[Asia Economy Reporter Jang Hyowon] Zero to Seven is showing strong performance. It is interpreted that Zero to Seven, which sells baby products in China, has attracted attention due to news that China announced a series of cash-based birth promotion measures following a population decline last year.
As of 9:30 AM on the 21st, Zero to Seven is trading at 8,010 KRW, up 4.98% from the previous day.
According to the industry, the National Bureau of Statistics of China announced on the 17th of last month that China's population as of the end of last year was 1,411.75 million, down 850,000 from 1,412.60 million at the end of 2021. This is the first population decline in China since 1961, when the Great Leap Forward led by Mao Zedong caused a severe famine.
Accordingly, various regions in China are successively announcing cash support measures related to multi-child births. Yunnan Province decided to provide a one-time birth subsidy of 5,000 yuan (approximately 940,000 KRW) per child for families with three children meeting certain conditions starting January 1.
Changsha City in Hunan Province decided to provide a one-time childcare subsidy of 10,000 yuan (approximately 1,880,000 KRW) per child from the third child onward for families with three or more children, and Shenyang City in Liaoning Province decided to provide a monthly childcare subsidy of 500 yuan (approximately 94,000 KRW) until the third child turns three years old.
Zero to Seven has gained great popularity locally in China with baby skincare brand Gungjungbichek, favored by Chinese parents born in the 1980s and 1990s, known as the Balinghou and Julinghou generations, who prefer Korean baby products.
Although sales had slowed recently due to COVID-19, securities firms are forecasting that sales in China will increase again as China’s lockdown policies are lifted.
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