FOCUS 10 | JNA May/June 2023 | Julius Zheng 郑嵘 | Shantou, China 中国汕头 China’s massive population of 1.411 billion people is arguably one of its most attractive qualities as a market. This translates to over a billion consumers or potential customers for consumer products. Luxury brands, jewellery included, usually make a beeline for China’s thriving metropolises. For the big names, it is imperative to have a presence in Beijing, Shanghai, Shenzhen and Guangzhou – the Tier 1 cities that house more than 10 million people each. But after decades of concentrated development, jewellery markets in these bustling consumer hubs are saturated with international and local brands. As competition in Tier 1 and Tier 2 cities intensifies, growth lies in the less developed but equally promising lower-tier markets. Over three-fourths of China’s population, 77.55 per cent to be exact, live in Tier 3 cities and below, according to the National Bureau of Statistics. Expansion in lower-tier municipalities and townships is thus of strategic importance to jewellery brands seeking further growth. Successfully navigating one’s way in this potentially lucrative terrain however requires proper product development, enhanced brand positioning, supply chain optimisation and accurate data analysis. Expansion strategy Why is demand for jewellery on the rise in China’s lower-tier cities? Well, their growing middle class has more As luxury brands crowd China’s Tier 1 and Tier 2 cities, jewellers increasingly train their sights on developing but equally promising areas for further growth. Home to younger consumers with growing disposable incomes, lower-tier cities accommodate further expansion and brand reinforcement in new markets that can yield the loyal customers of tomorrow. 随着奢侈品牌在中国一、二线城市趋向饱和，珠宝商日渐注重发展中但同样有潜力的地 区，以实现进一步增长。低线城市的年轻消费者，有不断上升的可支配收入，因此品牌需要继续扩张 和强化，以培养未来的忠实客户群。 中国低线城市 为珠宝商提供 增长动力 China’s lower-tier cities fuel jewellers’ growth engines
RkJQdWJsaXNoZXIy NjAxOTU=