Mintel: end of one-child policy will boost baby care in China

By Chris BARKER

- Last updated on GMT

Mintel: end of one-child policy will boost baby care in China
The recent relaxation of China’s one child per family policy is expected to lead to a surge in baby care and post-pregnancy cosmetics products in the region, according to a Mintel analyst.

Laurie Du, Beauty Analyst at the market research company, expects that whilst the strengthening economic condition will improve the industry’s performance, the most profound changes in the region’s cosmetics markets will be related to demographic trends.

Du expects other coming trends to include an increased demand for anti-aging connected to changes in the country’s retirement laws.

The analyst commented to CosmeticsDesign-Asia.com: “The coming trends in the Chinese cosmetics industry will be closely linked to demographic features.”

“Anti-aging will keep its momentum with the aging process of the 1970s and 1980s who are exactly the major consumers for anti-aging products with strong purchasing power…The recent relaxation on one child policy is expected to add 2 million babies each year since 2014, baby products and mother care including pre-pregnancy and post pregnancy sectors will be on the rise.”

Demographic changes

China announced this November that the one-child policy, which limits each family to a single offspring, will be revised to be less restrictive. Amongst other things, this is likely to have a long-term impact on the gender ratio in the country due to a higher rate of abortions for female babies.

The Mintel analyst suggests that legal changes will also prompt a shift in opportunities, commenting: “China’s recent policy of postponing retirement age will create more opportunities for new categories and features for new product launches.”

She also pointed to a “going inland” ​trend in the industry, with many companies such as Kao and Unilever building manufacturing bases further away from the coast due to the increasing costs in these areas.

Taking advantage of the changing circumstances

Du says that there is “no doubt” ​that China’s strengthening economic condition will have a positive effect on cosmetics markets in the region thanks to the increased purchasing power of the middle class for consumer goods.

She suggests that in order to grow their businesses to best effect, companies should diversify their retail channels and take advantage of new media.

The analyst commented: “To grow Chinese business in changing economic situation, cosmetics companies need to broaden geographic coverage by entering more cities, which will recruit more customers. China’s lower tier cities are experiencing development of retail infrastructure and deepening urbanization process.”

“Innovative campaigning in the field of digital marketing will be essential…nowadays Chinese consumers’ media contact is turning fragmented, and digital media usage is growing.”

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