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Smaller cities. Bigger rewards.

April 11, 2022 5-MINUTE READ

In brief

Accenture Chinese Consumer Insights 2022

"Neo-rational" consumers in lower-tier cities

70%

Seven out of ten survey respondents in lower-tier cities reported that their daily household expenditures account for more than 50% of their income.

90%

More than 90% of respondents in lower-tier cities disagreed with a paycheck-to-paycheck consumption mode—a higher proportion of consumers than in first- and second-tier cities.

50%

Only 50% of the respondents in lower-tier cities are willing to pay a premium for products exuding an upper-class vibe.

78%

78% of respondents in lower-tier cities consider a product’s design and appearance when making a purchase. For them, appearance supersedes price as a product’s most attractive feature.

70%

More than 70% of the respondents in lower-tier cities seek to experience and compare various products before making their final purchase decisions.

Four major trends in lower-tier cities

Online appeal

Consumers in lower-tier cities rely more on online channels. Social media and live-stream platforms are now key components of their consumption journeys.

The service potential

Product-related services before, during and after a sale have become increasingly important factors in the purchasing decisions of consumers in lower-tier cities.

Domestic brands shine

There is a tremendous opportunity for domestic brands that are able to give consumers in lower-tier cities what they want—namely, value for money and trendy designs.

Membership marketing has its rewards

Consumers in lower-tier cities value the practical benefits of offline membership programs and are easily motivated by small incentives.

How can businesses win in lower-tier cities?

Xun Zhang

MANAGING DIRECTOR – STRATEGY & CONSULTING, ACCENTURE GREATER CHINA


Right Chen Wang

DIRECTOR – STRATEGY & CONSULTING, ACCENTURE GREATER CHINA

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