Alice China
Condom Sales Increase in China under the Influences of International Financial Crisis
Some industries, however, are opposite under the circumstances of international financial crisis. The condom industry is just a example in case.
Many foreign media have also paid attentions to such phenomenon. It is reported that many couples tend to enjoy the romantic night under the financial crisis, greatly propelling the condom sales. Taking the online retailer Ocado for example, the condom sales were increased by 60%. A South Korean media also set out the sales comparisons, the condom sales amounts in 3,300 stores were increased by 19.3% of the same period in last year.
Chinese condom market is the same. According to the market research of China Research and Intelligence, the various condom sales volumes did not cut down but increase in the supermarkets and stores in Shanghai, Hangzhou and Beijing etc from the latter half of 2008, which seems to prove a statement that the financial crisis makes the over-pressured couples who have holes in their pockets more depend on each other. In addition, many youth couples postpone their family planning. When many industries are in recession successively, the condom sales, however, rise against the tendency.
According to the research of China Research and Intelligence, in 2008, the condom sales volumes in Chinese market were about 6.3 billion, exclusive of the 1.7 billion government procurement for family planning. It is predicted that the social retail volumes will be reach to 5.5 billion in 2009. In 2008, the condom sales amounts in China were about 530 million USD, which will increase to 600 million USD in 2009.
According to the research of China Research and Intelligence in Shanghai, the prices were reduced in many high quality condoms, such as Durex and Okamoto, so as to prevent the consumers to buy the domestic low-price condoms with the influences of international financial crisis. For example, Okamoto condoms, the previous average sales price exceeding 10 to 15 Yuan (1.4 to 2.1 USD) per condom, were sold at 8 Yuan (1.16 USD) per three condoms when promoting in a supermarket of Shanghai in April 2009. The domestic condoms, sold at low price in the previous time, also adopted the promotion strategies of price reduction and giving gifts etc.
Many fashionable youths even buy the lower price condoms from the famous B2C and C2C websites. According to the interviews to Chinese famous C2C E-commerce platform Taobao, an amateur dealer in Shandong sold out 1520 packages (18240 condoms) from 1st to 10th April, the products covering Double Butterfly, Tulip and Gobon etc. The lowest price is 6Yuan per package (12 condoms in). Many consumers buy ten packages or more one time.
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About the Author
Based on the database, Interviews and research methods from China Research and Intelligence, CRI analyzes the development and opportunities in this industry clearly.
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