Rapid economic development has seen more companies target the potential purchasing power of the second- and third-tier markets as growth engines for their business.

But how can companies develop their business in these markets?

What are second- and third-tier markets? Different industries and companies have their own definitions, but a general classification is possible.

China has over 600 cities that can be classified into second- and third-tier markets, with the exception of provincial capitals and cities in affluent regions. The categories refer to the cities, counties and towns in developed regions.

To carry out marketing campaigns in second- and third-tier markets, companies must first conduct research and analysis, then categorize the markets, products and prices, and set the scope for target consumers.

Research and analysis tells us that consumers in second- and third-tier cities have the following characteristics:

Consumers tend to follow opinion leaders. Consumers are usually influenced by the local consumption environment and a small group of people can lead a consumer trend.

Consumers favor promotions. Some marketing models that are unsuccessful in first-tier cities can see unexpected success in second- and third-tier markets because these consumers are not exposed to sophisticated market models.

Holiday seasons are very important in driving sales. Sales during the May 1, October 1, New Year's Day, and Spring Festival holidays, a total of 22 days, account for 80 percent of the year's total sales.

Brand is a blurred concept. Many consumers want brand-name products, but they do not have concrete ideas about what the brands are.

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