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.
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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