Durex Owner Reckitt Benckiser Taps Into China's Livestreaming Trend To Sell Condoms Online

Reckitt Benckiser Group RBGLY RBGPF is leveraging the popularity of livestream shopping in China to sell condoms, a move that could be challenging due to strict regulatory oversight.

What Happened: The British consumer goods company, which owns the Durex brand, is testing the waters of livestreaming as a sales channel for condoms in China, Reuters reported. This initiative is part of Reckitt’s strategy to expand its share of the $5 billion-plus condom market in China.

Livestreaming has been a driving force behind the e-commerce boom in China, generating sales of $238 billion in 2022. This figure is expected to exceed $300 billion by 2025, according to research firm eMarketer.

Reckitt has already experienced success with livestreaming household products in China. However, selling condoms through this platform may prove more challenging due to the stringent regulation of sex-related content online.

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Despite these challenges, the potential of the Chinese condom market is estimated to reach $5.2 billion in 2024, according to the China Business Research Institute. It is a compelling opportunity for Reckitt. The company currently holds a 40% market share as of 2020, according to Daxue Consulting.

“There is no clear definition of what vulgar content is – that’s up to the regulator to decide and the system is quite socially conservative,” said Kendra Schaefer, head of tech policy at China-focused research firm Trivium. “So how do you talk about sexual health without tripping the ‘vulgar’ issue? It’s a delicate line to walk.”

Arjun Purkayastha, who oversees Reckitt’s business in Greater China, stated that livestreaming accounts for a significant portion of the company’s sales in China. Reckitt began live streaming select Durex products on Douyin, the local version of TikTok, last summer and plans to expand its offerings in the future.

“It’s just a matter of time that we learn to do it in a classy manner without offending anyone” in China, Purkayastha said, according to the report.

Why It Matters: China’s population is aging, a trend that could potentially boost healthcare and wellness-related industries. China’s population is expected to have declined for the second consecutive year, with deaths surpassing births for the first time in over 60 years. This demographic shift is expected to drive increased demand for healthcare and wellness products, creating opportunities for companies like Reckitt.

However, the declining population in China has also been a cause for concern. Billionaire Elon Musk has warned of a potential global population collapse, citing China’s shrinking population as a significant risk to civilization. Best-selling author Jim Rickards has also warned of the disastrous consequences of China’s declining population, terming it an “epic collapse.”

Despite these concerns, China’s economy continues to show strong growth potential. A report from the Centre for Economics and Business Research (CEBR) suggests that China could become the world’s top economy by GDP as soon as 2037, with India also forecasted to experience significant growth.

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