Retail in Asia

In Markets

Lower tier cities offer growth in China

Marketers in China could benefit from responding to changing tastes in lower tier cities, which offer access to millions of households and CNY8 trillion (USD160 billion) in consumer spending, a study has argued.

According to a report from Ogilvy & Mather, the agency, some 200 million households in second, third and fourth tier cities currently fall into the "consuming class" in the world’s most populous nation.

While residents of the country’s four urban centres in tier one – Beijing, Guangzhou, Shanghai and Shenzhen – have a disposable income of CNY1tr per year, this rises to CNY8tr across tiers two to four.
 

(Source: Warc.com)