In 2020, COVID-19 swept the world. As industry competition intensified and the need for market development grew, there was a clear trend in the catering industry - penetrating into lower-tier markets while building a stronger presence in first-tier cities. Traditionally, a catering brand that has gained fame in Beijing, Guangzhou and Shenzhen often focuses its attention on the first-tier cities for many years before considering entering into second- and third-tier cities. But in 2020, this cycle was significantly shortened as catering brands often chose to quickly develop lower-level markets by seeking partners with local resources nationwide when they were in the ascendant. Creating brand momentum in first-tier cities and increasing scale and profit in lower-tier cities will become a common market expansion approach for many catering brands.
As COVID-19 has hit the first- and second-tier cities harder than the second-, third-, and fourth-tier cities, regional catering brands have a better development environment. As the population of the second-, third-, and fourth-tier cities continues to grow, their ever-increasing disposable income and increasingly strong purchasing power are jointly promoting local consumption and have become a new driving force in the Chinese consumer market.
Under the new environment, can you take the lead in developing emerging markets? How to take a share of the local market? Where does growth come from? As competition in the catering industry has become unprecedentedly fierce, only those who develop new markets faster can win.