Mei Fong, Pulitzer Prize-winning journalist, has spent much of her career investigating the effects of China’s one-child policy. Enacted in the 1980s, the policy was established in the hopes that it would lift the economy. Two years ago, the policy was relaxed, and couples are now allowed to have a second child, but what has this done to consumer markets?

While Fong points out there has been an effect, she doesn’t believe it will be lasting, and any repercussions from the policy will likely be counteracted by shifts already in the making. “Every relaxation they’ve had in the past has not had much impact. The share prices of some kinds of goods, like diapers, shot up at first, but it’s actually a lot of hype,” Fong tells J. Walter Thompson Intelligence.

Below are some key points on the policy relaxation, according to Fong:

• As far as the luxury market, Fong doesn’t expect it will have much of an impact. “You aren’t making a decision to have a second child based on whether you can afford two Louis Vuitton bags or not,” she points out.
• The biggest effect will be seen in the middle-class market, pertaining to food and education. “In terms of education, maybe if you have two children, you may not be able to afford an overseas college education.”
• Gender imbalance will continue to be a big issue in society. “This is reflected at the bottom end with men who can’t find wives and at the top end with educated women who want to marry up, but can’t. These are the ‘leftover women.’ Brands play on this anxiety,” Fong explains.
• The elderly market will likely see a big rise, with more money going into medicine, health care, and nursing care.

To read the full story, go to JWTIntelligence.