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China Population Policy: China, once the most populous country in the world, is now deeply troubled by the decline in birth rate. The number of youth in the country is decreasing and the population of elderly is increasing, which has become a big challenge for the Chinese government. To deal with this crisis, the Chinese government is imposing strict restrictions on contraceptive products in order to increase the population. The biggest blow to this aggressive decision of the government has been suffered by the world's number-1 condom brand 'Durex', for which the Chinese market has been shaken.

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Sudden decline in Durex sales

Durex, the famous product of British company Reckitt Benckiser, was ruling China as a monopoly for decades. But, according to the Financial Times report, Durex's sales in China have fallen by 5% in the first quarter of this year compared to last year. This is a big blow for the company, because last year the company had seen a growth of more than 40% in the same market.

Government is giving offer on having children!

Last year, only 79.2 lakh children were born in China, which is less than half of the 2015 figure. Taking this problem seriously, the Chinese government ended the decades-old 'one child' policy in 2016 and has now brought a new law to have 'three children'. Not only this, the government is encouraging people to have children by giving an annual subsidy of 3,600 yuan for every child under three years of age.

Increase in taxes and ban on advertisements

To increase the birth rate, the government has withdrawn the concessions given on condoms. The government has abolished the Value Added Tax (VAT) exemption available on condoms since 1993 from January this year. Now 13% VAT is being imposed on these products, due to which their prices have increased and sales have decreased. Apart from this, the Chinese government has also cracked down on online advertisements. China's popular video platform 'Douyin' has almost banned the live-commerce sale of condoms. Officials are no longer allowing products to be shown in live videos or luring customers with catchy slogans.

What did the company say?

Chris Licht, CEO of Reckitt Benckiser Company, has admitted that 'sales in the China market have been worse than expected'. He said that the new tax policy and restrictions on advertisements are the main reasons for this decline. However, the company hopes that this is a temporary phase and the demand for the brand has not completely ended. Overall, China's efforts to balance its population are bringing major changes in the global market.