(Visual China / Photo)
China has a fairly large number of counties, with more than half of the population living in them. In such a "big" county, the consumption scene in the past has received less attention. The young people who went home for the Chinese New Year this year in Beipiao and Shanghaipiao were "laughed at by themselves", marveling at the "seamless connection" between the life of their hometown and the big city, and even the consumption of young people in the county was much more generous.
Why is the consumption of the county and the life of the big city more and more "seamless", and the consumption of the youth in the county is more carefree?
Rising county consumption
China has more than 2,800 county-level administrative regions, including municipal districts, county-level cities, counties, autonomous counties, banners, autonomous banners, special zones, and forest areas. Excluding the municipal districts (more than 970) that carry the main functions of the city and the core regional role of economic development, there are still more than 1,800 counties.
In October last year, according to the "Chinese Population Census by County Data-2020", the first financial reporter found that the population data of more than 1,800 counties (including counties, county-level cities, autonomous counties, banners, autonomous banners, 1 special zone, 1 forest area, excluding municipal districts and functional areas) at the time of the seventh national census found that the permanent population of counties in mainland China is about 748 million; in terms of scale, there are 208 counties with permanent populations of more than 800,000.
Although there are so many counties in China, with more than half of the permanent population, they have received little attention in the consumer market before. For a long time in the past, county-level consumption was indeed relatively weak. The county economy covers a wide range of rural areas, and agricultural production and agricultural product processing industry occupy a dominant position in the county economy, while the service industry economy in the tertiary industry accounts for a relatively low proportion.
That is changing. With the economic development, the income level of county residents has been continuously improved, the income gap between urban and rural residents has gradually narrowed, and the purchasing power of county residents has increased.
At the policy level, the state has increased investment in infrastructure at the county level, such as the improvement of transportation, logistics, and communication facilities, so that the circulation of goods and services will be smoother and the convenience of consumption will be improved. In addition, e-commerce platforms and new retail formats integrating online and offline have been rapidly promoted in the county, which has greatly enriched the supply of goods in the county and stimulated consumer desire.
The combination of multiple factors has contributed to the strong growth of county-level consumption power. In the past, county consumption may have been ignored, but now, county consumption plays an important role, and concepts closely related to county consumption such as "sinking market" have become high-frequency words in the media.
（IC photo / 图）
"Seamless connection" with big cities
Linda, Mary, Vivian, George, Michael, and Justin, who are drifting in first-tier cities, may have a sense of psychological superiority over Xiulan, Cuihua, Guifang, Daqiang, Erbi, and Gouyu who live in their hometowns, and think that although they work hard in first-tier cities, the fashionable life in first-tier cities is not available in their hometowns. For example, there are not so many big shopping malls and big brands in my hometown, and there is no third space such as cafes in my hometown, and the cultural and entertainment activities in my hometown are very monotonous.
Now when I go home, I will be a little shocked - the life of the county can already be "seamlessly connected" with the first-tier cities. There are many commercial complexes, the merchants are all well-known chain brands, there are too many options to choose from when you search for "board game store", "script kill" and "escape room" on mobile phones, and the cafes are full on weekends and there are long queues of new tea shops......
Why is the consumption in the county town more and more "seamless" with the big city? The answer can be found in the trend of more and more big brands that originally only appeared in the first and second tier cities to open stores in the county.
First, with the gradual improvement of the county's consumption capacity, people's demand for brand and quality is also growing, and the consumption concept is gradually changing, forming new market opportunities. Brands are looking to meet the needs of local consumers and seize growth opportunities by opening stores in these locations. For example, more and more high-end luxury brands are opening stores in third-tier cities.
Second, brands need to expand their market share through sinking channels. The market of first-tier cities has become saturated, the market competition in county-level cities is relatively small, and the market gap is large. For example, the market performance of many mid-to-high-end brands in third-tier cities is far better than that of first-tier cities, and the performance of brands such as L'Occitane is supported by "county ladies".
Third, opening a store in a county-level city has relatively low operating costs such as rent and manpower, which is conducive to reducing the cost pressure of initial investment and continuous operation of the brand. In order to attract brands to settle in and drive the local business atmosphere and the value of surrounding real estate, large commercial entities in the county often provide various preferential conditions to further reduce the cost of large brands.
In short, opening stores in county-level cities is not only an inevitable choice for big brands to comply with the trend of economic development and changes in market demand, but also a strategic market layout. The "seamless connection" between county consumption and big cities has become a mainstream trend.
In addition, there are some local brands that are the envy of first-tier cities in the county, such as local specialty catering brands and retail brands that are in line with local consumption habits, etc., which can better understand the actual needs and purchasing power of local consumers, so as to formulate strategies that are more in line with the market. For example, Fat Donglai in Xuchang is not available in first-tier cities.
(Visual China / Photo)
The youth of the county are more generous
Perhaps what shocked the Beipiao and Hupiao people even more was that they were "laughed at by their own poverty", and the consumption of young people in the county was much more generous than their own. It is not easy to live in a big city, the cost of living in a big city is very high, although the monthly salary of many drifters is not low, but after deducting rent, commuting costs, etc., they have to save money every month, and they will be moonlight if they are not careful.
But just like a blogger who was laughed at by himself after returning home said in the video, "One or two hundred yuan in the county can't buy good clothes, and there are thousands of down jackets", "The old classmates are tired of drinking the tea of Ruixin Nayuki", "I drove to the provincial capital city to buy Boston lobster"......
Why is the consumption of young people in the county more carefree?
Although the average salary in the county is lower than that in the first-tier cities, the cost of living in the county is much lower than that in the first-tier cities, and the expenses such as mortgages and rents are relatively low. Especially in terms of housing prices, young people in county towns often do not need to bear the pressure of high mortgages, and some even own one or more houses. Therefore, the actual disposable income of young people in the county is relatively high, and there is more of it that can be used for personal consumption, and many people make money to consume.
There are also many young people in the county, whose parents have long settled in the county, and the wealth accumulated by their parents is enough to support the higher living standards of their children, which makes them more comfortable when spending.
The social circle of young people in the county is relatively small, and social activities are often closely related to consumption, and many young people in the county show their social status and identity through consumption. In order to integrate into the social circle, young people in the county are more willing to invest more money in consumption.
In addition, in some market segments, due to the imbalance between supply and demand or the scarcity of brands, the price of goods and services in the county is not significantly lower than that in large cities, which will also give people the impression that "the county is not bad for money".
Of course, the above does not represent the consumption of all counties and young people in the county, and the strength of consumption power is related to various factors such as personal economic status, consumption concept, and living environment.
And from a broader perspective, there are so many counties in China that are very different from each other. According to the above-mentioned CBN statistics, more than 200 counties have a population of more than 800,000 and 546 counties have less than 200,000 people, and as of 2020, a total of 21 counties have more than 200,000 people from outside the province, all of whom come from the eastern coastal areas.
Therefore, not every county is "seamlessly connected" with big cities, and many counties have a large number of young and middle-aged people flowing to developed areas and big cities along the eastern coast due to relatively slow economic development, single industrial structure, and insufficient employment opportunities, and consumption is sluggish.
Therefore, in order to make "county youth more generous" is not "survivor bias", we also need to continue to expand and strengthen the county economy, such as strengthening infrastructure construction, optimizing industrial structure, improving education quality and medical level, etc., so as to enhance the attractiveness and competitiveness of the local area, so that more county youth do not have to drift in big cities to realize their dreams, so that more county youth have a stronger sense of happiness.
Li Yu