China Cities a Lucrative Market as Entire Country Set to Outperform Global Economy with GDP Growth of 6.8% in 2015

Euromonitor International released today a new white paper discussing China’s growth and a newly created City Tier Classification system.

According to the white paper, Cities in China: Economic and Consumer Dynamics for Successful Business, China has devoted itself to an evolving growth structure by expanding domestic consumption and investment. This has increased per capita disposable income and promotes urbanization, creating more balanced development between urban and rural areas. The rapid economic growth makes China a lucrative market to many businesses looking to grow their share and services.

However, in order to best capitalize on growth, Euromonitor suggests companies create territory strategies to connect with potential consumer bases. Euromonitor analysts have analyzed the business environment and consumer trends by city in China, developing tiers for each. These tiers highlight the economic and demographics of each city, making it easier for businesses to identify their target market(s).

For example, Tier 1 and Tier 2 cities make up more than 55 percent of the national GDP value but they also register high penetration of modern retail and foodservice. Tier 3 and 4 cities on the other hand, offer an untapped marketplace for future growth potential. Approximately 65 percent of fast moving consumer goods sales came from Tier 3 and lower tier cities. In order to seize opportunities in these Tiers, a number of brands have been working to target a potential customer base.

“Companies such as Starbucks plan to have a total of 1,500 outlets by 2015 and many of the new openings will be in Tier 3 and lower areas,” says Senior Consulting Manager, James Chen. “However, five years ago around 70 percent of their company’s 400 total outlets were located in Tier 1 cities. Using our tier strategy, businesses can best identify their target markets and begin utilizing strategies to reach those Chinese consumers.”

To download the white paper, visit: http://go.euromonitor.com/white-paper-cities-china-economic-consumer-dynami…

About Euromonitor International

Euromonitor International is the world’s leading provider for global business intelligence and strategic market analysis. We have more than 40 years of experience publishing international market reports, reference books and online databases on consumer markets.