Compared to first-tier cities, which have become a "sea of blood" of competition, the advantages of third- and fourth-tier cities are quite obvious.

01

Population base

From the first financial weekly released by China's city grading list shows that the country's third-tier cities there are 70, with a population of 2 million people; fourth-tier cities, 90, with a population of 1 million people; the fifth-tier cities more, 129.

Roughly estimated, the third, fourth and fifth tier cities will be a huge market with a population of more than 200 million. Analyzing only from the population size, the potential consumption capacity of the third and fourth tier cities is huge.

02

High Consumption Potential

McKinsey predicts that in the next ten years, the proportion of middle-class and affluent households in China's urban areas will increase dramatically, reaching 81% in 2022. Among them, the middle class from tier 3 and tier 4 cities will be the group with the largest increase in share.

Other data shows that since 2008, the income gap between residents of third and fourth-tier cities and residents of first- and second-tier cities has gradually narrowed, and some people even say that if price levels and housing costs are taken into account, the per capita disposable incomes of residents of third- and fourth-tier cities are no less than those of first-tier cities, or even higher.

For its part, Finance magazine predicts that the consumption of residents in third- and fourth-tier cities will quadruple from the 2017 level of 15 trillion yuan to 45 trillion yuan in 2030.

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