Unlocking China’s Hidden Market: The Untapped Potential of Lower-Tier Cities

In the bustling metropolis of China, social media has emerged as a powerful tool for city marketing.

China is a kaleidoscope of cities, each vibrantly distinct in its flavour, ambition, and allure. In recent years, there has been a growing trend towards regional marketing, as cities seek to differentiate themselves from one another and attract their own unique mix of residents and businesses.

The country’s diversity mirrors its rich history and bold ambitions. Eastern China, with its cosmopolitan cities like Shanghai, serves as a hub of modern luxury. Tech hubs like Beijing and Shenzhen in Northern China blend ancient traditions with cutting-edge tech. Western China’s raw energy awaits growth and Southern China’s global outlook merges with local heritage, inviting brands to connect with the grand narrative.

To effectively navigate China’s tier-two markets, brands must weave a compelling story, prioritise cultural awareness and maintain transparency.

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How to enter China’s tier-two market?

Understanding local customs, traditions, and consumer preferences is crucial to build trust and establish a strong brand presence. Businesses should engage with local communities, collaborate with local partners, and demonstrate sensitivity to cultural nuances. Transparency is equally important, as Chinese consumers value honesty and openness. Businesses should clearly communicate their product offerings, pricing strategies, and business practices to foster trust and loyalty.

Prioritise cultural awareness and maintain transparency

Cities should focus on developing eco-friendly tourism practices, promote responsible consumption, and foster sustainable urban development initiatives. By integrating sustainability into development, cities can attract eco-conscious travellers, and lay the foundation for a long-term prosperous future.

Utilise local tech and global social media

China’s dynamic digital landscape offers a wealth of opportunities for businesses to reach their target audience. While global social media platforms like Facebook and Twitter are restricted in China, local platforms like WeChat and Weibo offer unparalleled reach and engagement. Businesses should integrate these platforms into their marketing strategies, tailor content to local preferences and utilise features like live streaming and e-commerce integration. Partnerships with local tech companies can provide access to innovative solutions, such as AI-powered customer service and data analytics tools, enabling businesses to gain a competitive edge.

Deliver products via local infrastructures

China boasts an extensive network of logistics and distribution channels, including express delivery services, e-commerce platforms, and offline retail outlets. Businesses should partner with established local players to ensure seamless product distribution, particularly in tier-two cities where consumer demand is growing rapidly. Additionally, understanding local consumer preferences for delivery options, such as same-day or next-day delivery, can further enhance customer satisfaction.

China’s tier-two cities stand at the cusp of a remarkable transformation. By embracing cultural sensitivity and technological support, these cities can evolve from tourism destinations into thriving centres of economic growth and sustainable development.

China’s Lower-Tier Cities: Where Ancient Roots Meet Digital Buzz

China’s lower-tier cities are rapidly developing, but they still retain their rich cultural heritage. Home to a growing number of tech startups and entrepreneurs, these cities are also at the forefront of China's digital revolution.

Here are some specific examples of how ancient roots and digital buzz are converging in these cities and brands are using technology to solve problems and improve the lives of people in these cities.

Chongqing Soars to No. 2 in China’s Trademark Registration in 2023

Chongqing has seen a surge in the number of registered trademarks in recent years. In 2015, there were 197,500 trademarks registered in the city. By the end of 2020, that number had jumped to 567,200, making Chongqing the second-ranked city in western China in terms of trademark registration.

This growth is being attributed to a number of factors, including Chongqing's growing popularity as a tourist destination. The city has been able to leverage its popularity to showcase its local products and brands to consumers from all over the country. This has helped local brands to gain a national following.

Another factor contributing to the growth of Chongqing's brand power is the rise of social media and live streaming. Chongqing is home to a large number of key opinion leaders (KOLs) who use social media platforms to promote local brands. This has been particularly effective in reaching younger consumers, who are more likely to use social media.

One of the most successful Chongqing brands is Jiangxiaobai, a baijiu company that has positioned itself as a game-changer in the Chinese baijiu sector. The company has been able to capture the trend in the younger generation by embracing their creative energy. This has helped Jiangxiaobai to grow into a national brand.

Chongqing is committed to building the brand image of "made in Chongqing." Local businesses are striving to maintain their creative and innovative edge in order to meet the demands of consumers and make Chongqing brands increasingly influential.

Zibo Sets Off Live Streaming Campaign to Promote Local Brands

Known as China's ‘capital of ceramics’, Zibo launched a month-long livestreaming campaign on June 6 to promote local brands and boost the sales of cultural products, including the city’s renowned ceramics and coloured glaze products as well as silk products.

The first online sale was hosted by Bi Rongqing, director of the publicity department of Zibo, and featured more than 40 products from over 20 enterprises. The show was viewed by about 4.56 million people, according to official data.

Bi said that the livestreaming show will reach more people and help them learn about Zibo’s competitive porcelain and coloured glaze industry as well as shore up consumption. The livestreaming campaign is expected to help local enterprises expand their sales and reach new customers.

Zibo’s Barbecue Boom: A Social Media-Fueled Phenomenon

Zibo also recently experienced a surge in popularity due to its barbecue scene. This boom can be attributed to several factors, including social media, government support, and the post-pandemic travel surge.

In March 2023, college students from other cities who were quarantined in Zibo during the COVID-19 pandemic shared videos of themselves enjoying the city's barbecue on social media. This sparked a trend, with young people from across the country flocking to Zibo to try its barbecued food.

The Zibo government has been quick to capitalise on the city's newfound popularity. They have taken steps to ensure food safety and reasonable pricing in the barbecue sector, and have also launched bus routes specifically for people visiting barbecue restaurants. Additionally, the city issued a notice ahead of the May Day holiday, warning hotels in Zibo that raised their room rates by more than 50% during the holiday would be punished.

The pandemic has led to a pent-up demand for travel, and Zibo's barbecue scene has been a major beneficiary of this trend. People are eager to travel and experience new things, and Zibo's unique barbecue offerings have made it a popular destination.

Some experts doubt whether the barbecue craze in Zibo will last long, but there is no doubt that the city has benefited from the increased attention. Zibo is now known by more people, and the city's economy has received a much-needed boost.

Shijiazhuang Tries to Replicate Zibo's BBQ Success with Rock 'n' Roll

Shijiazhuang, a city in Hebei Province, China, is trying to rebrand itself as the "Chinese capital of rock" in an effort to boost its economy and attract tourists. The city is taking inspiration from Zibo, a city in Shandong Province that became a viral tourist destination earlier this year thanks to its barbecue scene.

The centerpiece of Shijiazhuang's rebranding campaign is a three-month music festival called "Rock Home Town." The festival will feature a series of rock music concerts performed by high-profile artists from across the country. Local musicians are also encouraged to play impromptu gigs in public places, including parks, shopping centers, and even subway cars.

Shijiazhuang has a long and storied relationship with rock music. Two of the earliest and most influential Chinese magazines focusing on rock music, Popular Music (通俗歌曲) and So Rock! (我爱摇滚乐), were founded in Shijiazhuang. The city is also home to a number of well-known rock musicians, including Tián Rán (田然), the guitarist from Miserable Faith (痛仰乐队), and Zhāng Zhéxuān (张哲轩), the front man of Penicillin (盘尼西林).

Some experts doubt whether Shijiazhuang's rock 'n' roll rebranding will be successful. They point out that the city is not well-known for its rock music scene, and that the government may be hesitant to allow too much freedom of expression at the festival.

Despite the challenges, Shijiazhuang is determined to make its rock 'n' roll rebranding a success. The city is hoping that the festival will attract tourists from all over China and help to boost its economy.

Social Media’s role in China’s City Branding

In a country of 1.4 billion people, standing out from the crowd is no easy feat. But social media is giving cities a powerful tool to do just that. Cities are using social media platforms like WeChat, Weibo, and Douyin to connect with residents, promote their unique attractions, and attract tourists and businesses.

Hong Kong has emerged as a leader in social media city branding, ranking 41st in the world according to the Brand Finance City Index. The city’s strong social media presence is due in part to its active use of platforms like WeChat to connect with its large diaspora around the world.

Other Chinese cities are also using social media to their advantage. Shanghai, Beijing, Shenzhen, Chongqing, Macau, Guangzhou, Chengdu, and Nanjing all rank among the top 100 cities in the Brand Finance City Index. These cities are using social media to promote their unique strengths, such as Shanghai's financial prowess, Beijing's cultural heritage, and Shenzhen's technological innovation.

There are a number of social media strategies that cities can use to promote their brands. These include:

  • Create engaging content that showcases the city’s attractions and culture.

  • Using social media to connect with residents and address their concerns.

  • Partner with influencers to promote the city to a wider audience.

  • Use social media to measure the effectiveness of city branding campaigns.

Overall, social media is a powerful tool that can be used to achieve a variety of city marketing goals. As Chinese cities continue to grow and develop, social media will play an increasingly important role in shaping their future.

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Impact of City Branding on Economic Transformation in China

China's city branding initiatives play a crucial role in driving economic transformation across the country. Here’s a detailed breakdown of how city branding contributes to economic transformation:

  • Attracting Young Talent: Attractive city brands act as magnets for young and skilled professionals, providing them with appealing career prospects and a vibrant lifestyle. This influx of talent fuels innovation, entrepreneurship, and knowledge-based industries, contributing to a city's economic vitality.

  • Boosting Local Industries: City branding initiatives often highlight and promote local industries, showcasing their unique strengths and potential. This can attract investments and partnerships, fostering the growth of existing industries and the emergence of new ones. For instance, a city known for its manufacturing prowess can attract supply chain partners and technology providers, enhancing its industrial ecosystem.

  • Promoting Local Cultures: Embracing and promoting local cultures is a key aspect of city branding, attracting tourists and fostering a sense of pride among residents. Cultural attractions, festivals, and events can generate revenue through tourism, while also strengthening the city's identity and attracting talent with an affinity for its cultural heritage.

Credit: Visually

Seizing Opportunities and Sustaining Long-Term Transformation

To capitalise on the transformative power of city branding and achieve long-term economic development, Chinese cities need to adopt strategic approaches. Here’s a list of eight strategies that cities must embrace:

Authenticity and Consistency

Building a credible city brand requires authenticity and consistency in messaging and actions. Cities should showcase their true essence, aligning their brand promises with their actual capabilities and development plans.

Continuous Innovation

City branding is an ongoing process, requiring continuous innovation and adaptation to evolving trends and market demands. Cities should stay ahead of the curve by embracing new technologies, exploring emerging industries, and nurturing a culture of creativity.

Collaboration and Partnerships

Effective city branding often involves partnerships with local businesses, organisations, and communities. Collaborating with stakeholders can foster a sense of shared ownership and drive collective efforts towards achieving the city's economic transformation goals.

Data-Driven Decision-Making

Measuring the impact of city branding initiatives is crucial for informed decision-making. Cities should utilise data analytics to track performance indicators, evaluate the effectiveness of branding strategies, and make adjustments as needed.

Investing in Infrastructure and Quality of Life

Enhancing the physical and social infrastructure of a city is essential to support economic transformation. Cities should invest in transportation networks, public spaces, education, and healthcare to create a livable and attractive environment for residents and businesses alike.

Fostering a Culture of Entrepreneurship

Nurturing a supportive ecosystem for entrepreneurship can drive innovation and economic growth. Cities should provide access to resources, mentorship, and investment opportunities to encourage the development of local startups and businesses.

Embracing Sustainability

Incorporating sustainability principles into city branding can attract environmentally conscious businesses and talent. Cities should prioritise sustainable practices, such as renewable energy, green spaces, and eco-friendly transportation, to create a more sustainable and resilient economy.

Promoting Global Engagement

Expanding a city's brand presence on the international stage can attract foreign investments, partnerships, and tourism. Cities should actively participate in global events, collaborate with international organisations, and showcase their unique offerings to a global audience.

By establishing a strong and distinctive brand identity, cities can attract talent, businesses, and investments, leading to economic growth and diversification.

For more such in-depth insights, follow Comms8 where we help your brand expand into foreign markets.

At Comms8, we specialise in helping businesses leverage the power of city marketing in China. With our expertise, we can assist you in harnessing the influence of marketing strategies to enter China’s two-tier market. Contact us today to learn more about empowering your brand in the dynamic Asian market.

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