China and India have demonstrated trend toward Western- style consumption over the last decade. Given the emphasis on the youth market in the U.S. over the last 60 years ( since the baby boom), what can you suggest for marketers in these youth-oriented consumer economies ( China and India)?
Given on the subject of globalism, it is very common nowadays to see Western influenced services or goods around the world, and this have also penetrated the East Asia market most noticeably in China and India. It is known that China is one of a stronghold in terms of labor market, we all know that most Western companies have recognized China as a source of cheap labor market. Significantly, China has been projected as part of consumer spending that country alone have been known in its burgeoning population where its current population is said to be about 1, 390,510,630 which makes up around 19.3% of the word’s population (World Population Statistics, 2004).
Macroeconomic themes have been found around the world in terms of several key areas. While in India the population in the age demographic of 15-34 have increased from 353 million in 2001 to 430 million in 2011, the results of this is now seen that every third person in an Indian society is a youth (Shivakumar, 2014). What is seen in the China market is that of their one-child policy and this is seen as a strong factor in the Chinese youth market, it is noted by Brown et al. (2011) since its enactment in the 1980’s which affected in 90 million only children makes the Chinese youth market unique. The article further explores that the results f this policy is realized on the single child that is the focus of both parents and four grandparents which leads to over-indulgence and high-pressure. These one-child policy children are often referred as “ little emperors” and are said to be very persuasive in how their parents spend their money. Furthermore, this also makes up the youth in China as they decide what they want in their lives, as their lives is often laced with much familial attention and pressure on cultivating these only-children which gives the impression that they are interested in expressing their identity through a personal choice (Brown et al., 2011).
This is different as seen to what is happening in the U.S. where most youth have siblings where the parents balance the demands of each the youths in China is seen to be more attuned on their needs. It is relative that consumers under the age of 28 is not good at saving money, since of their attitude that they will not have to worry about anything else in their futures. It is usually people worry about things when problem arises instead of preventing the problem ahead of time. It is said the people will be getting between a 10 to 20 percent increase in their annual salaries, therefore majority of their expenditure is based on enjoyment. Each generation is different making it utterly difficult to study the youth market in this country. What is seen in these past years is the advancement of technological advances making today’s youth priority is made upon the convenience, quality and speed.
It is significant in this microeconomic theme that marketers have finally figured out that in order to continue patronage in their products and services they should provide the proper goods and services. This is seen in the case of Gap penetrating the China youth market in its usually cookie cutter approach by establishing its presence in the world’s youth market as it targets on the increasing middle class consumers as seen in the China market yet this failed to capture the attention of their most important customers, the Chinese youth. Gap is seen as a middle class apparel selling for luxury price, status and luxury is important for Chinese consumers however the premium price for middle class product is a cost youths not willing to shoulder (Brown et al., 2011).
The western style basis of consumption is basically spending more money; This has been a macroeconomic influence amongst youth around the world. Since marketing strategy are based on the ways that the youth would be responsive to and this is same in both China and India and the U. S. is doing the same things.
There is a lot of opportunities for the US companies to work in these countries especially in targeting their youth as they are dominant in food, fashion, music and especially in technology. The companies should learn how to attract these sectors and also capitalize on their culture that surrounds this influence which I think would spark the loyalty of the youth.
References
Brown, E., Caverly, C., Goodman, J., Post, K., & Wong, A. (2016). Forbes India Magazine - The Race for China's Youth Market. Forbesindia.com. Retrieved 28 April 2016, from http://forbesindia.com/printcontent/30252
Shivakumar, G. (2014). India is set to become the youngest country by 2020. Retrieved April 28, 2016 from http://www.thehindu.com/news/national/india-is-set-to-become-the-youngest-country-by-2020/article4624347.ece
World Population Statistics. (2014). Population of China 2014.
