IDC - Press Release
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IDC's ConsumerScape 360 Finds Tech Consumer Opportunities in China's Tier 2 Cities

01 May 2012

San Mateo, Calif., May 1, 2012 – Technology marketers looking for the right target audience need not look further than the Tier 2 cities like Chengdu and Sichuan, according to the results from the latest International Data Corporation (IDC) ConsumerScape 360° survey. China's Tier 2 cities are exploding in terms of growth and this growth is coupled with a very high proportion of "Tech Evangelist" consumers - indicative of exponential growth for consumer tech companies in these critically important areas of China.

IDC's Global ConsumerScape 360° research program has identified six distinct consumer market segments: Tech Evangelists, Impulse Buyers, Experimental Adopters, Pragmatic Purchasers, Green Buyers, and Disengaged Functionalists. Tech Evangelists not only own the most devices and utilize the most advanced functions, features and apps, they are also the group that drives adoption of device ownership and usage by other market segments. Tech Evangelists hold enormous sway over the buying patterns and device usage trends mass-market segments exhibit. They are also the group that mainstream market segments reach out to directly for purchasing advice.

"Given the extremely large combined population of Tier 2 cities in China, coupled with a very large proportion of Tech Evangelists, marketers should place Tier 2 cities as a key priority for all consumer-facing brands, vendors, and data service providers," said Michael DeHart, director of IDC's Global ConsumerScape 360° consumer technology insights program.

"Tier 1 cities in China should no longer be viewed as 'emerging markets'," added DeHart. "These are mature economies with some of the largest populations in the world -- bigger than many small countries."

Tier 2 cities are currently exploding in terms of growth in China, and are now showing an extremely high level of Tech Evangelist consumers, indicative of continued exponential growth in these markets. And, while Tier 2 cities in China account for about 8% of the population of China, they account for about 59% of U.S. imports, according to the US Commercial Service. This is critical information for PC, smartphone, tablet, and software vendors. "If you can reach this group successfully, you'll see exponential ROI implications. By comparison, this level of Tech Evangelists in tier 2 cities - 41% - is higher than the rate of Tech Evangelists in any country that we currently track in ConsumerScape 360°," says DeHart.

Tier 2 cities/provincial capitals in China include, but are not limited to Chengdu, Sichuan, Chongqing, Dalian, Liaoning, Hangzhou, Ningbo, Zhejiang, Kunming, Yunnan, Nanjing, Suzhou, Jiangsu, Qingdao, Shandong, Tianjin, Shenzhen, Zhuhai, Guangdong, Wuhan, Hubei, Xiamen, Fujian, Xi'an, and Shaanxi.

Market Segments by Tier Cities in China



Figure 1



Source: IDC's Global ConsumerScape 360° study, 2012

About IDC's ConsumerScape 360°

IDC's ConsumerScape 360º service utilizes direct global primary research to provide insights and trends regarding consumer electronics and digital services. As data, communication, video, and entertainment services proliferate, the way businesses segment consumers needs to evolve. Using advanced market segmentation techniques, ConsumerScape 360º identifies and profiles consumer electronics market segments based on ownership/usage behavior, technology adoption, brand preference, competitive analysis, and psychographic factors governing cross-category spend. This year's ConsumerScape 360º covers Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, New Zealand, Philippines, Poland, Russia, Spain, Sweden, South Africa, South Korea, Thailand, Taiwan, Turkey, United Arab Emirates, United Kingdom, and United States.

For more information on ConsumerScape 360°, please contact Michael DeHart at: mdehart@idc.com

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.





Regions Covered:

China, United States

Topics Covered:

Market intelligence



Contact

For more information, contact:

Michael DeHart
mdehart@idc.com
650-350-6281


Michael Shirer
press@idc.com
508-935-4200


 
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