CHINA CONSIDERS SCRAPPING BIRTH LIMITS – GLOBAL TOY INDUSTRY TO BENEFIT?
Back in 2016 when China relaxed their long term (since 1979) one child policy to allow Chinese families to have 2 children, the global toy industry smiled. The reports which have been circulating recently suggesting that China could scrap restrictions completely could offer positive news in a tough year for the global toy business.
Firstly, let’s just verify the reports – I have not been able to find any official announcements that any official consideration is underway – but no lesser source than the BBC recently reported on this issue: http://www.bbc.co.uk/news/business-44207670 As the BBC article points out, like many countries China has an ageing population with projections currently indicating that more than 25% of the population will be over 65 by the year 2050.
To reiterate a point I have made many times before – demographics, particularly birth rates are critical to the toy industry, as every new baby born is going to be a toy consumer for the next 7 to 10 years. So the fact that there could be an official reversal on policy in this space to help to soften the population age curve indicates a positive sales impact for the toy industry in the world’s second largest toy market – combine with this with the numbers of grandparents looking to gift their grandchildren and the future looks bright for the global toy industry!
by Steve Reece, CEO of Kids Brand Insight www.KidsBrandInsight.com, a leading toy expert consultancy to toy companies around the world. Services include Sourcing/factory finding especially in India & other ‘new’ manufacturing economies, toy business consultancy and product representation.