It's All about Retail
Nov. 19th-21st,Shanghai, China

Small town youth shape the new pattern of consumption

Look at the area first. Statistics from the National Bureau of Statistics show that at the end of 2017, the countrys urban resident population was 813.47 million, accounting for 58.52% of the total population (the resident population urbanization rate). According to Liang Jianzhang, a professor at Guanghua School of Management, Peking University, and Huang Wenzheng, a senior researcher from China and Globalization Think Tank, the population of Shanghai-Hangzhou, Guangzhou-Shenzhen and Beijing-Tianjin metropolitan areas in 2017 was about 15.92 million; Nanjing, Wuhan, Chongqing, Chengdu The population of 20 major cities is about 183.86 million, which is about 330 million. Based on this calculation, the total population of small cities such as the remaining three or four lines is about 1.4 times that of first- and second-tier cities. In other words, there is a consumer market with more total and potential. Morgan Stanley expects Chinas personal consumption market to double from the current $4.9 trillion to $11.8 trillion by 2030, with two-thirds of the growth coming from third- and fourth-tier cities.
Look at the age group. According to data released by the Ministry of Culture and Tourism, during the “May 1st” holiday, the country received 147 million domestic tourists, and the “90s” accounted for 35%, an increase of 8%. In the high-standard service of booking theme hotels, boutique hotels and specialty homes, the “90s” also accounted for a large proportion. “More confident and more willing to improve the quality of life through consumption”, when the “post-90s” with new consumption concepts gradually become the mainstay of consumption, the consumption pattern of small cities is expected to usher in new breakthroughs.
“The current income of young people in small cities may not be too high, but they are more interested in quality and personalized goods and services, including 90s and after 00, which constitute a market with good growth.” Zhao Ping said that many domestic brands have focused on the market segment and continue to meet the high quality demand in the consumption upgrade.
"5 to 10 years ago, deep-cultivation of third- and fourth-tier cities is a high-cost, low-income thing, and now the income will increase rapidly with the growth of third- and fourth-line youth consumption demand. Enterprises should pay attention to reducing costs and innovating business models. The state should also continue to promote economic and cultural exchanges between regions, guarantee a fair and just business environment, and encourage the development of third- and fourth-tier cities," he said.