Lower-tier cities are MNCs' new hope

Every time they tour China, executives of MNCs in the retail sector tell me they are amazed by the vast spread of markets across the country, and why they can't stop thinking on how to ensure their products or services reach every nook and cranny of the country.

They say everyone in their circles loves the so-called "small-town youngsters". The latter have already become the backbone of China's film and home appliances markets. For MNC execs, China's lower-tier markets are definitely not a nice-to-have option but a must-reach goal.

Typically, residents in top-and second-tier cities tend to obsess with home prices, workload, children's education and a high cost of living. But young consumers in lower-tier markets have more disposable income and spare time.