What you need to know

Although lower tier city consumers have similar attitudes to those in Tier 1 cities towards the importance of a healthy lifestyle, they are not as proactive in pursuing it and are more concerned about potentially having to compromise on taste. Brands need to be more active and persistent in nudging them into new behaviours. Instead of sophisticated or trendy concepts, lower tier city consumers are more responsive to simple, direct and clear visual clues that convey health messages. Their trust in products depends on the information source rather than the quality of the information itself.

Through quantitative (based on the quantitative data from multiple Mintel Reports from 2018 to 2020) and qualitative research, this Report compares consumer behaviour and attitudes in different city tiers. This Report examines lower tier city consumers' attitudes towards healthy eating and expectations of a healthy food or drink product, and, using a series of case studies, it explores strategies brands can harness to increase their competitiveness in lower tier cities.

Covered in this report

  • Attitudes towards health and healthy eating

  • Purchase considerations in food and drinks

  • Trust in authority during the purchasing journey

  • Purchase channel preferences for food and drinks

Report scope

Healthy eating in this Report is a general term used to describe a healthy, balanced diet to maintain good health, including but not limited to:

  • Daily meals prepared at home

  • Food and drink products from foodservice channels

  • Packaged foods and drinks

  • Health supplements

Objective and research methodology

According to the National Bureau of Statistics, there were 672 cities in China at the end of 2018, among which 297 are of the prefecture level and 375 are of the county level. As Mintel clients have interest in multiple different aspects (region, city size), Mintel selects different cities for each round of surveys, considering their geographical locations and levels of economic development (eg GDP, per capita income). Mintel classifies China's cities according to the following criteria:

  • Tier 1 cities: large economic centres, ie Beijing, Shanghai, Guangzhou and Chengdu*

  • Tier 2 cities: provincial capitals (eg Jinan), municipalities (直辖市) (eg Tianjin, Chongqing) and economically developed prefecture-level cities (eg Suzhou, Dalian)

  • Tier 3 or lower cities: mostly prefecture-level cities (eg Weifang, Ganzhou and Pingxiang)

* Mintel chooses Chengdu to represent Tier 1 cities in the Midwest of China for the purpose of regional comparative analysis.

Through quantitative (based on the quantitative data owned by Mintel collected from 2018 to 2020) and qualitative research (based on in-depth interviews with 20 respondents from 10 Tier 3 or lower cities), this Report compares and analyses consumer behaviour and attitudes in different city tiers. Meanwhile, the Report further explores effective strategies for companies to improve their competitiveness in lower tier cities by case studies.

[graphic: image 1]

Quantitative research

Quantitative consumer research data was collected from various Mintel Reports over 2018-20. The consumer research, exclusively commissioned for China Reports, was conducted by a Chinese licensed market survey agent, KuRunData. The online consumer survey was sampled in 10 cities, each with a sample size of 300 people, for a total of 3,000 people.

Figure 1: The sample structure for each city is as follows:
Gender and age Household income (RMB)
Tier 1 cities Total Male

20-29
Male

30-39
Male

40-49
Female

20-29
Female

30-39
Female

40-49
6,000-9,999 10,000-17,999 18,000+
Beijing 300 50 50 50 50 50 50 100 100 100
Shanghai 300 50 50 50 50 50 50 100 100 100
Guangzhou 300 50 50 50 50 50 50 100 100 100
Chengdu 300 50 50 50 50 50 50 100 100 100
Tier 2, 3 or lower cities Total Male

20-29
Male

30-39
Male

40-49
Female

20-29
Female

30-39
Female

40-49
5,000-8,999 9,000-15,999 16,000+
City 1 300 50 50 50 50 50 50 100 100 100
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Qualitative research

To explore the ‘why’ behind the quantitative data, Mintel conducted in-home or online interviews with 20 respondents from 10 lower tier cities listed below. Each in-home visit lasted for about two hours with a moderator doing in-depth interviews with respondents, to understand their lifestyles, purchase preferences and the factors that influence them.

Figure 2: Interviewed cities in the qualitative research
[graphic: image 2]
Source: Mintel

In the qualitative research, Mintel selectively recruited affluent and educated respondents aged 25-39. In each city, Mintel recruited one male and one female respondent who has a personal income of RMB6,000-10,000 if single, or a household income of RMB14,000-25,000 if married. These respondents are more sensitive to market trends and better able to express their opinions. This ensures the smooth running of the research and is critical to gathering meaningful insights.

Figure 3: Profiles of respondents to the qualitative research
City Gender Age Marital status Education Company type Occupation Income Household members
Liuzhou, Guangxi Male 35 Married with a six year old daughter Postgraduate State-owned business University lecturer Monthly household income RMB20,000 Living with partner, one child and parents
Liuzhou, Guangxi Female 28 Single Undergraduate State-owned business Real estate salesperson Monthly personal income RMB7,000 Living with parents
Zhanjiang, Guangdong Male 27 Single Undergraduate Self-employed/freelancer Milk tea house owner Monthly personal income RMB8,000 Living alone
Zhanjiang, Guangdong Female 32 Married with a two year old daughter Undergraduate State-owned business Junior college lecturer Monthly household income RMB16,000 Living with partner, one child and mother-in-law
Linfen, Shanxi Male 30 Single Undergraduate Self-employed/freelancer Health supplement business owner Monthly personal income RMB6,000 Living with parents
Linfen, Shanxi Female 26 Married with a 10 month old daughter Junior college State-owned business Port security Monthly Household Income RMB20,000 Living with partner and one child
Dezhou, Shandong Male 36 Single Junior college Privately owned/foreign-owned business Risk control at a private financial company Monthly personal income RMB10,000 Living alone
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