Instructions: Read the article then answer the questions below.

Chinas Me Generation

Changes in the world demographic environment have major implications for business.

For example, consider China. Thirty years ago, to curb its skyrocketing population, the Chinese government regulations limiting families to one child each. As a result, Chinas youth born after 1980 called balinghou or the Me generation by their elders have been showered with attention and luxuries resulting in whats known as the little emperor or little empress syndrome. As many as six adults, two parents, and four grandparents may be indulging the whims of each only child all 600 million of them (almost twice the entire US population). Parents with only one child at home now spend about 40% of their income on their cherished child.

Chinas Me generation, now ranging in age from newborns to their early 30s, is affecting markets for everything from childrens products to financial services, cellphone services, and luxury goods. For example, Starbucks is targeting Chinas Me generation, positioning itself as new kind of informal but indulgent meeting place.

Chinas one-child rule created a generation of people who have been pampered by parents and grandparents and have the means to make indulgent purchases. Instead of believing in traditional Chinese collective goals, these young people embrace individuality. Their view of this world is very different, says the president of Starbucks Greater China. They have never gone through the hardships of our generation. Starbucks is in sync with that, he says, given its customized drinks, personalized service, and original music compilations. In the US, most of Starbucks business is takeaway, says one analyst. It is the opposite in China. Young people go to Starbucks as a destination and spend hours there. They like to be seen as chic and cosmopolitan

Questions: 1. How will you characterize Chinas Me generation as customers? Explain. 2. How did the one-child rule affect the macroenvironment forces in China. Discuss. 3. How does Starbucks compare the American market with the Chinese market especially the Me generation? Explain.