BRANDS CANT AFFORD NOT KNOWING ABOUT LOWER TIER CITIES IN CHINA

The rapid development and urbanization of China over the past few decades has brought significant changes to its population, particularly its youth. Lower-tier cities are home to 68.4% of the Chinese population. Third-tier cities have a consumption trend index of 121, which is higher than first-tier cities at 114 and second-tier cities at 110.

For local young consumers with houses and cars but much lower living costs, their incomes are more discretionary. Therefore, the consumption attitude of young consumers in lower-tier cities is not much different from that of young consumers in first-tier cities.
Specifically, they also have strong consumption needs and are willing to try new things, they are highly dependent one-commerce channels that bridge the gap between lower-tier and higher-tier markets. Moreover, short videos, and social media content have gradually become consumer touch points in lower-tier cities. Products recommended by influencers are well accepted.
Overall, the consumption trends in third-tier cities in China are driven by the desire for a better quality of life, as well as the increasing availability of products and services.

1. Online shopping

Online shopping has become increasingly popular in third-tier cities in China. With the help of e-commerce platforms, people can easily buy various products, including clothes, electronics, and cosmetics, without leaving their homes. This trend is driven by the convenience and competitive prices of online shopping.

2. Healthcare
With the aging population and the increasing awareness of health, healthcare has become a popular consumption trend in third-tier cities. People are willing to spend more money on healthcare products and services, such as health supplements, medical examinations, and fitness classes.

3. Entertainment
Entertainment is another consumption trend in third-tier cities. People are willing to spend more money on leisure activities, such as watching movies, playing games, and traveling. This trend is driven by the increasing availability of entertainment options, as well as the desire for a better quality of life.

4. Food and Beverage
Food and beverage consumption is also on the rise in third-tier cities. People are willing to spend more money on high-quality food and dining experiences. This trend is driven by the increasing availability of international cuisines and the desire for a better dining experience.

Stay tuned for more insights of China market and Chinese consumers...

 

Shanghai Wukong Integration (WKI) Center

上海唯氪市场营销中心

+86 574 27721008
lily.yang@wkichina.cn