Consumer research

Definition of new sinking · map of urban media consumption in China

The following is the Definition of new sinking · map of urban media consumption in China recommended by recordtrend.com. And this article belongs to the classification: Consumer research.

With the changes of the international situation and the international epidemic situation, the domestic economic planning tends to the development mode of internal circulation and internal and external double circulation promoting each other. In terms of policy, the new urbanization strategy promotes the flow of population to large and medium-sized cities and even small and medium-sized core markets.

In terms of productivity, the international epidemic has led to the stagnation of overseas manufacturing and accelerated the upgrading of domestic industries to high-end. Today, the high-end manufacturing industry is cultivating a “new consumption driver” different from high-speed white-collar workers. “New consumption drive” promotes the “weight upgrading” of consumers in the sinking market. They will affect the future consumer market in terms of public opinion, media and consumption choices. It is very important for brands to understand the sinking consumer market and tap the potential market demand. In this issue of through train, analysts will bring the thinking of city classification of GroupM think tank.

The main observations are as follows:

Considering the five dimensions of market scale, consumption capacity, transportation and logistics, social culture and media consumption, the new city classification divides more than 2000 cities in China into 10 city groups: for brand marketing, the introduction of the five dimensions comes from market considerations on the one hand, and marketing contacts and content on the other.

From a market perspective

Market scale: the average market scale steps down, but the population flow will bring changes in the future scale, and the intermediate potential market will usher in more dividends: the market scale determines the consumption volume of the city. The current situation and recent potential are important considerations for brands to choose the direction of market expansion and development.

Consumption ability: the overall consumption focus shifts from basic consumption to self pleasing and symbolic demand. The consumption of self pleasing in low and medium consumption markets increases rapidly, and the proportion of symbolic consumption in high consumption markets is high: combined with the per capita consumption ability and Consumption Willingness of the market, different consumption patterns in each market have different maturity and adaptability for different consumer categories.

Transportation logistics: transportation logistics not only determines the accessibility of the end of the consumption link, but also affects the channel choice of end users: with the increase of railway business and highway logistics, the online shopping index of low consumption market has been improved more rapidly. Consumer behavior and the development of e-commerce platforms interact. With the rise of social e-commerce platforms, online post purchase sharing behavior in low consumption markets is strengthening.

From the perspective of marketing contact and content

Media consumption: the change of media consumption behavior and the development of media platform influence each other. The difference of media high line and sinking strategy makes the catalyst characteristics of different markets and the difference of media consumption trend still amplify: in digital media, the low consumption market has high trust in private e-commerce and content grass advertising, but the contact degree is very low. In traditional media, especially outdoor media, consumers’ media preferences at all levels of the market vary greatly, which is closely related to local life.

Social culture: the content preference is influenced by the regional market culture, and the play content preference is closely related to the local development cycle and industrial structure: relatively younger industrial city groups prefer youth plays, early mature undeveloped markets prefer history and red military.

Taking the brand marketing strategy as the goal and comprehensively considering the market scale, consumption capacity, transportation and logistics, media consumption and social culture, the city is classified

For brand marketing, market consumption scale is an important indicator. However, even under similar consumption scale, there will be city groups with different consumption forms. Therefore, more dimensions are needed to distinguish the attributes of cities. We quantify the consumption power, market scale, social culture, transportation logistics and media consumption of thousands of cities in China, in order to help brands clarify China’s vast market and find further penetration and expansion of brands. Considering the five dimensions comprehensively, 2198 cities (except municipal districts) in the Chinese market are subdivided and divided into 10 city groups in total.

For brand marketing, the introduction of the five dimensions comes from market considerations on the one hand, and marketing contacts and content considerations on the other hand. After we divide Chinese cities into ten levels, from the perspective of market consumption power, they can be divided into high consumption market group, medium consumption market group and low consumption market group. Later, we will look at the differences of various consumption forms, media, channels and content between and within different consumption power market groups.

The scale of market consumption steps down, and the future potential is closely related to population mobility

The city scale represents the consumption level that can be carried by the market as a whole. From the current situation, the consumption level of each market steps down in the urban classification of GroupM, and there is an obvious gap between the head Market and the middle waist market. However, the consumption growth potential is closely related to the attractiveness of the local population. Under the control of the head market population, the growth rate is relatively slow. The middle waist market is constantly attracting the upstream and downstream population due to policy dividends, development prospects and other factors, such as Foshan City in T3 and Guiyang City in T5. The resident population has met the growth rate of 6% in recent five years, which is much higher than Shanghai City in T1. At the same time, we also see that the representative market of T7, Xining, is still less attractive to talents. Therefore, the middle waist market has become the future consumption potential market.

The focus of consumption shifts from basic consumption to self pleasing and symbolic demand

With the international situation and China’s economic development, the overall consumption structure of China’s consumer market has changed significantly in recent five years. The proportion of daily consumption is lower than that of the original basic consumption. In 2018, the middle line of consumption will shift to non essential self pleasing consumption with a certain consumption threshold. After entering 20 years, the proportion of Yueji consumption is still maintained at 47%, and the whole is further transferred to symbolic consumption representing identity.

The pace of change is different in different urban groups. The consumption of Yueji in the medium consumption market increases rapidly, and the proportion of symbolic consumption in the high consumption market is high

Different from the overall consumption changes of the whole country, from 2016 as the starting point, the consumption stages of each city group are different. Affected by the market within five years, the change range of attitude towards consumption is also different. With the increase of income, basic consumption has advanced to self pleasing consumption and symbolic consumption, which also brings the enhancement of personal awareness. The continuous strengthening of awareness, reverse catalysis, and further pleasant consumption growth. In the medium and high consumption market, consumers pay more attention to personal needs, while the attention of the low consumption market has increased, but it is relatively low.

With the high consumption market, consumers have already been satisfied with basic consumption. In addition to pleasing their own consumption, the demand and growth of symbolic consumption are more significant. With the increase of consumers’ income, self-awareness and self-satisfaction, the proportion of self pleasing consumption increases and grows fastest, and overflows to symbolic consumption. The proportion of basic consumption in the low consumption market has decreased, but the decline rate is relatively slow, and gradually turns to more self pleasing consumption.

With the improvement of railway business and highway logistics, the online shopping index of low consumption market has been improved more rapidly

With the continuous improvement of the railway network and the improvement of road transportation volume, the logistics channels in the low and medium consumption market are gradually unblocked, giving consumers more product choices and driving the further downward penetration of online consumption. From the perspective of snacks and beverages, the consumption channels with lower threshold naturally have more commodity possibilities. Driven by the gradual migration of consumption habits to online channels, t6-t9 consumers are more significant. When Yue has become an increasingly strong consumer demand, the more convenient Internet widens more imagination space for skin care consumption. Especially in the sinking market, the online purchase index has increased rapidly.

Consumer behavior and the development of e-commerce platforms influence each other, and consumers in low consumption markets develop post purchase sharing behavior

From the average level of 2017-2020, in the consumer e-commerce shopping consumption link, the main links are concentrated in the middle of the link, while the participation in understanding goods before purchase, comparing prices, sharing experience and comments after purchase is low.

On the one hand, it comes from shopping habits. On the other hand, it is also related to the development of platform content and sharing links. In recent years, platforms and consumers have promoted each other, and shopping links have become more and more complete, but there are still differences in market conditions.

From different market conditions, the pre purchase links in the mature consumer market are sufficient and the growth rate is low. Driven by the increasing diversity and maturity of e-commerce platforms, consumers’ behavior of actively learning more information before purchase is significantly improved in the medium-sized consumer market, which further promotes the platform to create more suitable content to help search and plant grass before purchase; The low consumption market relatively prefers social e-commerce platforms. For example, pinduoduo, which has developed rapidly in recent years, has stimulated more sharing needs and formed the behavior of sharing experience and product comments after purchase.

The low consumption market has low exposure to digital media advertising, but high trust, especially the official and grass planting content

Consumers in the low consumption market generally trust to see advertisements, but they have low exposure. Low exposure, on the one hand, comes from consumers’ own use habits, on the other hand, it also comes from the lack of guidance from the key direction of the media and the brand. The change of media consumption behavior and the development of media platform affect each other. The difference of media high line and sinking strategy makes the difference of catalyst characteristics and media consumption trend in different markets still amplify. For brand marketing, we need to pay special attention to their trust in private e-commerce and content planting. Strengthen link guidance, interest push and other methods to strengthen the positive effect of contacts on consumers. In traditional media, especially outdoor media, consumers’ media preferences at all levels of the market vary greatly, which is closely related to local life.

The content preference is influenced by the regional market culture, and the play content preference is closely related to the local development cycle and industrial structure

As can be seen from the left figure, T6, T7 and T9 are relatively younger industrial city groups. Consumers in these market groups are relatively young, energetic and prefer youth dramas. Among them, the consumption and income levels of T7 and T9 are relatively low, and their preference for rural, age and war themes is slightly higher, which is close to the market groups with relatively large proportion of primary production such as T8 and T10. The early mature undeveloped market is mainly in T5. They prefer historical and red military brigade. The high consumption market with relatively developed economy mainly prefers cities close to their lives and themes reflecting white-collar life. Therefore, after the brand determines the contact form, the choice of content also needs to be adjusted according to consumer preferences, and consumer preferences will continue to change with the local development cycle and the adjustment of industrial structure.

From: GroupM think tank

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