In China, the world of children reaches new heights
20 to 22 million : this is the number of births registered in China each year. A statistic that tends to fall but which remains exceptional from a volume point of view. When we see the stagnation of the markets in the world of children, it is a potential that inevitably makes people dream. Here we give you some tips for accessing this new epicenter of the children's market.
The explosion of domestic consumption
What must be understood with China is that after two decades of development through exports, it is in the process of reorienting its model towards domestic consumption. If you are redirected here, you will know more about the consumption of children. The reason: the explosion of the middle classes, which are now reaching dizzying figures. 400 million people would thus earn more than 10,000 dollars a year in China.
In 2019, the country would have overtaken the United States in terms of retail, totaling 22% of the sector's market share. The most interesting is the geographical distribution. Where the growth of the 2000s was concentrated on the large agglomerations on the coasts (Shanghai, Beijing, Canton, etc.), it is now exploding in the intermediate cities of 2 million inhabitants. And there are about fifty of these in China. A mass market dynamic that is reinforced when we focus on the children's market.
The child, a major concern of the new generation
So, why this craze has been going on for five years ? First of all political factors with the pronatalist reorientation of the State which seeks to rejuvenate a population affected by aging. End of the one-child policy in 2015, tax incentives, etc. But the effects are slow to come and the only child remains the norm, hence a certain social pressure for its success.
Another structuring factor : Chinese children are destined to support the entire inverted pyramid of their family of 4 grandparents and 2 parents. A societal phenomenon which is coupled with a generational effect at the level of the parents. These were born in the 80s or 90s so they are highly digitized populations who have acquired greater purchasing power than their own parents. They are willing to shell out a bigger budget for lifestyle consumer goods.