Retail in Asia

In Markets

Chinese market ages

Although China’s market potential is unmatched, the aging of its population presents retailing challenges, according to the Nielsen Company. As a consequence of China’s one-child policy, its population is aging at an accelerated pace.

Nielsen advises that a mix of brands targeted at different demographic groups, or those that work well in India or other less-developed nations, may struggle in China.

As the Chinese population ages, household sizes will continue to shrink and the share of households that have children will continue to fall. This means less variance in the buying rate for products that rely on use by multiple family members for volume. Gaining new users and the retention of current users will be far more important strategies than seeking to grow volume within existing users.

(Source: Retailer Daily)