1. Introduction

The number of eldercare service institutions in China has surged, ranging from traditional nursing homes to contemporary retirement communities and service centers. Despite the diversity in forms, significant discrepancies in service quality and standards are evident. For instance, some institutions suffer from inadequate professional facilities, technical expertise, medical nursing staff, and comprehensive medical equipment. These issues necessitate reforms in the existing management models and the construction of new eldercare service paradigms. This study employs case study and literature analysis to identify the current challenges in the business models of the eldercare industry and proposes solutions. The research uncovers a breakthrough in the rapid development of China’s eldercare sector and offers an operational model for sustainable growth, providing solutions for the functioning of an aging society.

2. Current Status of Retirement Communities

The demand for retirement communities in China is ring, with a corresponding increase in their number. This section analyzes the current situation from four aspects: market demand, business models, government support, and technological application.

Market Demand Growth: China’s aging population continues to grow, driving demand for comfortable and convenient living environments suitable for the elderly. The concept of retirement communities is gaining popularity, attracting a large potential customer base. As research notes, “The spillover effects of retirement communities not only promote the development of the surrounding economy but also enhance the social welfare and environmental quality of community residents [1].” Many retirement communities are equipped with comprehensive facilities such as living areas, medical centers, recreational areas, and dining facilities, offering a one-stop solution for the daily needs of the elderly.

Innovative Business Models: To address the challenges of an aging society, various types of business models for retirement communities have emerged in the market. Some focus on providing high-end luxury services, targeting the elderly with high consumption levels. Others adopt a more inclusive approach, offering a variety of service packages to meet the needs of middle- and low-income groups. “The ‘insurance + retirement community’ model offers an innovative development path for the eldercare industry through resource integration and risk sharing [2].” Additionally, some communities collaborate with medical institutions to provide comprehensive medical and nursing care services, enhancing the value-added services of the community.

Government Support: The Chinese government has been actively promoting the development of the eldercare industry through policies and regulations. Measures such as financial subsidies, tax incentives, land support, and other means encourage investment and construction in retirement communities, creating a favorable policy environment for the industry’s development.

Technological Application: Many retirement communities have widely adopted advanced technologies. For instance, intelligent monitoring systems are used to ensure the safety of residents, while online platforms and mobile applications facilitate communication and service provision. The application of technology has improved the management efficiency and service quality of retirement communities.

3. Existing Issues in Retirement Communities

The development trend of retirement communities in recent years has been increasingly positive, with continuous improvements in various supporting facilities and an increasingly diverse array of service models. “The case study of the S retirement community’s business model construction demonstrates how innovation can strike a balance between profitability and service in practice [3].” However, it is undeniable that several challenges remain. For instance, limited financial investment leads to uneven resource allocation, a scarcity of professional talent hinders the improvement of service levels, and inadequate management mechanisms give rise to numerous conflicts. This section will delineate the problems existing in retirement communities in detail.

High Costs and Profit Margins: The construction and operation of retirement communities require substantial investment, including land acquisition, facility construction, and employee wages. This results in relatively high costs, and the high costs translate into higher prices for eldercare services, which may limit the affordability of some potential residents. Concurrently, due to intense competition and the need to provide high-quality services, the profit margins of retirement community businesses often face pressure.

Lack of Standards and Quality Assurance: The retirement community industry suffers from a lack of unified standards and regulations, leading to variations in service quality and management levels across different communities. Some communities may lack stringent quality control mechanisms, which affects the overall experience and satisfaction of residents. Therefore, there is a need for improved training and professional qualifications for staff in the eldercare sector of communities to ensure the provision of high-quality services.

Talent Shortage: The shortage of professional eldercare talent is a widespread issue in the eldercare industry. Low wages and challenging working conditions deter many high-quality professionals from entering the field. Moreover, the current workforce often falls short of meeting the high demands of eldercare, posing challenges to the provision of superior services.

Regional Distribution: The current distribution of retirement communities is relatively uneven, with some areas experiencing a high concentration of facilities, while others face a severe shortage. This distribution disparity create significant challenges for the elderly in remote or underdeveloped areas to access appropriate eldercare services.

Lack of Interdisciplinary Collaboration: Coordination and collaboration between different disciplines such as medicine, finance, and social work are crucial for providing comprehensive and integrated eldercare services. However, some retirement communities lack effective interdisciplinary collaboration, resulting in fragmented services and limited comprehensive care capabilities.

4. Solutions

The previous section outlined the existing issues in retirement communities. To overcome these challenges, it is necessary to strengthen government oversight and regulation, encourage innovation in business models, enhance staff training and professionalization, optimize the geographic distribution of retirement communities, and foster interdisciplinary collaboration. Addressing these issues in a continuous and coordinated manner will enable the business model of China’s retirement communities to achieve sustainable development and more effectively meet the needs of the growing elderly population.

The business model of retirement communities in China employs various marketing strategies to attract clients and promote services while also focusing on sustainability to ensure long-term success.

Digital Marketing: Leveraging online platforms such as social media, official websites, and digital advertising allows retirement communities to reach a broader audience. This encompasses a range of activities including building significant brand awareness, comprehensively showcasing the unique features and quality services of the community, and providing the convenience of virtual facility tours to the audience. “The application of Internet of Things and big data technologies in smart retirement communities not only enhances management efficiency but also improves the quality of life for the elderly [4].”

Brand Promotion and Awareness: By vigorously promoting the values, mission, and unwavering commitment to quality care held by the community, efforts are made to shape a strong and widely recognized brand image and reputation. This involves creating a brand identity that resonates deeply with potential clients, emphasizing the critical importance of comprehensive and reliable services.

Referral Marketing and Word-of-Mouth Promotion: Leveraging the trust element among clients by encouraging satisfied customers to share their positive experiences with others. This can be achieved through various means, such as implementing referral programs, establishing loyalty reward systems, and actively promoting positive reviews and referrals from residents and their families.

Partnerships and Collaborations: Collaborating with local organizations, government-related institutions, and community groups to significantly enhance the awareness of eldercare communities and foster a sense of community integration. “Commercial insurance plays a significant role in the Chinese eldercare market, providing financial support and a security mechanism for the development of retirement communities [5].” This can be reflected in organizing variousactivities, practical workshops, and interactive events for the elderly and their families, offering ample opportunities for communication and participation.

To ensure sustainable development, it is imperative to consider the long-term viability of the business model and the community’s impact on the environment, society, and economy.

Financial Sustainability: Possessing a robust and comprehensive financial plan is crucial to ensure the community’s ability to sustain its operations in the long term. This requires securing a diverse range of funding sources, such as government subsidies, private investments, and stable income from the services provided.

Environmental Sustainability: Actively implementing eco-friendly measures in the daily operations of the community, such as installing energy-saving systems, optimizing waste management practices, and adopting sustainable building measures. These measures reduce the community's environmental footprint and contribute to its long-term sustainability.

Social Responsibility: Engaging in various social activities to benefit the elderly and society at large. This can include implementing community outreach programs, supporting local organizations, and providing residents with abundant volunteer opportunities. By fully demonstrating social responsibility, the community can successfully establish trust and a positive public image, which plays a crucial role in attracting and retaining clients.

Continuous Improvement: Regularly conducting comprehensive assessments and optimizations of the community’s service levels, facility conditions, and operational models to closely align with the evolving needs of the elderly. This includes actively adopting cutting-edge technologies, promptly updating facilities and equipment, and providing staff with professional training and education on best practices in eldercare.

Overall, the business model of retirement communities in China employs a variety of marketing strategies to attract clients while emphasizing sustainability to ensure financial stability, implement eco-friendly practices, engage in social responsibility activities, and continuously improve services and operations.

The business model of retirement communities in China focuses on providing comprehensive services tailored to the needs of the elderly population. “From a meta-model perspective, the business model of insurance-based retirement communities offers a theoretical basis and promotes the standardized development of eldercare services [6].” It utilizes diverse marketing strategies to attract customers and promote its services, while emphasizing sustainability to ensure long-term success. The business model includes digital marketing, brand promotion, referral marketing, and collaboration with local organizations. To achieve sustainable development, it prioritizes financial stability, environmental practices, social responsibility, and continuous improvement. “Commercial mixed-use retirement facilities based in communities meet multi-level eldercare needs through comprehensive resource utilization [7].” In essence, the business model aims to provide high-quality care services for the elderly while ensuring the long-term viability and environmental responsibility of the community.

5. Conclusion

This study investigates the business models and sustainable development strategies of China’s eldercare industry. Through an analysis of the current situation in terms of market demand, innovation in business models, government support, and technological application, the paper identifies existing challenges in retirement communities, including high costs, talent shortages, uneven service quality, and uneven resource distribution. To address these issues, the study proposes several solutions, such as strengthening government oversight and regulation, promoting innovation in business models, enhancing service quality, optimizing resource allocation, and fostering interdisciplinary collaboration.

However, the research in this paper has certain limitations, such as a narrow scope of case studies and the insufficient breadth of data sources. Future studies could further integrate more empirical data, focus on regional differentiated demands, and explore the potential value of technology in empowering eldercare services. In conclusion, the sustainable development of the eldercare industry requires the collective efforts of all stakeholders to better address the challenges of an aging society and meet the diverse needs of the elderly.