Are enterprises ready for Gen Z Parents?

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Hello, I’m Ennik Bao, a reporter based in Singapore, writes about China’s economy and business, filling Evelyn this week. Welcome to another China Connection edition.

This week, I consider how businesses that look at the Chinese baby care market are met with a new generation of parents-formed modern education and costs.

It is estimated that the child care market and motherhood reaches 4.63 trillion yuan (about $ 645 billion) In 2025, which is about 7% per annum, according to the industry Iresearch report in February.

The initial stimulus against Beijing’s stimulation will probably be seen in baby and maternal products before expanding into areas such as childhood medicine, early childhood education, insurance products, taking into account minors and technological services aimed at supporting family life.

“Think of the trolleys and formula today, but tomorrow Pre-K, private tutor and family trips, to digital learning tools (such as coding applications) and reasonable parenting applications,” said Khan Shan Lin, in the Shanghai Chinese country, the Chinese director of the business counseling of The ASIA Group.

Demanding and selective

Parents are also becoming more selective and demanding when it comes to what they buy.

Before making the goods, younger Chinese parents tend to spend more time comparing options, studying details and seeking expert reviews on the Internet, said Andy Lee, director of Oliver Whiman in Shanghai. “New parents have become more demanding.”

This raised the bar for brands, because it is no longer enough to offer quality, companies should also explain why their products are allocated.

“How to differentiate your proposal, your products against other players in the market have become the main problem,” Lee said, noting that it was more transparency to parents, especially when it comes to food ingredients, will lead to the first purchase, ensure and loyalty to the brand.

This enhancement of awareness plays in long-standing problems about the safety of products in China-Problem, which still resonates with Chinese parents almost two decades after the infant formula in 2008.

“For middle-class families, which still do not rest in the 2008 children’s scandal, many continue to choose foreign brands,” said Jaling Jiang, oriented by an independent consumer analyst.

As a sign of how quickly the public sentiments caused by parents who are technical, some home care brands have raised prices a few days after Beijing rolled out new family subsidies by attracting a quick reaction to social media.

The cost of one brand of children’s napkins jumped from 39 yuan on July 31 to 119 yuan on August 1, according to Manmanmai, an e -commerce price tracker, while the local formula jumped over 50% per day.

Young parents have accused the companies of “timing subsidies” before the money even came, some called for a boycott. Several Since then brands have apologizedDescription Increasing as periodic adjustments.

But this backlash emphasizes the switching of generations: Gen-Z parents value, social media and quickly call brands that are believed to cross the line.

Beijing’s launch

In the first country China last month launched The subsidies program for the production of childrenGiving up 3,600 yuan (503 dollars) a year for each child up to three years. It was the first time Beijing extended such a subsidy for the first child, and past measures aimed at pairs with a second or third child.

The government relies on a subsidy to reduce the financial burden on raising children and ease what it calls the “disturbing fertility” of young couples.

Separately Beijing announced on Tuesday that tuition fees abandoned children in the last year public preschool institutions and some private kindergartensStarting as soon as the next autumn semester.

Measures complement China’s efforts to reduce childcare costs at a time when the country looks at the demographic crisis, which is fueled by the slide of fertility.

China saw three Years in a row decline in populationand Seven years in a row Births decreases with A modest rebound in 2024. Muted birth levels also follow from an alarming decrease in marital levels that fell to the lowest level of almost half a century last year, just what 6.1 million new pairs.

Last year, birth declined to 9.7 million more than half of 18.8 million in 2016, when China has abandoned one child’s policy that restricted the size of Economist’s intelligence estimates based on official data, while the birth rate is slightly higher than 1.0.

Birth rate refers to the average number of children who would have a woman during her life.

In recent years, China has raised a three -year birth quota, contributed to tax care benefits and moved to curb school tuition costs. Local authorities conducted even more daring incentives from 10 000 Yuan Bonus on First Baby in the internal Mongolia to Monthly scholarships for large families In Shenyan.

But experts say that only financial incentives do not have enough to change their minds, especially among educated women in urban cities who continue to face a tough choice between careers, high childcare and high care.

Millennium and Gen ZS are also included in the so -called “generation of sandwich”, equalizing both the old parents and young children. “If you still have elderly parents because there is no particular supporting pension system, then many of your revenues go there, not starting your own family,” said Harry Murphy Cruz, head of economic research in the Oxford economy.

The cost of raising a child until they are 18 relative to GDP per capita, is about 6.3 times in China against 4.11 times per US, reports A Population study analytical tank.

Helping in-level cities, like Shanghai, was also reached inaccessible to most domestic households, Lin Asia said.

“For highly educated, single millennia and women, they have no children, a growing awareness of mental and physical activity that come with marriage and childbirth,” Jiang said.

She only noted that 3,600 Yuan subsidies covers only about 10 cans (800 to 900 grams) of the children’s formula.

So far, the Beijing rate is that the parents’ pockets are a little extra money-and the expenses for its launch are at least giving the country a short-term stimulus, even if it does not create a baby boom.

Chinese Byd has published its first decline of monthly supplies. In July the leading Chinese manufacturer EV Sent 341 030 unitsAbout 10% below 377 628 in June. The internal competitors of Li Auto and Nio also recorded the fall of supplies.

Nvidia denies China’s charge that its chips have a “switch”. Last week in the cyberspace, the Chinese administration stated Vulnerabilities in the company H20 AI chipwhich is focused on the Chinese market.

Chinese AI models with texts in the video is the scoreboard. Byte Hold first and third place In the research firm Artificial analysis‘Big Rating Generative Models AI Text-Video, while in Beijing Founded Coffer Cling ai ranks fifth.

– Yeo Boon Ping

Mainland Chinese CSI 300 grew by 0.18%and Hong Kong Hang the Index . To date, the mainland is 4.28%, the LSEG data has shown.

– Lee In Shan