China's population of people over 60 exceeds 3 million, and the silver industry (silver economy) is experiencing a wind of advancement
BOE Jin Cheong-seok, “We want to test Korea’s smart care products and services that are ahead of China”
China's Aging Population and the Silver Economy
According to data released by China's National Bureau of Statistics in early 2025, by the end of 2024, the number of people aged 60 and above in China will reach 22 million, accounting for 3% of the total population. It is also expected to exceed 1000 million by 2035, exceeding 4% of the total population. This serious aging trend and the rapidly growing elderly population are having a far-reaching impact on the silver industry, also known as the silver economy. In terms of market demand, the huge elderly population creates a huge demand for elderly care services, facilities, and elderly products, leading to the market expansion of the elderly economy. In addition, the weakening of the elderly care function within the family due to the nuclear family has further highlighted the importance and urgency of social nursing services.
<Trends in China's population aged 60 and over>
(Unit: ten thousand people)
[Data: China Government Network, KOTRA Chengdu Trade Center]
Sichuan Province is a typical province with a large population and a densely populated elderly population. According to the announcement by the Sichuan Provincial People's Government in October 2024, by the end of 2023, the number of elderly people aged 60 and over in the province will reach 1816 million, accounting for 21.7% of the total population, which is the highest in the country. The growing elderly population is rapidly increasing the demand for elderly services, and the expansion of elderly facilities and institutions has become an urgent task. In particular, rural areas are experiencing more difficulties in providing elderly services due to development constraints, so the Chinese government is accelerating the development of customized elderly care models and service systems that fit rural conditions. The differences in the level of aging between regions require regionally specialized development strategies and policies. Accordingly, the integration of the elderly care industry with cutting-edge information technologies such as the Internet, big data, and artificial intelligence is becoming a key task for the development of the silver industry.
Visiting Jincheng Shiguang, a state-of-the-art nursing home built by BOE
BOE Jinqingshiguang is a high-end smart medical and nursing community built and operated directly by BOE Technology Group, China's largest display company. It mainly targets the elderly, mainly from the middle and high-income brackets, who have a high desire for improved quality of life and value health care and medical insurance. This community combines BOE's technological strengths in display, sensor, artificial intelligence, and big data as a tech company with BOE's advanced medical resources from BOE Hospital. The core value is to improve the quality and efficiency of nursing services through an innovative medical-nursing convergence model, and to meet various needs such as elderly living care, medical nursing, rehabilitation health, and spiritual culture.
[Data: Company catalog, KOTRA Chengdu Trade Center (Related fees: Monthly basis)]
The community is located in Tianfu International Bio-Town in Chengdu City, adjacent to the artificial lake Yongan Lake Forest Park. The total construction area is about 11 square meters, and can be divided into self-reliance zones and nursing zones according to the health status of the elderly, and can provide services to about 6000 people at the same time. The community is operated based on the three characteristics of medical and nursing integration (医养融合), strengthening intelligent care services (智慧赋能), and sharing vitality (活力共享).
<Jincheng Shiguang Premium Community Location>
<Community Bird's Eye View>
[Source: Company Catalog]
1. Convergence of medical and nursing care
BOE Jinqingshiguang Community is adjacent to Chengdu BOE Hospital, a general hospital facility, and is considered a community that integrates actual medical care and nursing care. When moving in, the elderly create a personal health record through a physical health assessment, which is linked to the medical records of BOE Hospital, so that medical and nursing services are smoothly linked. If treatment is needed, they can receive prompt treatment without complicated hospitalization procedures, and in case of an emergency, they can be immediately transferred through an underground passage connected to the hospital.
In terms of medical services, it is closely linked to BOE Hospital, so “treatment and hospitalization are connected without interruption,” and specialists regularly visit and provide treatment without a separate registration procedure. Residents are particularly highly satisfied with the convenience of services such as chronic disease management and post-surgical rehabilitation.
<Use in medical services>
Various medical needs such as pre-registration and waiting (before going to the hospital), examination reservation, and printing out video reports (after visiting the hospital) are resolved through kiosks installed within the community.
[Data: KOTRA Chengdu Trade Center photo]
The community provides customized chronic disease management according to the health status of the elderly, and operates a comprehensive health management system from disease prevention to treatment by combining with BOE Hospital's smart health management and rehabilitation medicine services. Elderly people with limited mobility can also perform simple rehabilitation activities such as muscle exercise through mechanical assistive devices, helping to maintain physical functions.
<Customized Chronic Disease Management>
A scene where an elderly person with limited mobility relaxes his muscles by using a machine to move.
[Data: KOTRA Chengdu Trade Center photo]
In terms of facilities, there is a garden and a sun-blocking corridor connecting each building, allowing free walking and outdoor exercise. Each major facility is equipped with senior-friendly facilities such as anti-slip tracks, auxiliary armrests, and chairs for the elderly, ensuring safe outdoor activities for the elderly.
<Use in terms of facilities>
Sun-blocking corridor
Sun-blocking corridor
Anti-slip track
Auxiliary armrest
[Data: KOTRA Chengdu Trade Center photo]
2. Strengthening IoT-based smart care services (intelligence enhancement)
BOE Jinqingsguang has established a 24-hour all-round smart elderly care service based on BOE’s self-developed cutting-edge Internet of Things (IoT) technology. The tech company has installed and integrated more than 30 smart IoT devices from BOE and is applying them to various fields such as smart home, smart health, and smart food.
The smart home system is equipped with intelligent facilities such as electric curtains and smart speakers, allowing the elderly to easily control home appliances with just voice commands. In addition, meticulous elderly-friendly equipment such as emergency call systems, barrier-free passageways, rounded-corner furniture, electronic door locks, fall detection radars, and smart monitoring mattresses are noticeable.
The human detection radar monitors the activity status of the elderly in real time, and immediately sounds an alarm in the event of a fall accident, which is a vulnerable situation for the elderly, allowing nurses to respond quickly. The smart monitoring mattress measures physiological indicators such as sleep quality, heart rate, and respiration, and transmits them to the health management platform, providing basic data for health assessment.
<Smart Care Service>
Model house image (living room)
Model house image (bedroom)
Model house image (bathroom)
[Source: Company Catalog]
Non-contact smart sleep and health monitoring devices installed in the living room and bedroom protect privacy while accurately measuring health data such as heart rate and respiration and transmitting them to the platform in real time. However, the impact of the 24-hour monitoring system on the privacy and autonomy of the elderly and the difficulties experienced by the elderly with low digital literacy in adapting to such a system seemed to be limitations.
<Non-contact smart sleep and health monitoring detection system>
[Data: KOTRA Chengdu Trade Center photo]
In addition, smart badges and smart medicine boxes help seniors live more conveniently. With just one smart badge, you can use various functions such as emergency calls, door opening and closing, and payment. The smart medicine box automatically reminds you when to take your medication and manages your medication records, enabling systematic medication management.
<Usage in daily life>
Smart Badge
Smart Pill Box
[Data: KOTRA Chengdu Trade Center photo]
In the smart healthcare sector, health check-up equipment such as smart bands and smart blood pressure monitors are available so that health check-ups can be conducted at any time, and the measured data is automatically linked to the health management platform. Based on this data, medical staff establish a personalized health management plan for each individual.
<Application in the smart healthcare field>
Elderly person measuring his/her own blood pressure
Smart health examination equipment (body composition analyzer/blood pressure monitor)
Smart health checkup equipment (blood sugar/uric acid/cholesterol/blood oxygen)
Real-time health management platform
[Data: KOTRA Chengdu Trade Center photo]
The smart food system provides the ability to trace the origin of food ingredients and analyze their nutrition. When you put food on a smart plate and place it on the device, you can check the origin and nutritional information of the food, and choose and eat food that suits your health status and dietary needs.
3. Sharing vitality
BOE Jincheongsgwang is based on the idea of sharing vitality and is focused on improving the quality of life and happiness by creating a lively and harmonious community atmosphere for the elderly. In addition to a private kitchen in each residential space, there is also a shared home kitchen where families can enjoy meals together on special days such as holidays or birthdays.
In terms of activities and social interactions, the community has a large public clubhouse and organizes cultural and recreational activities, health classes, etc. The feedback from the active seniors is that “there is enough social space and the life is fulfilling.” The community has various leisure facilities such as an indoor golf practice range, table tennis room, karaoke room, and craft room, and through the operation of an active activity reward program (providing coffee coupons for participating in activities, etc.), it enriches the mental and cultural lives of the seniors and creates a positive community culture.
<Sharing Vitality>
Old people learning calligraphy
Old people dancing
[Data: KOTRA Chengdu Trade Center photo]
According to the residents’ evaluation, the natural environment adjacent to the oxygen-rich Yeonganho Forest Park and the 4㎡ healing garden are considered the greatest advantages in terms of facilities and environment. The interior is equipped with senior-friendly facilities (anti-slip tracks, double railings, etc.) and is evaluated as meeting the social needs of seniors, such as walking, gardening, and social activities.
On April 4, KOTRA Chengdu Trade Center conducted an interview with BOE Jin Cheng Shiguang, who is in charge of community design and smart system introduction.
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Interview with BOE Jin Cheong-seok’s General Manager Q1. What types of cooperation are you considering with Korean companies? A1. We are recognized as a representative project combining medical services and nursing care services in China, and we are very interested in the application and development of new products related to various pharmaceuticals and medical (drug) and non-medical treatments. Accordingly, Korea's excellent senior smart care products can be applied in the field and linked to BOE's hardware system and care services to provide a test bed.
Q2. There are many Korean nursing care devices that have not obtained Chinese certification despite their technological prowess. Is it possible to apply these devices on site and share the test results? A2. For pharmaceutical products used on the human body, testing and certification are required for safety. However, for products and services classified as health devices or equipment not administered to the human body, we will provide opportunities to test without certification.
Q3. What is the background to BOE’s entry into the nursing care industry? A3. The silver economy market opportunity is huge due to China’s aging population. BOE is a tech company with strengths in electrical and electronic manufacturing, and is interested in building an IoT hospital that combines new medical technologies and advanced elderly care services, as well as an ecosystem related to it. In addition, as a representative state-owned enterprise in China, it has great significance in giving back to society.
Q4. Is there a possibility that Korean companies can enter the Chinese market with wellness products such as solutions for brain degeneration or hearing impairment for the elderly? A4. If it is not registered as a Class 2 or 3 medical device under the management of the National Medical Products Administration (NMPA) in China, it is difficult to enter the Chinese health insurance system, which makes it less acceptable to the elderly with low income levels. Accordingly, rather than medical devices with difficult certification, entering the market as a wellness device is a quick way to enter the market. Q5. What are your plans for future business expansion or overseas expansion? A5. Currently, we are building nursing homes next to five BOE hospitals nationwide and conducting many tests linking medical and nursing services. Our priority is to distribute this nationwide. Korea and Japan are more advanced in nursing than us, so we see them as difficult markets to enter with BOE’s model right away.
Q6. What are the revenue generation plans or government support related to the occupancy rate or operating model of BOE nursing homes? A6. We operate with government subsidies, long-term care insurance revenue based on the physical grade of residents, and revenue from the use of auxiliary facilities. We consider 45% occupancy rate as our break-even point (BEP), and analyze that we will generate target revenue when it reaches 75%. Our facility receives basic operating subsidies from the government, but since it is classified as a high-end nursing home, insurance or subsidy revenue is not large. However, we receive benefits such as utility costs being applied for household use rather than commercial use. |
implication
BOE Jinqingshiguang Premium Community is considered a leading example of innovation in China’s smart nursing industry. As confirmed in the interview, it is a “representative project combining medical services and nursing services,” and it also opens up various possibilities for cooperation with Korean companies.
Based on the interview, the promising areas for Korean companies to advance into the Chinese smart silver care market are summarized as follows.
(Healthcare devices in the wellness sector) Rather than medical devices with strict certification, entering the market with health care devices in the wellness sector can be a quick way to enter the market. Health monitoring devices and lifestyle improvement devices can be priority targets for cooperation.
(Development) This means that there is potential for cooperation with Korea in areas such as physical therapy equipment, rehabilitation assistive devices, and cognitive ability enhancement programs.
(IoT-based smart care solution) There is also great potential for cooperation with our companies in areas such as IoT-based healthcare monitoring systems and smart home solutions for building a ‘smart senior hospital ecosystem’ that combines new medical technologies and advanced nursing services.
Collaborating with China’s advanced nursing homes can provide a bridgehead for Korean companies to access China’s massive silver market. In particular, wellness and non-medical care products can provide an effective route to quickly enter the market while bypassing China’s certification barriers. For medical device companies, the model is effective as it provides a valuable opportunity to test and improve products in real-world environments. As China’s aging trend accelerates, the model and experience of these premium communities can also serve as important reference cases for Asian and developed markets that are facing different aging societies.