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China Daily Website

An old age problem facing local society

Updated: 2013-06-08 11:00
By Sun Yuanqing (China Daily)

"The management model we brought in from the US needs to be localized and a good partner can help us with that. Sino-Ocean Land has upmarket assets and has first-hand knowledge about upmarket customers, which can help us localize our product," said Serena Xie, managing director of Cascade Healthcare.

The company also integrated traditional Chinese medicine treatment into its original care model to cater to the preferences of the elderly.

For Chinese companies starting from scratch, the Western expertise is more than handy, just as much as their Western counterparts need local knowledge.

Vcanland, a real estate developer in Tianjin, decided in 2010 to shift its focus from traditional real estate to senior care and housing, in the hope of being a leader in a market that had very few players.

Leading role

"There was a leading role in every segment of the real estate market except the senior housing sector. Everyone started from zero so that makes it possible for us to be the leader," said Wei Song, CEO of Vcanland Senior Living Group.

However, the company realized that it would be unable to realize its ambitions without help from a foreign partner. It teamed up with Watermark Retirement Communities, based in Tucson, Arizona, to create a platform that includes everything from senior dining, amenities, security and acute healthcare for Chinese seniors.

Wei said: "Simply put, we want to play a role in the senior-care industry in the same way Marriot is to the hotel business - a distinguished management company. China doesn't have one so far but will soon have."

The company has hired more than 10 professionals from the US, Hong Kong and Taiwan and expects to turn their know-how into their own business model.

It is going to open a dementia care center in Tianjin and two assisted-living facilities in Shanghai within two years. It has also bought a slot of land in downtown Shanghai to build a retirement community.

Policy gaps

One risk that investors face is that the regulatory framework in China for the senior care and housing industry is only in its infancy.

"A lot of people are watching without getting involved because the existing policies are not very clear, especially in aspects such as pricing. The government has to assure investors on aspects such as subsidies to encourage further involvement," said Yang from Tsinghua University.

At the moment, foreign operators do not enjoy the subsidies given to domestic ones on tax, water and electricity or land.

 
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