My understanding of the analysis is as follows
1.1, the so-called sinking market, according to the common understanding of the meaning is to refer to the third-tier cities, counties and towns and the vast rural areas of the market.
1.2, there are 4 first-tier cities in China, 15 "new first-tier" cities, 30 second-tier cities *** counting 49, the vast majority of other geographic areas can be understood as a sinking market category. By area, nearly 95% of the land area is covered by the sinking market. By population, the size of nearly 1 billion people. The large and scattered market scope is the fundamental aspect of this market.
1.3, second, the sinking market is relatively lack of quality products, whether it is the real economy or new retail economy, or the new entertainment type of experience services, the needs of the residents are far from being satisfied. With the rapid development of the economy, the people have shifted from solving the problem of subsistence to aspiring for a better well-off life. However, the infrastructure of first- and second-tier cities is perfect, and the high consumption level of residents can support all kinds of commercial activities and experiential consumption. While the sinking market commodities and services are still a considerable distance away from some cities. The consumer demand of the sinking market is not satisfied, but the market is more decentralized and the service cost is higher, which is also the pain point of the sinking difficulty.
1.4, another very important is the sinking market fundamentals development potential is huge. The reason for the huge potential of the sinking market is that the degree of Internet is still relatively backward, the whole atmosphere is not good enough. That is, the sinking market has not yet fully enjoyed the Internet dividend brought about by the service and product advantages, as well as a series of new ideas and new models to bring convenience. So its growth potential is huge, the only contradiction is how to optimize the products and services to adapt to the consumption scene of the sinking market.
2. Outline the consumer portrait, the core of the market is people, and the characteristics of people constitute the characteristics of the market. So how is the consumer portrait in the sinking market?
2.1, the sinking market is a society of acquaintances, to put it plainly is a small circle. Is based on relatives and friends and neighbors and the formation of a complex and large network of relationships, in the countryside is almost the village head of the things that happen not a day will be spread. A small county happens a little bigger things basically do not need to watch the news. This is the biggest characteristic of the sinking market. This is completely different from the business environment in the big cities of the first and second tier. A lot of businesses that grow or open up from a sinking market are built from yelling campaigns and word of mouth.
2.2, the users in the sinking market are relatively price-sensitive. Although there are many consumers in the sinking market, there is an objective condition that the income is much lower than the first and second tier cities, and the consumption concept is still conservative. Therefore, the price attribute of goods or services will become an important factor to consider in the consumption decision of users in the sinking market.
2.3, the sinking market is characterized by leisure and entertainment attributes, and consumers have more leisure time. This is completely different from the fast-paced urban life in big cities. Especially the sinking market belongs to the establishment category and employees of state-owned enterprises, their leisure time will be more. Even for private enterprises and self-employed people, these types of people are relatively more free. So this is why there is a wide space for square dancing, fast hands, interesting headlines and so on.
3, the opportunity of the sinking market in where to reflect? Embodied in the consumer upgrade.
Maybe people think that consumption upgrade only happens in the first and second tier cities, because people's income is rising. The consumption potential of its sinking market is also the same in the growth, which is the source of the opportunity of the sinking market. Especially in some areas of rapid growth, the consumption potential should not be underestimated.
And more importantly, there are many people in the sinking markets who have primary housing, which doesn't squeeze their income space due to mortgage pressure, so the consumption pressure is on the low side.
The opportunity of the sinking market is that people are gradually transforming from family consumption to individual consumption, so branded, high-end products will be more valuable and competitive.
This is also why there is a small town youth.
Above all, I hope to help you with your question