A happy carefree retirement is the dream of many people after decades of hard work. A retirement survey conducted in mid-2020 by Insights Unlimited, an online research community, revealed that most interviewees envisioned their retirement to be happy, healthy and free. However, local society sees a mismatch between the ageing population and the provision of elderly care services. So, is a joyful and carefree retirement really an unattainable dream?
A silver market with huge potential
According to Population ageing trend of Hong Kong published by the Office of the Government Economist in February 2019, the size and share of the elderly population will almost double from 1.27 million in 2018 and 17.9% to 2.44 million and 31.9% in 2038. In other words, nearly one in every three persons will be elders in 2038. In face of the rapidly ageing population, the provision of elderly housing has become a major issue. Elderly living facilities are in extreme shortage in Hong Kong. Plus, the elderly will be expecting more quality services due to their higher education level and better financial situation. That is why many of the current elderly services are still inadequate to meet the growing demand.
With the corporate mission of creating shared value, Stan Group endeavours to leverage its commercial power to meet social needs and bring mutual benefits to both corporate and community. Starting from 2018, we have proactively expanded the silver market, turning the dire need for quality senior services into new innovative business opportunities. By venturing into a new market of huge potential, the Group aspires to generate profit while simultaneously responding to social needs, bringing positive impact to stakeholders and society.
An innovative model with synergy
The Elderly Services Programme Plan was brought forward by the Elderly Commission in 2017 as blueprint for improvement and further development of various elderly services. In the plan, ageing-in-place is one of the overarching principles. Riding on the wave presented by this policy, Tang’s Living Group, a member of Stan Group, launched Patina Wellness together with Pine Care Group in 2018. The project has created a sound synergy between Stan Group’s property resources and expertise in hospitality, and Pine Care’s 30+ years of professional experience in elderly services. Patina Wellness is in fact Hong Kong’s first integrated senior elderly wellness hub residence run by the private sector.
Patina Wellness targets the market of middle-class retirees, integrating serviced apartments, a residential care home, a clubhouse, a health centre and a restaurant. The high-quality elderly housing services and living facilities are provided as a holistic and innovative package. The elderly may enjoy living with their family while taking advantage of the clubhouse facilities and the healthy menu offered by the restaurant. They may live in a hotel-quality home while having their health needs taken care of by a team of registered medical professionals. Patina Wellness is an all-rounded solution for seniors to age in place and lead an active social life.
Patina Wellness has received amazing feedback and won widespread popularity since its opening, which testifies Stan Group’s successful business model to create shared value. In view of this, we decided to speed up our expansion of the elderly market and secure the market share. In early 2020, honourable chairman Tang Shing-bor and chairman Stan Tang of Stan Group acquired Pine Care Group Limited (Hong Kong stock code: 1989) and made the two Groups strategic partners in eldercare services. By synergising their strengths and continuous innovation, they strive to provide professional and top-notch elderly home to the silver community and thereby raising the quality standard for the entire industry.
A national expansion of health & wellness services
Looking ahead, Stan Group seeks to review the current framework and redefine senior care services by upscaling its businesses to a new dimension and expanding its market from Hong Kong to the Greater Bay Area.
As the economy grows rapidly, people desire for a better-quality lifestyle. The pursuit of good health is universal as physical wellbeing is vital to happiness. As an extension of elderly care, the health & wellness industry now also covers health care, medical care, sports, tourism, etc. Health & wellness is expected to be an up-and-coming industry in the Mainland China and Hong Kong.
As the One-Child Policy was implemented in the mainland for many years, demographic dividend is on a downward trend while elderly dependency ratio is rising sharply. Against this backdrop, we see the increasing potential of the elderly market. According to a research on senior care consumption and senior care industry development published by the National Social Science Fund of China, the senior care industry reached 490 billion RMB in 2015 and was expected to surge to 48.52 trillion RMB by 2050, with a nearly tenfold increase.
In response to the trend, Stan Group has signed the Memorandum of Understanding with Dasin Real Estate on the Dasin⠐ Sunshine City project in Zhongshan, China. The strategic cooperation will harness the resources of both parties on the operation of the senior care property and the ancillary facilities of medicine, food, housing, transportation in the Greater Bay Area, establishing the Dasin⠐ Sunshine City project as a high-quality and outstanding retirement community. The partnership not only marks a significant milestone of Stan Group as we expand our health & wellness business to the Greater Bay Area, but will also enhance the service standard of the senior care industry in the Greater Bay Area. Providing Hong Kong's senior citizens with high-quality senior care services in the Greater Bay Area will be a means to resolve the pressure brought by the ageing population and the shortage of land, thus creating a win-win situation where an outstanding community is constructed for the elderly.
With a devotion to creating shared value, Stan Group will make the best efforts to build the senior care and health & wellness industry of tomorrow. Through integrating eldercare with its core businesses, the Group hopes to create a synergy to bring positive impact to society so that all will have access to quality senior care services and enjoy a joyful and carefree life in their golden years.