In China, sales of pianos, which were considered a ‘symbol’ of middle-class families and an ‘essential education’ for children, have plummeted. As the economy is struggling to recover due to the poor real estate market, even the middle class, which once supported China’s rapid growth, is closing its wallets. There are significant concerns that this may lead to a vicious cycle of sluggish domestic demand and further economic slowdown.
As the Chinese population has decreased for two consecutive years due to the novel coronavirus infection (Corona 19) and the aftereffects of intensive quarantine policies, the young working population has decreased and the elderly population has increased, leading to the Chinese economy’s “early wealth” (before becoming rich) The crisis of ‘you grow old first’ is also becoming a reality. It appears that long-term economic instability factors are accumulating in China.
A piano store in Beijing, China, is displaying a ‘surprise discount’ and ‘half price sale’ sign. Weibo captureAccording to the Jimu Newspaper on the 17th, piano sales in China last year were only 30% of 2019 before COVID-19. In some areas, it has plummeted to around 10% compared to four years ago.
A piano store in Jinan, Shandong Province, an economically developed city, disclosed, “Until 2019, we sold at least 500 pianos a year, but last year we could not even sell 50.” In particular, it was said that only one unit was sold in December last year.
According to the China Musical Instrument Association, the operating profit of China’s largest piano manufacturer, Pearl River Piano, in the second quarter of last year (April to June) also decreased by 149.2% compared to the previous year. By early 2022, there were about 650,000 piano lessons and 25,000 piano stores across China, but about 30% had closed by the end of last year. Industry officials complained, “China’s entire piano industry is on the verge of collapse.”
Piano sales in China have increased rapidly since the mid-2000s, when rapid growth of 8 to 9 percent was common. The middle class, whose income increased due to rapid growth, began to learn musical instruments, and the piano was especially popular. In 2008, education authorities also introduced a system that gives additional points to students who play the piano above a certain level in the middle and high school entrance exams.
From 2017 to 2019, the number of people learning piano in China reached approximately 40 million. At that time, annual piano sales were 400,000 units. During the same period, it was more than 13 times more than piano sales in the United States (30,000 units).
With COVID-19, this boom has completely disappeared.
Some analysts say that the decline in piano sales in China is not due to the middle class temporarily locking up their wallets. This means that the number of children who once sparked a craze for piano and other classical music lessons is decreasing.
In reality, population decline and aging are serious. According to the National Bureau of Statistics on the 17th, last year, China’s birth population was 9.02 million and the number of deaths was 11.1 million. Accordingly, the total population last year was 1,409.67 million, a decrease of 2.08 million from 2022. China recorded its first population decline in 61 years since 1961 in 2022 statistics. This decline continued for two consecutive years. In particular, the number of newborns fell below 10 million for two consecutive years following 2022 (9.56 million), leading to population decline. Some believe that if this trend continues, it will not be long before the population falls below 1.4 billion.
The proportion of the elderly population increased and the working population decreased. The proportion of people aged 65 or older in the total population increased from 14.9% in 2022 to 15.4% last year. On the other hand, the proportion of the population of working age (16 to 59 years old) was 61.3%, down 0.7 percentage points from a year ago.
The National Bureau of Statistics announced that China’s economic growth rate last year was 5.2%, achieving the government’s target of ‘around 5%’. However, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on the 15th, “China must actively respond to demographic changes and international trust issues,” and added, “If fundamental structural reform is not achieved, this year’s growth rate may fall below 4%.” “He warned.
Beijing =
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.