Chinese companies that produce items for children are now starting to produce clothing for adults and pets as well.
The decline in the birth rate in China is a consequence of the one-child policy that was enforced from 1980 to 2015. Although the government raised the limit to three children in 2021, many couples are still not having babies. As a result, Yan Zhang, the CEO of NATUNAKIDS, a children's clothing brand in Shanghai, anticipates a decrease in sales over the next three to five years.
Customers are concerned that their favorite brands may face financial difficulties due to these changes in the industry. Experts are also predicting a challenging future for companies that specialize in baby products in China.
The problem of a declining Chinese birth rate is not unique in Asia. Japan has been struggling with a declining birth rate for years. The number of newborns fell to 799,728 in 2022, down 5.1% from a year earlier. This is the lowest number since record-keeping began in 1899.
In 2020, the birth rate in Japan was 1.34 births per woman, however the birth rate in China was lower at 1.28 births per woman.