China's county-level cities have consumption potential: report

11:14, October 15, 2009      

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China's so-called third- and fourth-tier cities - those at county level - will be most targeted in the future by domestic enterprises, investment agencies and international companies as they have great consumption potential, China Daily reported Thursday, citing a latest report.

The report, published by Bates 141, an Asian marketing communications network and part of WPP, one of the world's leading communications services groups, surveyed people aged 16 to 35 from eight Chinese cities at county level over the past two years.

The survey, entitled Approaching Consumers in China's Emerging Cities, said under the current situation of urbanization and modernization, consumption markets in the country's first- and second-tier cities, for example Beijing, Shanghai and Guangzhou, tend to be saturated and people's spending power would not be enough to support the country's economic growth.

There are more than 4,000 third- and fourth-tier cities in China. According to figures recently released by the National Bureau of Statistics, the retail sales of consumer goods at and below county level totaled 3.48 trillion yuan (497 billion U.S. dollars) in 2008 compared with 1.84 trillion yuan in 2004.

To comprehend the size of the market outside major metropolises, it is worth considering that Yichun, a Chinese clothing brand hard to find in big cities, took 8 billion yuan in sales in 2008, the newspaper said.

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