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After 90″ Return Home” Faucet Industry Sinks To Third And Fourth Tier Cities

Nowadays, the post-90s generation, with their “individuality, uniqueness and daring”, is becoming the main consumer force in today’s market. Under the combined influence of society and life, the young post-90s group, who used to be keen on first-tier cities, is sinking to third- and fourth-tier cities. People’s pace of life began to slow down, focusing on quality of life, the consumer market of the faucet industry also sank.

 

Consumer groups return to the consumer market sinks

In the context of the new normal of economic development, China’s urbanization process evolves towards urbanization, the role of large metropolitan areas is increasingly prominent, and the radiation of mega-cities to surrounding cities is gradually strengthened. According to Cai Jiming, director of the Center for Political Economy at Tsinghua University, there will be more than 10 mega-cities of 10 million people in China in the future, following the northern cities of Shanghai, Guangzhou, and Shenzhen. According to the data, since 2011, China’s population flow has been concentrated into mega-cities and megacities of its own choosing.

In the last two years, according to local demographics, there has been a slight increase in the resident population, but the foreign population has started to return, with Shanghai seeing a decline for the second year in a row and Beijing seeing its first decline in 18 years. First-tier cities have begun to control their population red lines, and people no longer emotionally pursue the life of a first-tier city. In recent years, the smog in Beijing has discouraged many people, and the shortage of workers in the service industry reached 170,000 in the first half of the year, and in Shanghai, which has more than 20 million permanent residents, the shortage is even more serious.

In recent years, the term “consumption upgrade” has been on people’s lips, driving the consumption level and local development trend of the entire region. With all kinds of online pop-ups being snatched up in seconds, there is data to show that the main consumption is concentrated in the region. Data show that the main consumer is concentrated in the under 35 years old, that is, after 80, 90 years of this consumer group. The post-90s consumer is on the rise, and is increasingly moving towards high-end products. And whether it is Taobao’s Double 11 or the recent 314 Girls’ Day, it is enough to see its main target for the 80s and 90s consumer like.

 

Huge consumption potential in third and fourth tier cities.

According to Ocean Terminal’s 2016H1 statistics, Tier 3 and Tier 4 cities have shown great consumption energy and bolder consumption. The growth rate of overseas shopping in third-tier cities is 108.65%, while the growth rate of first-tier cities is 77.57%. And among the top 30 overseas shopping “most daring to spend” cities, Tier 3 and Tier 4 cities almost occupy more than half of the seats.

The rise of consumption in Tier 3 and Tier 4 cities will become one of the most critical links in the consumption of goods and services over the next three years. As the employment environment in Tier 3 and 4 cities and towns improves, the local economy begins to experience a labor shortage. Wage standards in Tier 1 cities are much higher than in the average city, yet consumption standards are at the same level, and migrant workers are returning to seek local jobs.

There is a trend of people returning to the city. According to Ali Data, in recent years, the proportion of consumption in tier 5 and 6 cities during the Double Eleven period has been increasing. With the broadband price war of the three major carriers in the township market and the sinking channels of cell phone manufacturers, the consumer groups in the township area have gone from rejection to reliance on online shopping. First-tier cities are decreasing year by year, consumer groups choose more channels, offline international faucet brand stores.

The new retail strategy of e-commerce, channel providers and manufacturers online landing will fill the gap between urban and rural consumption levels and uneven over the years, and drive the rural market consumption upgrade. The sinking of the sharing economy model will inevitably bring an impact on the mindset of lower-tier cities.

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