Posts Tagged ‘buying behavior’

On the road again…..we were privileged to attend the AMSRS in Sydney, Australia last week.  It was the first joint conference with representatives from the Asian ring associations.  It was the furthest we have traveled in our “miles of smiles tour”.  After the interesting and enlightening conference in Switzerland I wondered how Australia would compare.  I needn’t wonder for long.  The purpose of these trips, simply put, is to increase business.  In doing this we also get to hear and see what is new in our industry and rub elbows with old friends.   The real bonus is to come away with a WOW.  I got that WOW in Australia.

We were in attendance for a presentation entitled “Touch the very end of the China Market.”   China, one of the world’s oldest civilized countries has changed tremendously in the past years.  The presenter Theresa Wei Yanfang was discussing how Chinese markets are divided between urban and rural areas.  Populations in the rural areas are high and the growth rates are stable.  These rural areas will be the markets of great potential in the future.   The presentation was in the Q and A phase when the WOW came: The Most Profound Question We Ever Heard was asked.

We were a few rows back from a Chinese woman who seemed to quiver as she asked the question.  She seemed emotional and frankly a little nervous as she began to speak:  “I see the young of our country spending money with great affluence.  How do you believe the single child household rule will influence their buying behavior in the future?”  She sat down.

I felt a cool silence in my heart… and in the room.  At first I had no reference point to understand her question.  I had a vague recollection in the back of my mind but that was overcome by an ache of ignorance.  I knew I should know what she was referring to but couldn’t remember what I was missing. 

Theresa, somewhat junior, looked up at a senior speaker in the audience.  He started slowly as he respectfully commented on how critical a question had just surfaced.  “Yes,” he explained.  “Our children are unique children.  They come from young families with often two generations still earning wages.  Often, these families are economically advanced. There are six wage earners for each child.  The children are raised in a privileged world, they know nothing of work, and need the essence of work explained to them.  With six wage earners to support them they can afford luxuries and have no sibling to split the largesse with.”

I later learned that China’s one child policy was established in 1979 to limit the population growth.  The government of China will continue with the one child policy through 2010 and possibly indefinitely according to the State Commission of Population and Family Planning.   There are some special provisions that allow some couples to have two children legally, but by and large, fines, pressures to abort, and even forced sterilization accompanies second pregnancies.   

There can be no more profound question in a marketplace or at a market research convention.  A privileged class has been born.  I was so ignorant that the earth shattering legislation that had shaped the lives of generations in the world’s most populous country had escaped me.  I could not remember it existed no less understand its impact.  And the impact will not only affect the buying behaviors of China.  The long term effect of an estimated population reduction of 300 million people over the first twenty years is staggering. 

I have a lot to learn.