China's Condom Market Opens Up For LIG's Durex

Given China's huge 1.3 billion population and its restrictive laws onthe number of children couples are allowed (ie one), it is a huge contraceptive market. And early this month, the government changed tactics opening, for the first time, its condom market to foreign companies.

As things stand, the preferred method of contraception in China is sterilization, despite the fact that condoms are given out gratis. However, local products are seen to be of poor quality, and it is thought that with the growing affluence of the Chinese population, people will be ready to pay themselves for better-quality, more reliable contraceptives.

Among the first to benefit from the Chinese change of legislation is the UK-based London International Group, the manufacturer of the world's leading condom brand, Durex. Reportedly, after two years of talking to the Chinese authorities, LIG has now signed a $7 million 50/50 joint venture deal with Qingdao Latex Company to start producing condoms in that country. LIG has said it will be applying standard western quality control systems to the venture.