As a major global challenge, population aging is an imminent reality that many countries need to confront. Currently, Japan has the highest aging rate in the world. As of 2024, 29.3% of its population is aged 65 and over, 16.8% are 75 and over, and 10.4% are 80 and over. Due to the large scale and promising prospects of the elderly care industry, many major Japanese companies are actively entering the field. Among them, electronics giants Sony and Panasonic have leveraged their respective business areas and technological strengths to develop uniquely distinctive models for the elderly care industry.
In 2014, Sony established Sony Lifecare as an independently operated entity under Sony Financial Group, focusing on the elderly care sector. Subsequently, Sony accelerated its expansion through acquisitions. In 2017, it acquired a professional elderly care company that operated 28 nursing homes, quickly gaining operational experience and expanding its facility network. This marked the shift of the company from "trial-and-error at individual sites" to "chain-based operations". By 2020, Sony had opened several high-end nursing homes in Tokyo and surrounding areas, with individual facilities reaching up to 66 rooms, such as the project in Saitama Prefecture.
Compared to Sony, Panasonic entered the elderly care industry much earlier and has been deeply involved for many years. In 1998, Panasonic established a subsidiary called Panasonic Age Free Services. In 2016, it was renamed Panasonic Age-Free Co., Ltd., marking the beginning of efforts to build a large-scale service network. By 2020, Panasonic had established 66 senior housing and nursing home facilities, 184 care service centers, 124 caregiving shops, and completed 29,000 home modifications for aging in place, creating a nationwide elderly care service network across Japan.
What then, are the common characteristics of these two electronics giants in developing the elderly care industry? According to analysis and summaries by researchers at ANBOUND, they can be mainly categorized into three key aspects.
First, both companies focus on high-end services. Unlike public elderly care, which is more inclusive and universal, these two electronics giants, despite differing in their specific approaches, primarily target the high-end elderly care market, offering highly standardized services. For example, Panasonic Age-Free operates a high-end nursing home in the suburbs of Tokyo, featuring 36 rooms, each measuring between 18 and 25 square meters. The facility accommodates both single individuals and couples. Some rooms are equipped with kitchens and private bathrooms, while the building also includes shared bathing facilities. Personalized nursing care and meal services are also provided.
However, the cost of living in these facilities is quite high. For example, at Panasonic's high-end nursing home, even the smallest single room requires an initial payment of several hundred thousand yen, with monthly fees ranging from approximately JPY 240,000 to JPY 280,000. Additional services such as cleaning and laundry incur extra charges. Sony follows a similar model. At its nursing home in Saitama Prefecture, the monthly fee for a single room is about JPY 400,000, while a double room costs up to JPY 760,000. These facilities are targeted at Japan's high-income retired population and are equipped with caregivers, physical therapists, personalized meal services, and dedicated activity spaces such as mahjong rooms and calligraphy areas.
Second, both companies leverage their own strengths to carry out elderly-friendly modifications. The two electronics giants actively incorporate their products and technologies into age-care settings, adapting them for aging populations and thereby unlocking new markets and enhancing the value of their offerings. For example, Panasonic takes into account the specific needs of seniors in all aspects, from overall spatial design to the smallest product details. Cabinet countertops are extended beyond the standard depth to make them more accessible for wheelchair users. Handrails are made of wood for a more comfortable touch, and their installation angles are carefully designed for each type of space. Walls and floors are made of non-slip, eco-friendly materials that can be quickly installed for localized renovations.
In addition, Panasonic has developed a range of elderly-friendly products, including smart toilets, foldable shower chairs, and electric adjustable beds. One example is the smart electric bed model PN-CG51M, which features back-lifting pressure-relief technology and a waterproof, non-slip surface. This design helps reduce pressure on internal organs and enhances comfort for bedridden users. Another product, the straight cane PN-GY04A(B/K) from Panasonic's health and wellness line, features a non-slip base and soft rubber materials to improve walking safety. Sony, on the other hand, is working to adapt all of its products to be accessible and user-friendly for both the elderly and people with disabilities.
In 2023, Sony announced that by fiscal year 2025, it aims to make, in principle, all of its products and services accessible to these communities, improving overall ease of use. Additionally, Sony has incorporated specific considerations into its product quality standards, such as including text labels on the four color-coded buttons of remote controls to assist users who have difficulty distinguishing colors. By 2025, nearly all major product categories, including TVs, audio systems, cameras, and smartphones, are expected to comply with such accessibility standards. The number of supported product types is projected to reach several hundred, excluding small accessories.
Both Sony and Panasonic are leveraging their strengths in digital technology to provide smart elderly care services, enhancing safety and quality of life for seniors. Sony, for instance, has introduced intelligent health monitoring systems in its nursing homes, using smart mattresses or ceiling sensors to track heart rate, breathing, and activity in real time, generating health reports and issuing automatic alerts when abnormalities are detected. It also offers remote medical services, enabling video consultations and automatic measurement of blood pressure and blood glucose, with data sent directly to medical centers. Additionally, IoT-based safety measures, such as sensors embedded in shoes or bags to track dementia patients' locations, and smart clothing like the Hamon line, which monitors vital signs and sends emergency alerts, further ensure comprehensive, tech-enabled care.
By comparison, Panasonic takes a slightly different approach. In its master bedrooms, Panasonic installs a deep-sleep and refreshed-wake system that uses smart monitoring to create an optimal sleep environment. Sensors analyze heart rate, breathing patterns, and sleep stages to provide personalized adjustments for better rest. In terms of safety, a 3D body posture sensor predicts fall risks, a smart electricity system ensures safe power usage, and location-tracking name tags monitor seniors' movements. Finally, to enhance daily convenience, Panasonic offers a smart mirror with intercom and entertainment functions, as well as smart terminals that integrate medical, social, and other services to improve overall quality of life.
All in all, Japan's leading electronics companies have responded to the country's severe population aging by proactively entering the elderly care industry and developing their own distinctive models. This is reflected in three main aspects: first, targeting the high-end market to achieve differentiated positioning; second, leveraging their core strengths to carry out age-friendly adaptations; and third, harnessing digital technologies to deliver smart, tech-enabled care services.
Currently, China faces the same aging population challenges as Japan, arguably even more severe. On one hand, China's aging population is characterized by its large scale, fast pace, and the reality of aging occurring before reaching economic prosperity. On the other hand, the country's manufacturing sector is grappling with intense internal competition and external trade barriers amid an unfavorable macroeconomic environment. In this context, Chinese manufacturing companies should consider the realities of domestic aging and actively learn from the models developed by Japan's electronics giants in the elderly care industry. By adapting and innovating based on these approaches, they can create elderly care models with distinct Chinese characteristics, unlock new market potential for their products, and drive new revenue growth for their businesses.
Final analysis conclusion:
As the country with the highest aging rate in the world, Japan's leading electronics companies have proactively entered the elderly care industry, developing their own distinctive models. These models are mainly reflected in three areas: first, focusing on high-end services to achieve differentiated market positioning; second, leveraging company-specific strengths to carry out age-friendly adaptations; and third, accelerating digital empowerment to provide smart care solutions. Chinese manufacturing enterprises can adapt these approaches, taking into account the country's specific demographic realities, and provide better services for the elderly population.
______________
Xia Ri is an Industry Researcher at ANBOUND, an independent think tank.
