How to grasp the rise of the third and fourth tier

2022-07-22
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With the gradual influx of domestic population into the third and fourth tier markets, household consumption in the third, fourth and fifth tier cities in China is also rising rapidly, and a number of well-known household enterprises have emerged. So, for home furnishing enterprises, how should enterprises attack the third, fourth and fifth tier city market? How to grasp the rise of the third and fourth tier consumer market? Whole house custom furniture brand Deville

population return and consumption upgrading drive the rise of household consumption in third, fourth and fifth tier cities

at present, China's urbanization is ushering in the third stage. Unlike the previous two stages, which focus on the development of large and medium-sized cities, the third stage mainly emphasizes the rational layout and balanced development of population and resources, and small and medium-sized cities will become the development focus of this stage. With the steady progress of the new urbanization process, the huge consumption potential of the third, fourth and fifth tier cities in the future is expected to be released rapidly

as an important consumer goods in the post real estate cycle, home furnishing will directly benefit from the real estate demand of the population returning to the third, fourth and fifth tier cities, as well as the consumption upgrading trend of local residents in pursuit of quality of life, with great growth potential in the future

there are obvious signs of population return, which will bring sustained consumption increment to the third, fourth and fifth tier cities.

affected by factors such as the gradual transfer of manufacturing industry to inland areas and the rising cost of living in large cities, the trend of population return to the third, Fourth and fifth tier cities is obvious in recent years, which will bring sustained exogenous increment to household consumption in the third, fourth and fifth tier cities

the permanent migrant population in Beijing and Shanghai has shown negative growth in recent years. Considering that Beijing and Shanghai are still strictly implementing population control and relief work (the permanent population target of Beijing in 2020 is 23million, and the permanent population by the end of 2016 is 21.73 million; the permanent population target of Shanghai is 25million, and the end of 2016 is 24.2 million), as well as the rising housing prices and other living cost pressures in big cities, it is expected that Beijing The increase of migrant population in big cities such as Shanghai will remain low

the increase in employment opportunities brought about by industrial transfer, as well as the advantage of low cost of living, make the third, fourth and fifth tier cities more attractive to the population. According to the National Bureau of statistics, the growth rate of local migrant workers has been significantly higher than that of migrant workers since 2011. It is expected that the proportion of migrant workers in the central and western regions of the province will further increase during the 13th Five Year Plan period

the household consumption upgrading potential of residents in small and medium-sized cities cannot be underestimated

with the steady growth of income, residents in small and medium-sized cities also usher in consumption upgrading, and the potential cannot be underestimated. According to the survey, the marginal propensity to consume of some residents in small and medium-sized cities has been similar to that of large cities, and even higher than that of large cities in some aspects, indicating their strong consumption demand. At the same time, the residents of small and medium-sized cities have reduced their sensitivity to price factors when shopping, and have higher and higher requirements on the brand, quality and cultural connotation of goods. According to the survey data of "foreign wharf", among the top 30 cities that dare to spend money on overseas shopping, the third, fourth and fifth tier cities occupy more than half of the seats

under the general trend of consumption upgrading, the consumption structure of residents in the third, fourth and fifth tier cities is expected to be similar to that in the first and second tier cities in the future, and industries that improve the living environment such as home furnishing and decoration are expected to benefit significantly

since the beginning of this year, the real estate sales in the third, fourth and fifth tier cities have generally strengthened, and the demand potential is large.

the real estate sales in the third, fourth and fifth tier cities exceeded expectations: according to the data released by the Bureau of statistics, the sales area of commercial housing in China increased by 25.1% year-on-year from January to February this year, of which the residential part increased by 23.7%, both significantly exceeding market expectations. Considering the negative impact of the increasing real estate regulation policies in the first and second tier cities on real estate sales, this round of sales area exceeded expectations, mainly from the contribution of real estate sales in the third, fourth and fifth tier cities

after excluding the hot third, fourth and fifth tier cities located in Beijing Tianjin Hebei, Yangtze River Delta and Pearl River Delta, the sales area of other third, fourth and fifth tier cities increased by 22.3% year-on-year in 2016 (higher than the 20.9% level of hot third, fourth and fifth tier cities)

the higher than expected sales performance in the third, fourth and fifth tier cities is mainly driven by the two major needs of migrant workers returning home to work and local people improving and upgrading. Among them, the housing demand of migrant workers in small and medium-sized cities is an important growth point of housing sales in the third, fourth and fifth tier cities. At present, there are about 280million migrant workers nationwide, and only a small number of migrant workers buy houses in cities. In addition, the housing price income ratio in the third, fourth and fifth tier cities is about 4.5, and local residents also have strong purchasing power. It is estimated that China's urbanization rate will reach about 70% in 2025 (vs. 57.4% in 2016). With the steady increase of urbanization rate, the demand for house purchasing in third, fourth and fifth tier cities will continue to be released

the home furnishing industry in the third, fourth and fifth tier cities has broad growth space.

in view of the need to purchase furniture after purchasing new houses, with the release of real estate sales area in the third, fourth and fifth tier cities, the home furnishing industry will also face broad growth space. It is estimated that the potential demand for house purchase in the third, fourth and fifth tier cities in the next 10 years is about 64 million units. Based on the average household consumption of 60000 yuan per suite, the potential household consumption in the third, fourth and fifth tier cities is about 3.84 trillion yuan, corresponding to an annual consumption of about 384billion yuan (according to the average release demand within 10 years)

from the perspective of the composition of household categories, it is estimated that the purchase demand of customized household (mainly wardrobe

, cabinet) accounts for about 30%, and the average annual market size is about 115 billion yuan; The purchase demand of upholstered furniture (mainly sofas and mattresses) accounts for about 20%, and the average annual market size is about 77 billion yuan; Other household products account for about 50%, and the average annual market size is about 192 billion yuan

the third, fourth and fifth tier cities will become an important force in household consumption: according to statistics, the market sales scale of China's household industry is about 1.05 trillion yuan. If calculated according to the average annual consumption amount of 384billion yuan in the third, fourth and fifth tier cities, its proportion will reach 36.5%. It can be seen that the consumption potential of the third, fourth and fifth tier cities in household consumption is huge

channel, quality, price and service are the core elements for home furnishing enterprises to seize the third, fourth and fifth tier market

on the one hand, the huge house purchasing potential of the third, fourth and fifth tier cities will bring broad growth space for home furnishing enterprises that take the lead in the layout of the third, fourth and fifth tier cities; On the other hand, in the context of consumption upgrading, the third, fourth and fifth tier residents' requirements for the brand, quality and service of household products are also increasing

channel: as a large non standardized product, offline experience is essential. In recent years, advantageous home furnishing leaders have continuously increased their penetration into the channels of the third, fourth and fifth tier cities, attracting more residents of the third, fourth and fifth tier cities to consume by constantly expanding offline stores, and providing them with good product purchase and after-sales service experience

quality: with consumption upgrading, third, fourth and fifth tier consumers pay high attention to product quality. Brand home furnishing enterprises are expected to stand out in the third, fourth and fifth tier home furnishing consumer market because of their good market reputation and guaranteed product quality

price: although price is still an important factor that third, fourth and fifth tier consumers pay attention to, it is not blindly pursuing low prices, but preferring products with high cost performance. On the one hand, Volkswagen home furnishing brand has obvious competitive advantages

service: including a series of service processes such as shop guide, designer door-to-door, logistics installation and after-sales service, which are also important considerations in the household consumption of third, fourth and fifth tier residents

for more brand information of whole house customized furniture, please visit the official website of Deweier whole house customization at www.deweier COM, if you need to join, you can call 400-8822-118

Mr. fashion furniture directly http://blog.sina.com.cn/u/5962689679

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