dobbs R, Remes J, Woetzel J. (2016) Emerging demographics are the new
emerging markets. Harvard Business Review.
https://hbr.org/2016/07/emerging-demographics-are-the-new-emerging-
markets. Accessed 4 October 2021.

5. McKinsey & Company Podcast (2016) Getting to know urban elderly
consumers. Available at: http://www.mckinsey.com/industries/consumer-
packaged-goods/our-insights/getting-to-know-urban-elderly-consumers.
Sendzik, K. (2013) Schumpeter’s View on Innovation and Entrepreneurship. Research
Gate [online]. Available from:
https://www.researchgate.net/publication/256060978_Schumpeter's_View_on_Innovatio
n_and_Entrepreneurship [ Accessed on 28 March 2021].
Bowell, A. (2017) Changing Demographics: Shifting the tapestry of society. Megatrends
by HP [online]. Available from: https://hpmegatrends.com/changing-demographics-
shifting-the-tapestry-of-society-3a91e23afb7b [ Accessed on 25 March 2021].
Cheal, D. (2000) Aging and Demographic Change. Analyze De Politiques [online]. 26,
pp. S109-S122. Available from: https://www.jstor.org/stable/3552574 [ Accessed on 25
March 2021].
contact Maxwell on : maxran1@yahoo.com