The sanitary industry is increasingly focusing on third- and fourth-tier cities, where a gradual but promising development trend is emerging. However, not every brand or product can achieve the same level of success in these smaller cities as they do in first- and second-tier cities. The differences in city size, population, economic status, and consumer behavior make it impossible to apply the same sales strategies or product lines across all regions.
To succeed in third- and fourth-tier cities, brands need to adjust their product lines to better match local demand. While the economy in small cities has been growing rapidly and consumer demand is rising, there is still a significant gap in consumption levels compared to larger cities. These areas mainly rely on affordable, practical bathroom products. High-end items like bathroom cabinets and bathtubs remain less popular due to their high cost and complex manufacturing processes. In contrast, toilets are more widely accepted because they are durable, easy to maintain, and offer good value for money.
Despite this, high-end bathroom cabinets may still have a niche market in these cities, so it's important to balance the product range—making toilets the core offering while including some premium options as well.
Building a strong brand presence in third- and fourth-tier cities requires a different approach than in major urban centers. These cities typically have lower consumption power, leading to fewer formal manufacturers and limited brand presence. Many stores operate with a mixed-sales model, combining various products to attract a broader customer base. While this method may boost short-term profits, long-term brand growth is better supported by a monopoly model, which allows for stronger brand recognition and consistency.
Although mixed-store models offer a wide variety of products, maintaining consistent quality across all items can be challenging. A single low-quality product can damage the reputation of the entire store. In third- and fourth-tier cities, consumers are becoming more brand-conscious, and once a brand gains trust, it can quickly gain popularity. Monopoly models help reinforce this brand image and support sustainable growth.
Product quality remains the most critical factor in the sanitary ware market, regardless of the city tier. Customized products require proper installation and after-sales service, which demands well-trained dealers. As the market expands, many new brands have entered, increasing competition and driving down prices. This has led to the closure of some smaller factories, creating an unregulated market filled with low-quality products.
In such an environment, consumers tend to prefer branded stores over mixed ones. Although branded products may be more expensive, they often offer better quality, design, and after-sales support. This helps build trust among mid- to high-end consumers, who are willing to pay more for reliability and style.
With a unified product line, excellent quality, and reliable after-sales service, branded stores can establish a solid foothold in third- and fourth-tier cities. When combined with effective marketing, this model can create lasting value and customer loyalty in these growing markets.
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