The report, ‘China Beyond’, focuses on the lifestyles and consumption habits of people in fourth-to-sixth tier towns. It highlights the differences not only between urban centres such as Beijing and Shanghai but also between middle-tier towns.
Areas for marketers to consider include the influence of migrant labour and nationalism; a lack of technological understanding among youth; the role of counterfeit brands; the rise of hypermarkets and convenience stores; and improved distribution facilities.
The study highlights the need for an education process to unlock consumer spending. It urges brands to acknowledge and take advantage of local diversity and to develop compelling in-store experiences if they are to succeed in such markets.
“The purpose of our research was to uncover vivid tales about small-town life that would possibly inspire our creative partners to tell brand stories and design experiences that could potentially transform and enhance the lives of consumers while generating new business opportunities in these seldom explored markets,” Kunal Sinha, executive director of Discovery, Ogilvy’s consumer insights unit for Greater China, said in a statement.
The study was conducted through in-depth interviews with families, retailers, wholesalers, and individual young people in lower-tier markets across China.
