Wednesday, May 22, 2013

Chinese "Six Pocket Syndrome" - Interesting fact of the day

The explosive world population growth has major implications for business. A
growing population does not mean growing markets unless these markets have sufficient
purchasing power. Nonetheless, companies that carefully analyze their markets
can find major opportunities. For example, to curb its skyrocketing population, the
Chinese government has passed regulations limiting families to one child per family.
Toy marketers, in particular, are paying attention to one consequence of these regulations:
These children are spoiled and fussed over as never before. Known in China
as “little emperors,” Chinese children are being showered with everything from candy
to computers as a result of what’s known as the “six pocket syndrome.” As many as
six adults—parents, grandparents, great-grandparents, and aunts and uncles—may be
indulging the whims of each child. This trend has encouraged such companies as
Japan’s Bandai Company (famous for its Mighty Morphin’ Power Rangers), Denmark’s
Lego Group, and Mattel to enter the Chinese market.

Src: Framework for Marketing Management by Philip Kotler

1 comment: