State Policy Facilitates Development Relating to Infant's & Kid's Industry

2014-03-21 16:57:37

Recently, according to the 3rd Plenary Session of 18th Central Committee of CPC,Chinawill begin to implement a new policy to allow a couple with one being the only-child to bear two children. After the announcement, it soon becomes the general focus of the Chinese people. This policy will facilitate the number of new-born babies, thus will greatly boost the development of  industries relating to infant business and benefit enterprises in milk powder,  maternal and infant care, kids’ healthy growth and consultation, etc. areas.

 

Some experts said that influenced by the short stimulus, the long-standing “Strong Needs for Fertility” will be satisfied in the future. In next 5 to 10 years, there will be a moderate baby boom inChina, which is conductive to promote economy through consumption and generates huge reform profits. The infant industry will benefit most, covering business like infant milk powder, toys, maternal and child health care, kids education, health, growth garden, etc.


Huatai Securities expected that China will face a 2 to 3-year birth peak from 2015. From 2015 to 2019, it is roughly estimated that the birth growth rate indicating respectively as 25%
25%20%15%15%. That means the number of the newly increased baby will reach 2 Million in 2015 and 2016, 1.6 Million in 2017, 1.2 Million in 2018 and 2019. Based on this, there will be 8 Million new babies born from 2015 to 2019.

There have been increasing discussions and speculations since the announcement of the policy. According to Wantchinatimes, after carrying out this policy, market for the new-born babies will generate trillions of RMB consumption. Besides, transformation of the fertility policy in Chinese Mainland also produces “The Second Child Concept” shares, which brings huge opportunities for industries like milk powder, kid’s education, etc.

 

The huge and anticipatable infants’ birth rate will no doubt bring promising future for infant industry. Statistics show that in 2010, market demand inChinaaiming at 0 to 12 year-old kids generates at least 1 Trillion RMB consumption.Chinabecomes the largest kids’ consumption market in the world in 2012. In 2015, the kids market will probably generate 2 Trillion RMB and 3 Trillion RMB consumption in the future. Future space of the growing kids market is like a giant sponge for capital, thus greatly attracts people’s attention.