Not long ago, during a business trip to the Guangxi market, I traveled to Jingxi City, located on the China-Vietnam border in southwestern Guangxi. This border town has a permanent population of 480,000, was upgraded from a county to a city in 2015, and only exited the list of impoverished counties in 2020. Initially, I thought there would be no market opportunities to explore here, but the reality was surprising: the beverage market is highly competitive, with business opportunities emerging. This made me ponder whether major brand manufacturers currently facing performance bottlenecks can find breakthroughs in such markets. Here, I share some insights, hoping to inspire brand manufacturers. Current State of Lower-Tier Markets 1. Highway Billboard Advertising As soon as I got on the highway, advertisements from a certain beverage brand kept coming into view, with eye-catching products and slogans covering nearly one-third of the billboards. 2. Village and Town Advertising Upon entering villages and towns, wall advertisements for beverage brands began to appear at major intersections, and surrounding mom-and-pop stores, BC supermarkets, and tobacco and liquor shops simultaneously displayed brand posters that echoed the wall ads, forming a beautiful landscape. Walking along the roadside, this brand's presence was clearly superior to others. 3. In-Store Beverage Display and Share In stores, beverages accounted for 25%-30% of the business. Shelves were neatly stocked with various brands such as Red Bull, Wahaha, Uni-President, Jinmailang, and Dongpeng. Near the cash register, brands had dense cut-case displays, showing the importance major brands place on this market. 80% of outlets were equipped with brand freezers, with an average purity of over 40%. The in-store vibrant promotional atmosphere was strong, reminiscent of the competitive state of urban markets a decade ago. 4. Consumer Purchase Observation Observing consumer purchasing behavior, the frequency of in-store beverage purchases was even higher than in urban markets, especially for frozen and promotional products. This indicates that product vibrancy and promotional information have a more significant pull on sales in township markets. 5. Channel Expansion Discovery Due to its border location, local car water-filling stations have also become important channels for beverage brands, with average monthly sales exceeding 20 cases per station. Market Potential and Existing Problems 1. Market Potential Nearly 700 million people are distributed across 2,844 county-level administrative regions nationwide. Despite the overall economic downturn and weak consumption momentum, county-level markets show stronger vitality. Data shows that in 2023, the number of counties with GDP exceeding 100 billion yuan increased to 57, with eastern coastal regions accounting for 77%. The number of such counties in central and western regions is also gradually increasing, reaching 12 last year, including the first in Henan. Relying on advantageous characteristic industrial clusters or tourism features, county economic development has significantly boosted residents' purchasing power, and brand consumption awareness has simultaneously increased. 2. Existing Problems Most first- and second-tier beverage brands have established distributors in this market, with manufacturers arranging sales personnel to provide services. Brand manufacturers prefer distributors who are familiar with the market, have strong capital, and possess distribution hardware. However, in terms of service evaluation, feedback from distributors is mixed, and truly few brand manufacturers invest heavily in township markets. Many brand manufacturers have not fully developed their operations in county-level markets, mostly using them as sales reservoirs, relying on central city distributors for coverage, assigning one salesperson, and conducting a market push once a month. Professional market promotion, channel refinement, success imagery, and resource sinking are not meticulously planned. Some brands that have made early moves are gradually gaining first-mover advantages, quickly implementing urban market tactics in lower-tier markets, achieving rapid progress in both consumer cultivation and terminal sales, and rapidly increasing market share. County-Level Market Development Strategies 1. Customer Management:

  • Select Quality Customers Choose customers with a good business reputation, strong service awareness, and distribution capabilities, excluding those who overly focus on profits, frequently divert products, or only pursue short-term gains.
  • Incentive Measures Provide strong incentives and respect. County-level market services need to penetrate to villages, with long trunk routes. It is recommended to implement flexible incentives in customer management, such as distribution subsidies, seasonal distribution incentives during peak periods, and high-value incentives like travel or vehicles when hitting annual sales targets. Manufacturers can grant qualified customers in promising markets the title of special distributor, enjoying dealer purchase prices and delivery-to-warehouse services.
  • Marketing Policy Interaction When formulating marketing policies, manufacturers should fully interact with customers and clarify division of labor: manufacturers leverage their marketing strategy planning advantages, while customers leverage their local relationship advantages, jointly controlling the market. 2. Brand Communication:
  • Multi-dimensional, Unified Communication Methods. The brand communication approach in the Jingxi market is worth learning from. Traditional communication methods in lower-tier markets are very effective, and forming a unified promotional matrix yields better results. Choose at least three or more advertising channels from highway billboards, vehicle ads, scenic area umbrellas, bus stops, local radio, terminal store signs, and commercial district ads to touch three points of target consumers' life trajectories, allowing the brand to penetrate consumer minds faster. In brand visual displays, reflect brand differentiation and maintain standardization and unity, so consumers feel a sense of familiarity each time, continuously deepening brand impression.
  • Utilize Folk Activities County, township, and village markets have more folk activities than cities, such as market days, annual festivals, and song fairs. These are excellent opportunities to enhance brand influence. Leveraging festive crowds for brand sponsorship, brand roadshows, and product tastings is a proven success strategy for many first-tier brands. 3. Pricing Strategy
  • Adhere to Brand Positioning, Do Not Arbitrarily Reduce Prices. Beverage competition is increasingly fierce with severe homogenization, especially in county and township markets where many imitation products exist at extremely low prices. Should brand manufacturers follow suit without limits? The answer is no. Consumers in lower-tier markets care about face and seek brand cost-effectiveness. Brands should adhere to their positioning and use media to highlight product advantages. For example, through customized promotional materials or handwritten notices stating "Look for XX", "I am your unchanged friend for X years", or "Higher quality, worth choosing".
  • Adjust Product Packaging to Counter Competitor Low Prices If competitors offer lower prices on the same packaging, consider differentiated packaging, such as changing from a 24-pack carton to a 12-pack gift box, with new packaging priced according to local gift-giving norms, ensuring the packaging is grand and quality is not compromised. Alternatively, use gift promotions to provide consumer benefits indirectly, but try not to arbitrarily reduce prices, as this is the red line for maintaining product channel profits. 4. Channel Strategy
  • Channel Classification and Grading County-level markets are suitable for channel refinement, classifying channels into mom-and-pop stores, BC supermarkets, internet cafes, closed factory parks, billiard halls, and catering, and grading outlets by sales volume, typically into A, B, and C levels. Different types and levels should have different in-store display and vibrancy standards, matched with different visit frequencies and cost investments.
  • Deeply Explore Local Special Channels For promising markets, fully launch freezer placement and actively explore local special channels, such as water-filling stations and car washes in the Jingxi market, to develop local characteristic channels. 5. Promotion Strategy
  • Down-to-earth, Cost-effective Promotions. County-level market promotions should not only create a consumption experience comparable to big cities but also reflect personalization and cost-effectiveness. For example, a betel nut brand in Yangxi County, Guangdong, ran a promotion where buying betel nut could win prizes, and adding 10 yuan would get a Midea air circulation fan. In county and township markets, promotional gifts should be practical and grand, such as household appliances, pots and pans, or simple and direct "1 yuan exchange" offers, which are effective. QR code red envelope methods are not favored.
  • Promotional Strategies for Terminal and Wholesale Customers For promotions targeting terminal owners or wholesale customers, avoid single purchase reward methods; combine with gifts like large umbrellas, insulated water bottles, or tea sets, showing thoughtfulness, and ensure gift quality.
  • Organize Activities to Attract Crowds Entertainment channels can organize activities to attract crowds from time to time, with brand manufacturers providing resources and sponsorship, and sales or marketing personnel organizing events such as billiard competitions or e-sports competitions, replicating mature practices from urban markets. Final Thoughts With policy dividends continuously being released, county economies are ushering in vigorous development, which is crucial for FMCG development trends. I hope brand manufacturers will act quickly, deeply cultivate lower-tier markets, explore incremental growth, and deploy their moats in advance. Recommended Reading