Lower-tier cities, accounting for over 68% of the total population in China, are the third tier and below urban and rural areas in China, which have the characteristics of huge consumption potential, good network infrastructure, and policy support.
As the growth of the first and second tiers is slowing down, lower-tier cities are attracting the attention of enterprises and investors. Top e-commerce companies are building custom brands targeting this segment, including Alibaba's Taobao Deals (recently renamed to Taote), Jingdong's Jingxi, and Pinduoduo.
The average annual growth rate of consumption expenditure per capita of rural households is 7.5 percentage points faster than that of urban households. The growth rate of per capita disposable income of rural households is no less than 8 percentage points.
China has over 300 million internet users in rural areas as of December 2020 with a penetration rate of about 56%, according to CNNIC. According to the Academy of Social S...
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