We are starting to wind down our deep dive on lower tier consumers via the Starcom MediaVest Yangtze Study.  This is week 7 and after this, there are only 2 more weeks to go.  So stay tuned as we conclude our discussion of the study…. And as we count down to the end of the year!

This week, we are looking at trust and relationships in lower tier cities.  How lower tier consumers communicate and who/where they place their trust: Who Do I Turn To?

If you have just started reading, please scroll to the bottom of this page to get caught up.  I have listed all the links to previous insights in this series.

As humans, it’s in our nature to talk, listen and share… to build relationships with others.  As we look to people in lower tiers, conversation takes on a new meaning – especially when much of your life revolves around the same people day in and day out.

When you’re surrounded by familiar faces all the time and living a relatively slower pace of life, it’s enjoyable to sit and ‘shoot the breeze’ with those around you.  But what does one talk about in their small town, with arguably fewer happenings?  That’s why we need to…

GIVE THEM SOMETHING TO TALK ABOUT

In these small towns, today’s routine is likely to be the same as the day before, so anything new is worth mentioning.  Gossip is rampant – for everyone knows one another, and life is simple.  That’s why when you are the person with interesting news of events, experiences or local happenings, you have social currency worth its weight in gold.

Gossip becomes mixed with stories of sales, promotions and new products.  Window shopping becomes fuel for conversation.  Advertisements, branded content, samples, events – anything that can entertain or educate has the opportunity to endear a brand to a future consumer.

As brands, we should think about ways to help local shops create excitement around a new launch.  Think about what type of owned media you can use to brighten shelves and aisles.  Give them large “talkable” points in the form of interesting facts, or new technology, which consumers can take and share with their friends.  Be big and bold, yet informative and accessible.   Above all make sure the “talk” you create has legs to stand on and a hook to draw these newly-informed consumers back to the store to make a purchase.

Lower tier youth, especially, view themselves as having a wide network of friends and family that they keep in touch with.  This is extremely important to them, as these relationships are their source of entertainment, companionship and support.

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While we now know that they love talking and sharing/hearing new news, this doesn’t mean that they are thought leaders.  In fact, they are …

MORE OFTEN A FOLLOWER, NOT A THOUGHT LEADER

Lisa Richert, Strategy Director, North Asia explains it well:

“We all know that intelligence is not based on solely on where you are from or how much education you have.

But too often we forget, especially when we think of our own stereotypes of people in more rural areas.

The people in lower tiers though are not stupid or simple-minded – they are just not exposed to as much information or news as their upper tier counterparts.  They know they exist in a world where they are often the last to receive any news.

So they look to Brands to educate them on the category, provide them with a perspective, and help them build their knowledge and have “safe” avenues for questions.  Information gives them the confidence and conviction to act.  The brand that helps guide their knowledge without talking down to them will be seen as being that much stronger and more appealing.”

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Saving or keeping face is a universal truth across tiers.  If the confidence is not there, the best answer is keeping silent.  Our opportunity as brands is to see how we can help enable people to be more confident in the choices they are making for themselves.

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And ultimately, people trust people.  It’s just that simple.

TRUST IS A PERSON, NOT A THING

As we move into lower tiers, we see that people have less trust for pure advertising.

Friend’s experiences and referrals hold infinitely more sway than advertisements.  However, trust is not only reserved to friends and family, but also to others who our consumer views to be ‘experts’.  These include sales associates and shop owners.  Often, sales associates may not have that much more knowledge about the brand, or their information may come from the same sources as the consumer (e.g. TVC and other types of ads), but due to their position, they are viewed as authority figures.  This shows the importance of educating sales associates who have a direct influence upon the sales of your brand in lower tiers. Trial is also an important push for lower tier consumers.

It is also common for lower tier parents to defer the purchase decisions to their children, viewing them as being more educated and knowledgeable about products.

Says Jeffrey Tan, National Research & Insights Director:

“As we think about youth, this power they have with their parents as well as their peers is worth exploring.  Learn how they influence as well as how they make household purchases.  Ease their trial through sampling; through smaller and more affordable sizes for trial purchase.   See whether it’s possible to build school locations into sampling or distribution plans.”

It is evident how much power their peers have upon lower tier consumers.  This works in two ways:  First, it is about people who they know personally, but secondly it is also due to the value of people like them.  The next best thing to me is someone I see as being like me.

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Previous insights for you to get caught up on if you’ve missed any:

Week 0: Kick-off and study details.  Click here.
Week 1: It’s a Matter of Perspective – Click here.
Week 2: The Secrets of the Heart – Click here.
Week 3: Celebrating the Power of Family – Click here.
Week 4: Unveiling Community Dynamics – Click here.
Week 5: The World Outside My Door – Click here.
Week 6:  Purchases and Product Consumption – Click here.

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