Unlocking county-level consumption niche

Household structure also matters. According to NIQ, compared with large cities, counties generally have higher marriage rates, more families with children and larger living spaces. Consumption decisions are therefore often made around households rather than individuals. Large-capacity appliances, bulk household goods and practical products can outperform premium offerings that rely only on status or branding.

Geography creates another layer of complexity. The gap between two counties can sometimes exceed the difference between a county and a nearby city. Industrial strengths shape local consumption ecosystems. For example, in Zhejiang province, Yiwu's global trading economy, Cixi's appliance manufacturing base and Dongyang's film tourism sector each create different consumer environments.

County markets are therefore not one market, but hundreds of distinct regional economies.

Many brands have struggled in counties because they treated expansion as a simple transfer of urban discount strategies. Consumers in counties are not rejecting higher-quality products; they are rejecting products that fail to match their daily needs.

In fast-moving consumer goods, NIQ estimates county markets account for 43.1 percent of national FMCG consumption. Annual growth reached 2.5 percent, compared with 0.5 percent in tier-1 and tier-2 cities.

Discount snack chains illustrate the competitive intensity. More than 13,000 new stores opened in 2025, with nearly half located in counties, while 6,895 stores closed. The market is entering a filtering phase where only operators capable of responding quickly to local demand will survive.

Success requires three capabilities: speed in adopting national trends, accuracy in matching local preferences and decisiveness in securing distribution space.

The same logic applies to durable goods. According to NIQ, in 2025, lower-tier technology-related durable goods reached 700 billion yuan and represented 67.1 percent of offline retail sales. Demand is concentrated around practical upgrades — larger televisions, refrigerators and washing machines that fit bigger homes.

Price differences reveal consumer priorities. Appliance price gaps between urban and county markets can reach 40 to 50 percent, reflecting consumers' focus on functional value. For smartphones and headphones, where social visibility matters more, the gap is often only 10 to 20 percent.

For companies, the future of consumption in counties will not be built by offering a cheaper version of urban products. Instead, it will require redesigning products and services around local lifestyles.

wangzhuoqiong@chinadaily.com.cn