Friday, November 27, 2009

Japan’s “parasite singles” flat line spend is causing problems

I am glad it is not just the older consumers who are given strange and in the case of Japan's “parasite singles”, a most unpleasant name.

Today’s FT has an article about this group who are defined as being unmarried women and men in their 20s and early 30s living with their parents with, up until now, lots of dosh to spend on themselves.

Nearly half of Japan's single men and women between the age of 20 and 34 live at home.

Not only are the demographics conspiring to reduce the spend of this group, their absolute numbers declined 5% in the past year, but also they are losing the yen to spend as a result of Japan’s endless period of economic stagnation.

The result of this that sales of those highly priced European-made handbags, shoes and watches are tumbling. Of course none of this should come as a shock for those Japanese marketers who understand basic economics and demographics. Dick Stroud

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