Indian and Chinese Youth Economies
Johnny R. Huffstutler

BUS330

April 7, 2014

China and India are two of the largest countries in the world, both having a very large youth market. India for a number of reasons could be seen as being approximately fifteen to twenty years behind China in terms of age when it comes to averages of their work force (Devonshire-Ellis, 2013). There are trends in both Chines and Indian markets that emulate some US economic trends, but one of the common characteristics seen in India and China in today’s youth markets is a sense of individuality that is comparable to that seen in many members of Generation Y here in the United States.
Some of the products that seem to strike a chord with youth markets in India and China, much like the US are automobiles, personal electronics (phones and tablets) and in many instances, designer clothing. From a marketing perspective, there are some similarities between the youth markets in China and India which resemble the youth markets in the US, such as online shopping and anything to speed up the shopping process. Cookie cutter approaches that are seen here in the US are not likely to be successful in Indian and Chinese markets. (Brown, 2011)
Some of the factors that come into play that differ between China and India from the Macro perspective, are apparent due to the differences in types of government. India is often considered the world’s largest democracy, while China is still under communist rule and the most visible difference is not tied to the consumer as much as it is the fact that many companies in China are still State Owned Enterprises (SOEs). (Devonshire-Ellis, 2013) China tends to be much more receptive to investing in commodities, where Indian companies and investors tend to be willing to invest in anything that shows the potential to make profit, resulting in additional growth potential in India.
The Chinese government falls directly into the picture as an Actor in the Macro environment (White, 2012), controlling the majority of the companies operating in China which limits to an extent competition. India on the other hand has a broader opportunity for competition, helping to drive down the price of products and ultimately providing more opportunity to the consumer.
Other factors that have to be considered in youth markets are regional factors, such as attitudes that exist in local areas or other regions in these countries. There are some items such as jeans such as Levis that are considered desirable because they are considered iconic in many bigger cities in China such as Beijing and Shanghai. Owning or desiring these same items in some more rural areas of China may be viewed as wasteful, even unpatriotic, choosing to purchase items made abroad over Chinese made products that are functional. The need for fashion is seen simply as waste. (Wharton, 2011)
One issue that is somewhat unique to China that effects the way the youth markets have to be viewed is China’s one child policy. A result of this policy is a child that has a lot of attention and expectation heaped upon him or her. (Wharton, 2011) In India and the United States, it is still common to have more than one child, but this policy which has existed since 1980 has resulted in single child families, whose single children grow up and have another single child. This means one child will have 2 parents and four grandparents who they have to share with no other siblings. There is no shortage of people being born in China, but the one child policy has allowed the young generation of China to have higher expectations in many instances. Marketing campaigns focusing on China’s youth generation have to focus on a group that is accustomed to being paid a lot of attention to.
There are a number of successful US based companies that have already had success in both Indian and China such as Coca Cola and Pepsi and Ebay to name a few. Both Pepsi and Coca Cola are global and well established and are likely to weather issues and grow along with respective economies. Ebay has been very successful for years in both China and India, with a model that works again on a global level. Amazon is relatively new to both the Indian and Chinese markets and I would expect that they will begin to see growth in both of these markets, with the ability to provide another outlet for younger generations to shop online. (Gulati, 2013) A key takeaway when comparing international markets, isn’t so much attempting to simply judge products that are successful in one market and assume that they will be successful in another. The same levels of research should go into marketing of products, taking into account that cultural differences may exist that will ultimately affect the success of failure of some products. Social Media and the use of technology are factors that allow companies to conduct research on an international level resulting in quicker feedback than seen in years past.

References:
Devonshire-Elllis, C. (2013, July 22). Why India is Winning the Entrepreneurial Battle with China | Fair Observer°. Retrieved from http://www.fairobserver.com/article/why-india-winning-entrepreneurial-battle-china

Brown, E., Caverly, C., Goodman, J., & Post, K. (2011, August 16). The Race for China’s Youth Market | Thunderbird School of Global Management. Retrieved from http://www.thunderbird.edu/blog/faculty/washburn/2011/08/16/enovate-china-youth-market

White, S. (2012). Principles of Marketing (1st ed.). San Diego, CA: Bridgepoint Education, Inc. Retrieved from https://content.ashford.edu/books/AUBUS330.12.1

Gulati, A. (2013, August 7). Why Amazon Is Still Struggling in India and China Retrieved from http://beta.fool.com/ashit04/2013/08/07/amazon-not-so-amazing-international-operations/42478/