Chinese Consumers: Lower Tier Cities

This 64+ pages comprehensive report on the economic consumption force of Lower Tier Cities is a veritable baseline and insight on China’s overlooked rising consumption group – the Xiachen Market. The Alarice team has thoroughly studied, compiled, and analysed relevant data to give you the most updated and bigger view of the Xiachen market as well as timely and actionable tips.

Download the report


    • Lower-Tier City Market
    • Strengthen Internet Rural Revitalisation Policy
    • Market Size
    • Key Highlights
    • Consumption Behavior 
    • Lower-Tier City Market Preferences
    • Potential Market Size
    • Spending Power
    • Consumption Trends
    • Online Population
    • Preferred E-Commerce Platforms
    • Social Relationships and E-Commerce Behaviour
    • Live Streaming


The Lower-Tier Cities Report is the fourth instalment of Alarice’s consumer-focused reports.

Lower-tier cities have surprisingly made their name known in the Chinese economic landscape in recent years. This is primarily due to China’s considerable consumption force: the rising middle class. Lower-tier consumers, also known as Xiachen, are making waves in China’s e-commerce industry (among others). They are now the trendsetters and have their own consumer traits and consumption behaviour. 


Additionally, lower-tier residents have a population advantage. For example, the Xiachen population of Henan and Shandong have dominated the Xiachen internet market and are still growing. Furthermore, both sexes are proportionally represented in the market, with males slightly edging out the women consumers. As for age, the largest share belongs to the Chinese youth (20-39 years old). 


Of Xiachen residents, the biggest drivers of their economic power are the lower-tier city young people, given their potential market size, spending power, lifestyle, and online behaviour. These youth own luxury products way earlier than their counterparts and believe in patronising local shops and designs (Guochao lifestyle). 


Regardless, the increasing percentage of Xiachen’s online purchasing power is just a testament to the great potential of this market. This section accounts for 57% of total consumption in China, and their transactions have rocketed 174% within the past year alone. Overall, Xiachen residents prefer an integrated e-commerce experience on their platforms, such as Taobao and JD. Across any age, Xiachen residents’ main complaint is the authenticity of products they purchased and bad customer service. Nevertheless, their preference for shopping and buying online has remained the same and unaffected. 


Because of Xiachen residents’ values, they tend to share products and refer them to their close friends. Their lifestyle can also be categorised as slower than the first-tier cities, with an emphasis on holistic development and free time among young people. Finally, Xiachen residents have a preference for quality foreign goods compared to others. Still, they will not hesitate to switch to proven and trustworthy local brands.


This report was put together by the Alarice team, led by our project executives. At Alarice, we specialize in Chinese digital marketing, consumer research and analysis, Chinese naming services, market research, Chinese social media set-up, Chinese market entry and everything else needed to help your brand become successful in China. We make your campaign and marketing more engaging and productive for Chinese consumers. Plan your next campaign to the Lower-Tier City market with Alarice and be more effective with your brand. Contact us here, or drop us a message to learn more. Check out our other reports on Chinese Gen Z, Super Mums and Dads and Pet Lovers


Alarice’s service and resources will increase your expertise about the Chinese market, Chinese consumers, Chinese social media, KOL/influencer marketing and China’s technology landscape. This includes:


    We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. View more
    Cookies settings
    Privacy & Cookie policy
    Privacy & Cookies policy
    Cookie name Active
    Save settings
    Cookies settings