ECX3550: Ageing Population in Japan, Business Opportunities Analysis

This essay examines the significant impact of Japan's ageing population on its economy and the emergence of new business opportunities. It explores the demographic shifts, including declining fertility rates and increased life expectancy, and their consequences, such as a shrinking labor force and weakened GDP growth. The essay delves into potential solutions, including immigration policies, work-life balance initiatives, and increased female participation in the workforce. Furthermore, it highlights the innovative business responses to the ageing population, such as intelligent toilets, robot pets, and tailored services for the elderly. The analysis covers how businesses are adapting to the changing consumer preferences and needs of the older population, creating avenues for growth in healthcare, retail, and technology sectors. The essay references various academic sources to support its arguments and provides real-life examples of how businesses are capitalizing on the opportunities presented by Japan's ageing demographic. It concludes by emphasizing the importance of proactive government policies and innovative business strategies to address the challenges and leverage the opportunities associated with an ageing population.

Running head: AGEING POPULATION IN JAPAN
Ageing Population in Japan
Name of the student
Name of the University
Author note

1AGEING POPULATION IN JAPAN
Population ageing refers to the increase in median age in population pertaining to a
region that occurs owing to decline in the fertility rates or that of increase in life expectancy.
Aged population has been found to be highest within the human history. The life expectancy of
Japan has increased in the past century and it is currently the highest within the world. The
medical technology has improved in the present age that has made it natural for the people to
lead longer and healthier lives. In the year 2014, it has been found that 26 % of the Japanese
citizens were above 65 years of age (Ft.com., 2019). It has been estimated that this would
increase and reach 38.8 % by the end of the year 2050. Japan has a very high rate of suicide
especially among men. Suicide is the primary cause of the death for the people who are aged in
between 15-39. Japan had experienced baby boom in the post-war era in between the year 1947
and that of 1949 (Bloomberg.com., 2019). The economy of Japan cannot grow because the
demographics of Japan have weakened the growth of GDP within Japan. The shrinking of labour
force in Japan is hampering the prospect of various businesses in Japan. This essay throws light
on the measures that can help in solving the ageing problem in Japan. The essay also discusses
about the opportunities in relation to business within Japan.
The ageing problem in Japan can be solved in the event of the local government offers
support to the foreign residents. The local governments should formulate ‘multicultural
coexistence promotion plan’ that can prove to be instrumental in supporting the foreign residents.
The young foreigners who can speak Japanese till a certain degree should be accepted in the
society by establishing requisite frameworks at both national along with the local level. The
immigration policy can prove to be useful in overcoming the problem pertaining to ageing
population within Japan. The immigration policy can help in abating population decline and it
can help in ensuring sustainability of the Japanese society (Forbes.com., 2019). The government

2AGEING POPULATION IN JAPAN
in Japan should adopt pro-active approaches that can help in dealing with the ageing population
problem prevalent in Japan.
Japan can focus the policies on that of work-life balance that can help in improving
conditions pertaining to birth rate. Japan can pass various laws related to family care and child
care that can prove to be instrumental in solving ageing population problem within Japan. The
law in Japan should provide the parents of the new-born with the opportunity to take leaves that
can prove to be useful for Japan. Japan should realize the importance of counseling that can help
in reducing the rate of suicide among the youth (Asiaone.com., 2019). There should be state-
mandated training of the counselors that can help in improving the quality of counseling within
Japan. There should be requirements pertaining to mental health counselors and the work of the
counselors should be made more public that can help people in getting access to that of quality
healthcare in Japan (Businessinsider.in., 2019). There exists a perception within Japan that
asking for some kind of help makes an individual culturally unacceptable and this kind of
preconceptions should be removed that can greatly work to the advantage of the depressed youth
residing in Japan.
The participation rate of women in the workforce can be increased that can help Japan in
rising above the problem pertaining to ageing population. The companies should be pressurized
by the Japanese government in hiring more women. The leadership positions should be given to
the women that can help to a great extent in increasing the position that the women enjoy in the
Japanese society. Providing the women with work opportunities can help in improving the GDP
of Japan. It has been found that in the present time, current fertility rate is around 1.4 births for
each individual woman (Davies & James, 2016). The fertility rate cannot be increased in the
event of the women staying larger period of time in the workforce. The maternity leave should

3AGEING POPULATION IN JAPAN
be improved that can help in encouraging the women of Japan. The daycare system should be
made stronger that can play an important role in dealing with the decline of the fertility rate of
the women.
The government of Japan can pioneer care insurance initiative that can help in the
integration of the healthcare along with long-term care. Japan can spend a large amount of the
GDP on health care that can help them in overcoming the ageing population problem. The
private sector of Japan can switch the marketing focus from the youthful markets to opportunities
pertaining to the older customers (Nomura et al., 2017). The malls along with the retail outlets
within Japan can be designed in a manner that can play an important role in increasing its
increasing its appeal to the seniors. Japan can ensure participation of the older workers that can
help in creating flexible career path for the older workers.
The ageing of the people in Japan has created room for new ways that can help in taking
care of the elderly people. This has opened opportunities for the various businesses within Japan.
Government along with people in Japan can benefit from the health infrastructure along with job
openings within Japan (Businessinsider.in., 2019). The demand of the facilities for the elderly
people has increased in Japan so that the elderly people can manage the things easily in their
everyday life. There are various companies within Japan that has tried to find ideas along with
helpful facilities that can provide helpful solution to the elderly people (Bloom et al., 2015).
This has increased chances for business, manufacturers along with service providers for
developing the products so that it can suit those age groups. There are high tech products along
with services within Japan that are created for elderly that is dominated by nursing care along
with pharmaceuticals (Wirth et al., 2016). Peter Drucker in his Opportunity Based Theory has
stated that the entrepreneurs excel at observing and they take the advantage of the possibilities

4AGEING POPULATION IN JAPAN
that rise out of cultural changes (Yokokura, 2018). The entrepreneurs in the society do not bring
about changes but they exploit the opportunities pertaining to change. The companies in Japan
take the advantage of the change in the demography and the consumer preferences in to bring
about something new that can cater to the needs of the people. The rise in the ageing population
of Japan can help the various businesses in bringing out new services that can make life better
for the aged people.
There are various Japanese hotels that has taken recourse to “intelligent toilets” that
greatly serves the need of the elderly people (Bloomberg.com., 2019). The intelligent toilets have
various functions which have been set at seat that can push up the elderly people so that they can
easily get off the toilet seats. The real-life example of intelligent toilets stands as an example of
the fact that ageing population within Japan has helped in opening opportunities for various
kinds of business in the country. There has been co-operation made between “Toto” along with
“Daiwa House” toilets have been installed for the pensioners for the convenience of the elderly
people. The toilets have installed medical sugars that can prove to be instrumental in measuring
body fat along with blood pressure (Sakai et al., 2016). There is also an internet device which
can e-mail healthy information directly to that of the doctor that can help in ensuring the health
of the ageing people within Japan. The real-life example of intelligent cars having dashboards
helps elderly people in seeing the dashboards very easily (Phillips, 2018). Robot pets have also
been created in Japan in the present age since maintaining a real-life pet would prove to be
difficult for the elderly people. The robot pets act like the real pets and they respond to the
owners like the real pets (Forbes.com., 2019).
Population ageing is indicative of increase in that of median age within a particular
region. Population ageing takes place owing to declining fertility rates along with increase of the

5AGEING POPULATION IN JAPAN
factor of life expectancy. The life expectancy within Japan has found to be highest in the present
age. Improvements made in the realm of medical technology have enabled people to lead a
healthier life. The high suicide rate among the young population of Japan has given rise to
demography changes in the country. In the event of the local government lending its hand for
supporting the elderly population ageing problem in Japan can be solved. The multicultural
promotion plan of the government in Japan can provide support to that of the foreign residents
living within Japan. The elderly people need facilities so that they can easily manage things in
relation to their everyday existence. Various businesses have evolved in Japan owing to the fact
that elderly people needs resources that can help them in adjusting to the everyday existence.
There are many hotels in Japan that has intelligent toilets that serves the needs of the elderly
people. The functions of the intelligent toilets make life easier for the elderly people living
within Japan. The intelligent cars that have dashboard also greatly benefit the ageing population
of Japan. The robot pets that act like the real pets help in providing sense of companionship to
the aged people of Japan.

6AGEING POPULATION IN JAPAN
References
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Bloom, D. E., Chatterji, S., Kowal, P., Lloyd-Sherlock, P., McKee, M., Rechel, B., ... & Smith, J.
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7AGEING POPULATION IN JAPAN
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