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Insight: Publicis Groupe’s Yangtze Reclassified: a fresh perspective on Chinese cities

BEIJING, CHINA — EDGE, the technology, data, and insight team of Publicis Groupe, launched the latest Yangtze 2.0* report on Chinese consumers in low tier cities “Yangtze Reclassified: A Fresh Perspective on Chinese Cities.”

Knowing and understanding consumers in a fragmented China market has never been more important.

As the government commits to common prosperity, the economic divide between Chinese cities become less prominent. The market penetration and expansion into lower tiers has powered growth for brands in the past decade, and will continue to do so for the foreseeable future.

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In 2015, we predicted the blurring of lines between tiers, and this is even more relevant now, aggravating the complexity of city categorization. The difference between Tier 3 cities Huzhou (Zhejiang) vs Suqian (Jiangsu) are vast: culturally, developmentally, and economically. Their disposable income differs by 50%. Clubbing them under a single banner is unhelpful to making strategic decisions.

“Yangtze Reclassified: A Fresh Perspective on Chinese Cities” report shows that lower tier markets have their own unique lifestyle and culture. Their residents have access to the same benefits, products, and entertainment with high tiers and often without the high-intensity competition and the attendant pressures. As local city pride grows, the aspiration is no longer to reach parity with high tier cities but to cultivate thriving cities.

According to PacePanel, a Publicis proprietary platform, which covers 298 cities and over 94,000 samples in China, EDGE reclassified and uncovered a new perspective on Chinese low tier cities by intersecting lifestyle outlooks with economic ability. Low tier citizens are more wealthy, more connected, more modern than ever, “Reverse trending” is growing as low tier cities gain influence and drive culture.

Yangtze 2.0 divides consumers in lower tier cities into the following four main groups:

LIFESTYLE INDULGERS: Carefree life enjoyment

Supremely confident in their future and themselves, Lifestyle Indulgers are all about enjoyment: whether it is culture, food, or fashion, it is mainly about a life well-lived. Brands must prove their value to Lifestyle Indulgers. Whether optimizing their lives, creating exciting experiences, or bolstering their social status.

FUTURE UPSTARTERS: Pursuit of progression

Future Upstarters quest for a better future and an upgrade to their social, educational, or financial statuses. Influencers have an outsize impact on them, as Future Upstarters are trend followers and need to ensure they won’t get left behind.

COMMUNITY CONNECTORS: Family and community as the focus

Kinship is the Community Connectors’ comfort zone, and they seek security in their life. Belonging is everything, and maintaining interconnected social webs is a focus. Word-of-mouth from their network trumps all, but a strong and reliable brand goes far.

EVERYDAY TRADITIONALISTS: Contentment with the small joys in life

Everyday Traditionalists are the most conservative and traditional of all sectors. They look for the small joys in life, which means their goals are short-term and they are risk-averse. Above all, they seek value for money from brands and rely on the reassurance of experts to help them make the right choice when buying products.

To sum up, for future marketing in low tier cities, brands need to understand and analyze local consumers from a new perspective and choose the right way to communicate with them. This is where a growth in the potential of the Chinese market will emerge.

*Powered by big data, Yangtze 2.0 is an end-to-end insights and activation platform created for lower tier audiences and provides a unified and single view of China’s lower tier city consumers across 375 markets

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