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Targeting China's 2rd and 3rd tier Cities


Many multinationals focus on selling to consumers in glitzy metropolises like Shanghai and Beijing, where hulking skyscrapers punctuate the skyline. However, many overseas companies are making a mistake by targeting only these first-tier consumers and neglecting China's less developed cities. CMR MD Shaun Rein explains why savvy companies should target cities like Chengdu, Wuhan, and Chongqing as their engines for growth and profit in the coming decade in this thought leader piece in BusinessWeek.

*Consumers in less developed cities crave international goods to demonstrate their newfound wealth and express themselves just as much as those in first tier cities, and are increasingly able to buy them

*Growing markets are more shapeable. Consumers have less developed brand preferences, and ad revenue goes farther to win their hearts and business

*Skyrocketing real estate prices and rising rents in first tier cities have squeezed margins leaving restaurants and retail chains with little profit even if revenues are growing

*Second-tier cities offer a much better opportunity for companies seeking to acquire employees with relevant skills that stay with companies for the longer term

Learn why companies like L’Oreal and Daimler Chrysler know the value of acting now to establish presence in China’s second, third, and even fourth and fifth tier cities in the rest of this BusinessWeek thought leader position

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