Differentiating China's lower-tier cities

A study of almost 300 lower-tier cities across China reveals major differences in terms of culture, economy and development.

Why it matters

There’s no shortage of research about China’s tier-one cities – the likes of Beijing, Shanghai, Guangzhou and Shenzhen – but there’s more to the country’s other metropolises than tier numbers and income levels. Brands need to appreciate the lifestyles led in each and consider how to tailor their marketing accordingly.

An example from the the report Yangtze Reclassified: A Fresh Perspective on Chinese Cities, from Edge, the technology, data and insight team of Publicis Groupe, and reported in Campaign Asia, highlights the differences between two tier-three cities: as well as the 50% variation in disposable income between Huzhou (Zhejiang province) and Suqian (Jiangsu province), the former can be categorised as a city of ‘lifestyle indulgers’; Suqian, however, is seen as a city of ‘everyday traditionalists’.

Four consumer categories – and where they are

• Lifestyle indulgers are all about enjoyment, in the form of culture, food and fashion, and a life well-lived. This group makes up 16% of the population in lower-tier cities and are mainly located in the coastal provinces of the East. Brands can think about how they can create exciting experiences and boost social status.

• Future upstarters want a better future and an upgrade to their status, whether social, educational or financial. They account for 40% of the population in lower-tier cities and are mainly located in non-coastal provinces. They are trend followers so influencers can have a big effect on them.

• Community connectors are focused on family and community. They make up just 8% of the population in lower-tier cities and are mainly located in the north. Word-of-mouth in their network is the most persuasive form of marketing, and a strong and reliable brand will also help.

• Everyday traditionalists are conservative and risk-averse. They account for 36% of the population in lower-tier cities and are widely distributed in non-coastal cities. They want value for money from brands and look to experts for help when buying products.

The big idea

Lower-tier ‘lifestyle indulgers’ and ‘future upstarters’ are where brands are most likely to see growth.

Sourced from Campaign Asia [Image: Campaign Asia]