Small-town and rural market of China

When talking about China, most people would think of 1st tier cities like Beijing or Shanghai. Some may know 2nd tier cities like Tianjin or Chongqing. However, the majority of the Chinese population lives outside the 1st & 2nd tier cities. This part of demography has a vast business opportunity. Here are some characteristics of this small-town and rural market:

1. Price sensitive Consumers in this market are price sensitive. They are more willing to download apps or participate in promotional activities that can get extra money or discount.
2. Education Education has a high priority for families with children in this market. For example, a family with a monthly salary of RMB5,000 is willing to give RMB20,000 for the kids to have a potential development class. Education-related products have great opportunities in this market.
3. Scattered leisure time While most jobs at 1st & 2nd tier cities have 2 days off per week, it’s common in lower-tier towns to have only 4 days off per month. Thus, things that require a large amount of leisure time to do, e.g. travel, is extravagant.