Consumption "Sinking" Three Or Four Line Cities Into "Potential Stocks"

Before we mentioned the first tier cities, everyone would think of Beijing, Shanghai and Guangzhou habitually, but now far more than that.

When the consumer market of Beijing, Shanghai and Guangzhou is gradually saturated and the consumption power is not enough to support the economic growth of China as a whole, the three or four line cities represented by county-level cities have gradually become the market that local enterprises, investment institutions and even multinational corporations have high hopes and are trying to exploit.

And some businesses are turning ads to three or four tier cities.

In fact, in the three or four tier cities, there have been many large sales brands, such as YISHION, Muse, and Semir.

Their production line is in the three or four line city, their product renewal quickly, guarantees the quality, has become the substantive big brand.

Last year McKinsey had a research report on China's urban consumption, which shows that in today's economic environment, when enterprises implement the market strategy, if they still take "this is for the first tier cities, this is for the second tier cities" this way is not very precise.

Take the brand LOTTO of Italy as an example. The areas with better sales performance include first-line cities such as Beijing, and cities like Henan and Anyang.

If the traditional concept is described, is a city like Anyang a tier one city?

This is certainly not part of the traditional concept of the first tier cities.

It can be seen that the standard of judging enterprises has changed now, paying more attention to the consumption habits and consumption mindset of a certain city, as well as the growth rate of consumption in this city.

From an enterprise perspective,

For enterprises, emerging cities are not another class, but "another world" and "another person". They have psychological driving factors which are completely different from the consumers in the first tier cities.

What is the difference between them and the consumer groups in the first tier cities?

We have to mention that the way of measuring the value of consumption is based on four main points: rational interest, psychological cost, use experience and emotional added value.

They are used to weigh the value of consumption from the perspective of rational interests, and at the same time, pay a careful and rational attitude to calculate the cost repeatedly, expecting to exchange the maximum return with the least effort; using experience is the vane of consumption value, and also the most important factor to stimulate word-of-mouth and loyalty; the added value of emotion is more from the post verification and experience of advertising.

As McKinsey's global director partner and Max Magni, the head of the consumer goods consulting business in Greater China, said, "I think the three or four line city's consumption or disposable income may be stronger than a second tier city, better than we think.

The large purchase of many consumers in the three or four tier cities is often a primary consumption, not a replacement consumption. Therefore, it is particularly important for enterprises to seize their hearts in the three or four tier cities when consumers spend their first time.

What can be explained by this case? It is very clear that three or four tier cities are pleasantly surprised.

Does this indicate that the Chinese market is facing a new round of consumption upgrading, which is more profound than the first round of consumption in 1998?

With the continuous growth of income, a large number of towns, rural areas and small and medium-sized cities are rapidly emerging as new cities, laying a solid foundation for the upgrading of consumption. The residents of these cities will continue to reach the next critical point of consumption upgrading and start to release huge consumption potential.

People here have changed from showing off their wealth to appreciative ability. They know better how to use wealth to show their distinctive taste and inner control.

Their consumption motivation is changing. More and more consumers are turning to improve their quality of life. They are more proactive, more courageous, try to find new experiences, enjoy life, show themselves, and pay more attention to the significance of consumption to their lives.

These different consumption motivations, which are totally different from the essence, have led to totally different marketing modes for the emerging urban consumers. From the brand building, the channel strategy to the communication mode, a completely different rule is needed.

If we say that in the first tier cities, the most important function of brands is to solve the anxiety of consumers and let them satisfy the current situation. In emerging cities, brands provide consumers with help to experience their yearning life step by step, but they do not pay too much cost.

It can be seen that brand building in emerging cities must really penetrate into their lives, discern their psychology, and build them up for success.