Shanghai resident Sun Wenjing has to balance the wants of her children while buying gifts for the coming Chinese New Year.
"Although they can share toys, we have to clarify who owns the toy to avoid fighting, a sweet headache for having two kids," she said. The 33-year-old mother bought beads for her seven-year-old daughter and a LEGO set for her preschool son.
China has relaxed its family planning policy this year, allowing each family to have two children. For young parents like Sun, raising another child is far more than food supply.
According to Chinese family planning authorities, the two-child policy will add an estimated 3 million babies annually for a total of 17.5 to 21 million newborns each year in the next five years.
Most of the young parents were born after the late 1970s, when China's one-child policy took effect. Unlike their thrifty parents, young couples who were doted on as single children tend to spend free-handedly, especially for their beloved next generation.
Considering the strong consumption of these parents, economic institutions and retailers are optimistic about industries related to infants and children, such as baby products, amusement parks and education.
Leading U.S. toy retailer Toys'R'Us announced in January it would open more than 30 new outlets in China in 2016, considering it as one of the most important markets in its expansion plan. Currently the brand has 100 stores in 44 Chinese cities.
In Shanghai, Disney's first theme park on the Chinese mainland is set to open in June. According to the company, the project will attract 10 million visits each year, which will also help promote development of tourism, trade and retail in the city.
Sales of baby products, including diapers and formula powder, have also benefited.
According to a 2015 white paper on the baby product market released by consultancy iResearch, the total revenue for Chinese mother and baby products last year reached 2.3 trillion yuan, with an estimated growth rate of 10 percent annually in the future.
Online shopping platforms specifically selling baby products have mushroomed in recent years, such as muyingzhijia, beibei, mia and babytree. These platforms are expected to enter a golden age for development in the coming years, the white paper says.
However, compared with baby products, it is children's education that parents spend the most on.
Sun Wenjing said she pays 15,000 yuan per term for her daughter's private primary school and 2,500 yuan for her son's kindergarten per month.
She also registered her daughter for piano lessons and swimming classes. The total spent on her children's education exceeds 10,000 yuan every month, accounting for two thirds of the total family expense.
"I can't think of anything more important than education for my kids," said white-collar Zhang Yan in Beijing, a mother of two girls.
For Zhang, education means not only a decent school, but also cultivating interests and broadening her children's horizons.
"My daughters have dance classes, which they like very much. I would also like them to learn how to ride horses, a noble sport for them to look graceful," she said, adding travel is a must for the family every year.
The rising cost of raising a child in China may scare away some parents planning a second baby, but those who have decided to have another child will definitely offer the best they can afford for their children, said James Roy, Shanghai-based associate principal at China Market Research Group.
