Friday, January 15, 2010

Travels to Tier X Cities


When marketers (and other lao wai) talk about China, they often speak of Tier I, Tier II, and Tier III Cities. There is no standard definition, really, for what makes a Tier II City. Generally speaking, Tier I means Beijing, Shanghai, and probably Chongching. It could include Tianjin, too, since that is a municipality like the other two, and so does not have a province around it.

Anyhow, a client interested in an aspect of personal care has asked us to visit Lin 'An and another smaller city in Henan. They call them "Tier III" Cities. Fair enough. Yet Lin'An is quite close to the richest city in China. Contrary to popular opinion, the richest city is probably not Shanghai. It is Hangzhou, the ancient city by the lake (these days, pretty much surrounding the whole of the lake!).

Marketers often look for a certain income group when they are doing consumer research. This makes sense. Manufacturers of consumer goods know that it pays to target their products and their messages to people who can afford them, or whose tastes or desires or daily life practices push (or pull) them to use their products. Why waste time trying to sell a Chevrolet to someone who is only interested in a Bugatti? Or why try to sell a Bugatti to someone really needs a used Dodge Dart?

But sometimes, a company will get the idea that there is a magical cutoff, some category of person that exists in reality who can be identified by income alone. This is rarely the case. So someone in Lin'An who is, in local terms, a "low income" person, may seem pretty well off in a small county town in Henan Province.

Jo Yung is on her way to Lin'An now. And she has some consumer research planned for the client. No doubt she'll be hanging around in streets like these.

(Thanks to Ben Ross, whose photographic and written documentary work is worth finding on the web, and who we have the pleasure of working with from time to time).

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