The sanitary industry is increasingly focusing on third- and fourth-tier cities, where a gradual but promising development trend is emerging. However, not all brands and products can achieve the same level of success in these smaller cities as they do in first- and second-tier markets. The differences between these urban levels are significant—ranging from city size and population to economic status and consumer behavior. As a result, sales models and product offerings must be tailored accordingly.
In recent years, small and medium-sized cities have experienced rapid economic growth, leading to a surge in consumer demand. Despite this, there remains a noticeable gap in spending habits and consumption levels compared to larger cities. In third- and fourth-tier cities, the demand for affordable, functional bathroom products is dominant. High-end items like luxury bathroom cabinets or expensive bathtubs are less common, while toilet products remain the primary choice due to their affordability, durability, and ease of use.
Toilets, for instance, are more cost-effective and require minimal maintenance, making them ideal for consumers with limited budgets. However, this doesn't mean that high-end products have no place in these markets. There is still a niche demand for premium bathroom cabinets, which should be offered as a complement rather than the main focus.
Building brand presence in these cities requires a different strategy. Compared to first- and second-tier cities, third- and fourth-tier markets have lower consumption levels, resulting in fewer formal manufacturers and a weaker presence of top-tier brands. Many stores operate with a mixed model, offering a variety of products to attract a broader customer base. While this approach may boost short-term sales, it can also dilute brand identity and impact long-term growth.
Monopoly, on the other hand, allows for stronger brand recognition and better control over product quality. Although mixed stores may perform better in the short term, a focused brand strategy is more beneficial for both the brand and the dealer in the long run. A unified product line ensures consistent quality and enhances consumer trust, especially as brand awareness continues to grow in these regions.
Product quality remains the most critical factor in the sanitary ware market, regardless of the city tier. Sanitary products are often customized, requiring precise installation and after-sales support. This makes professional training for dealers essential. Unfortunately, the rapid expansion of the market has led to an influx of small manufacturers, some of whom compromise on quality and environmental standards. This has created a chaotic environment, with many low-quality products flooding the market.
Despite this, consumers in third- and fourth-tier cities are becoming more discerning. They tend to trust branded stores more than mixed ones, even if the prices are slightly higher. These stores offer consistent quality, reliable service, and stylish designs, which appeal to mid- to high-end customers. With effective marketing and pricing strategies, a well-managed store model can establish a strong foothold in these cities, building a loyal customer base and a solid reputation over time.
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