I hope this newsletter finds you well.
As you know, Asia is facing a demographic crisis. The region's birthrates are declining, and this is having a major impact on businesses.
In this newsletter, I will discuss the implications of declining birth rates for businesses in Asia. I will also share some tips on how businesses can adapt to this changing demographic landscape.
The Impact of Declining Birthrates on Businesses
Data and statistics:
Shifting consumer demand:
Increased government spending:
How Businesses Can Adapt to Declining Birthrates
Tips for businesses:
Chinese Invade Japan for the First Time in Three Years
While Japan’s Prime Minister Kishida was in the US for a summit with Korea and the US, the Chinese were preparing an invasion of the Japanese Isles. Yicai Global, a Chinese media site in English, reported on the first Chinese group tour to land in Japan since the pandemic cut off travel in 2020. Group tour travel to Japan from China was reinstated on August 10, and air tickets to popular destinations in Japan sold out the same day.
On the same day, Beijing allowed travel to South Korea, Australia, and the United States. There has been some question as to how much demand for travel there will end up being to Korea and Japan, given the hiatus, the weak economy in China, and geopolitical rumblings, but if the first group’s arrival is any indication, pent-up demand is high.
According to numbers from the Japan National Tourism Organization, some 10.7 million tourists traveled to Japan in the first half, of which 600,000 were from mainland China. This is small compared to 2019, when Japan received 31.8 million tourists, of which 30 percent came from mainland China, but the fact that 310,000 tourists came from China in July alone, it is easy to see the ramp up.
Having said that, ramping up won’t be so easy. ANA and Japan Airlines only served China with 35% and 55% of the flights available, respectively, in 2019.
In conclusion, declining birth rates are a major challenge for businesses in Asia. However, by taking steps to adapt to this changing demographic landscape, businesses can position themselves for success in the years to come.
If you are a business leader in Asia, I encourage you to take the time to learn more about the impact of declining birth rates on your industry. By understanding the challenges and opportunities, you can make informed decisions about your business's future.
I also encourage you to share this article with your colleagues and network. Together, we can help to raise awareness of this important issue and build a more sustainable future for businesses in Asia.
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Article originally published in Steve's LinkedIn Newsletter HR Asia August 21, 2023