Lower-tier Cities Research Articles

City civilization, employment creation and talent agglomeration: Empirical evidence from “National Civilized City” policy in China

China's rapid urbanization has intensified urban employment pressure. The National Civilized City (NCC) policy is a significant initiative in China aimed at promoting high-quality urban development. We utilize the NCC policy as a quasi-natural experiment and employ the staggered difference-in-difference method to empirically analyze the impact of urban civilization development on full employment and human capital level. The empirical results demonstrate that NCC policy significantly promotes urban entrepreneurship and employment creation, boosts labor demand of local enterprises, and enhances the human capital level. The positive effect on employment is significant in both talent-intensive and low- and medium-skilled intensive fields. In addition, heterogeneity tests show that this positive effect is more pronounced in low-tier cities and previously polluted cities. Finally, the mechanism analysis indicates that the NCC policy can enhance employment creation through investment promotion at the city level and by expanding production scale at the firm level. The NCC policy's impact on human capital level is supported by technological advancement and innovation emphasis mechanisms from the demand side, as well as talent agglomeration mechanism from the supply side. This study provides policy recommendations for local governments to leverage the achievements of civilized cities in promoting employment.

Pathways to zero plastic waste in Chinese cities: Implications of different disposal options under the zero waste cities policy

The disposal of municipal plastic waste (MPW) is crucial to the sustainable development of cities. China generates a large amount of MPW and the disposal methods vary with the level of urban development. This study analyzed the MPW disposal transformation in six groups of China cities at different development level. The results show that landfill is still the main disposal method in the fourth and fifth tier cities, while incineration has become the dominant disposal method in the higher-tier cities. The speed of transforming from landfill to incineration is faster at the higher-tier cities except the first-tier cities due to the large population and limited land resources. Scenario analysis implies that landfill and interim storage MPW could reduce 25%–35% by enhancing incineration and 51%–57% by enhancing recycling. There is still a big potential for lower-tier cities to enhance its incineration capacity, yet improving the recycling should be a more sustainable pathway especially for higher-tier cities.

Marketing Strategy Analysis in the Digital Era Taking Pinduoduo as an Example

In this study, the researcher will assess the marketing strategy analysis of Pinduoduo, a Chinese e-commerce giant that, over the past few years, has gained prominence and increased its market share against traditional e-commerce companies such as Alibaba and JD.com. In this study, the researcher will examine the effectiveness of the evolving online marketplace, focusing on the companys unique business model and strategies such as time-limited instant kills and social media marketing to develop a better understanding of the impact and success of Pinduoduos approach. The methodological approach that the researcher will use is a comprehensive literature review and the SWOT model to understand Pinduoduos digital marketing strategies. The literature review approach will focus on the core business model of the company, while the SWOT model will be instrumental in analyzing market positioning and segmentation. The key questions in this study include: conducting an assessment of the efficacy of Pinduoduos marketing plan; understanding its digital marketing trends; and drawing insights from global success stories in the industry. Pinduoduos marketing strategies that have led the company to effectively engage users, specifically those from low-tier cities, include time-limited instant kills, daily cash rewards, and subsidies. The SWOT analysis has helped the company identify strengths, such as market differentiation, and weaknesses, such as high unit prices. In conclusion, Pinduoduos success will be based on its ability to successfully navigate the sinking market and its successful utilization of its strategic innovations, making it a formidable player in the digital era.

Spatial planning of China’s lower-tier cities: strategies, implementation, and consequences

ABSTRACT Because of the uneven distribution of territorial power and autonomy, cities in lower positions in China’s urban hierarchical system are typically disadvantageous in obtaining vital and timely political and economic resources. Applying the theoretical discourse of spatial selectivity in state space production, this study focuses on the territorial dimension of spatial strategies and investigates how local spatial selectivity strategies have unfolded in Bengbu and Chuzhou, two third-tier cities in Anhui Province. The research finds that while lower-tier cities endeavor to use spatial selectivity and advocate new administrative and economic spaces by making connections to higher-tier cities, their spatial strategies overlook insufficient interconnections with their peers. Territorial status categorization, spatial relational adjustment, and administrative boundary realignment may have adverse effects when the mismatch between their targeted places and proposed functions occurs. Institutional reconfigurations through rescaled government and multi-level and cross-regional governance network are not common in lower-tier city’s spatial strategies.

A comparative study of motivations driving EV purchases in different-tier Chinese cities

Prevailing literature has largely focused on the motivations driving electric vehicle (EV) purchase intention instead of actual purchase behaviour, with a predominant emphasis on consumers in more developed cities. However, these insights may not be applicable to consumers in less developed ones and do not account for the intention-behaviour gap. Aiming to understand the motivations for actual purchase behaviour, a questionnaire was sent to both existing EV owners and potential consumers in different-tier Chinese cities. Results indicate regional variations in the motivations for purchasing EVs and reveal the presence of the intention-behaviour gap. Specifically, consumers in high-tier cities (first-tier and second-tier cities) are mostly driven by social norms but restricted by reduction in expenditure; consumers in low-tier cities (third-tier cities and below) are driven by technological interests. Environmental protection, privilege, and convenience may increase the purchase intention, but do not directly lead to purchase behaviour. This study will help governments and manufacturers to focus on the intention–behaviour gap and the different motivations in various target markets to introduce more practical policies and more effective marketing strategies.

Analysis on the Development Strategy of Starbucks' Layout in Third and Fourth Tier Cities in China

Recent surveys found that the stores of Starbucks are mostly located in first and second tier cities in China and its objective customers are high income earners. However, in its 2025 expansion plan, the main objective of Starbucks is to enter low tier cities in China due to the high consumption potential in those cities. In order to help Starbucks achieve its plan, this paper will use the SWOT model to analysis internal strength and weakness, external opportunities and threats of Starbucks. The paper found that Starbucks has high user viscosity, strong monopoly power and financial capacity. Besides, the economic conditions in low tier cities are also beneficial to Starbucks such as low cost on daily life bringing out higher level of disposable income and increasing demand for coffee. In the contrast, we found that Starbucks has several problems such as inefficient chain of command, cost pressure due to large investment on digital technology and poor product differentiation. Whats worse, there is fierce battle among other brands and undeveloped consumption concept in the low tier cities. According to the analysis above, we suggest that Starbucks should adopt some strategies such as price discrimination strategy, making product differentiation, increasing investment in digitization and new retail, enhancing the brand influence, seeking for new suppliers with lower prices, shutting down underperforming stores and making improvement on quality of product, service and environment.

Business Capabilities In Thailand’s Lower-Tier Cities: Importance-Performance Analysis

Purpose: Officially published on October 11th, 2021, Thailand government under Thailand Convention and Exhibition Bureau (TCEB) expanded the areas for MICE ((Meetings, Incentives, Conventions, Exhibitions Cities) cities development nationwide and took pride in its inclusive initiative in developing the lower-tier cities, regardless of the uncertain pandemic. Based on the report by TCEB Annual Report (2021), the 13 primary MICE to be developed under “MICE City Initiative'' include the tier-one, tier-two and tier-three cities. This research aims to explore Thailand’s lower tier cities’ MICE attributes (the lower tier cities under MICE development) as to underpin an informed data for all scholars, MICE professionals and government Theoretical framework: This research recommends the development of dynamic and internal capabilities over their implications on MICE and destination level attributes Design/methodology/approach: By enabling the importance-performance (IP) analysis, and with 435 volunteers from the scholars and professionals in tourism, hospitality, MICE, travel businesses, this research has been able to serve the novelty within the study of lower-tier city development and capabilities. Findings: The finding of this study highlights (i) the first underpinning of the MICE capabilities analysis from the context of Thailand’s lower-tier cities - the research area that is oftentimes overlooked and consequently lacking; (ii) the overarching exploration on MICE attributes; (iii) the responsive and in-depth informed-research for the development of the lower-cities in Thailand; (iv) the offer of fresh MICE capabilities benchmarks for other ASEAN regions. In specific, the study discovered two significant concerns in the current MICE business in Thailand’s lower-tier cities; (i) the expected service standards in MICE facilities are still underperformed; (ii) whilst, the friendliness of tourism destinations is overperformed, hence, overkilled the importance. Research, Practical & Social implications: This research would serve a wide variety of travel and tourism and MICE professionals as well as scholars. Specifically for destination management; this research would navigate clear guidance for the holistic development of lower-tier cities in Thailand, and as a benchmark for other emerging countries. Originality/value: This study takes a huge pride towards novel scholarship contribution of MICE business capabilities in the emerging economies. This research is able to further the application of previous research by J. Whitfield, et al. (2014) on MICE attributes, and the theories of dynamic and internal capabilities – while at the same time, offer benchmarks for other ASEAN’s MICE destination development.

Analysis of NAYUKI Operation and Development Suggestions based on SWOT

With the advent of the "Z" era, new tea has replaced traditional tea as a beverage preferred by consumers. This paper mainly starts from the development of new tea beverages in China and analyzes the current situation of China's new tea industry through the PSET model, to analyze the external conditions affecting the development of Starbucks. In addition, through the SWOT model, this paper analyzes NAYUKI's current situation and its market strategy and explores NAYUKI own strengths and weaknesses, the opportunities and threats facing its development, and the main problems faced by its marketing strategy. Finally, this paper makes a series of targeted recommendations for NAYUKI. This paper found that although NAYUKI has not yet reached the stage of sustained profitability, it can be expected that the epidemic will weaken its offline consumption interference, as well as the supply chain and store upgrading of enterprises, NAYUKI through the mining of potential consumers in low-tier cities, with the help of industry digital transformation, make full use of the advantages of "third space" stores, innovative marketing to strengthen brand value, and gradually increase the proportion of future Pro stores to reduce costs, the company's profitability is expected to improve in the future.

Has the Opening of High-Speed Rail Promoted the Balanced Development between Cities?—Evidence of Commercial and Residential Use Land Prices in China

The impact of high-speed rail (the following text is written as HSR) on regional economy has become an important research hotspot in the world. Using the Difference in Differences (DID) method, this paper analyzes the influence of HSR opening in 223 cities from 2011 to 2018, considering the time delay effect of HSR opening. After the Propensity Score Matching Difference in Differences (PSM-DID) method and counterfactual regression for robustness test, and we analyzed the mechanism of the urban resident population and financial activities; the results show that: (1) The impact of HSR opening on residential land price is more positive than commercial use land price. (2) For residential land price, the opening of HSR has a greater positive effect on the land in urban areas. (3) The HSR has a more significant impact on the price of residential land in high-tier (second-tier and first-tier) cities, especially on urban area in first-tier cities (including new first-tier cities), and then their city area, followed by second-tier cities. (4) In addition to the impact starting time first, the impact coefficient of HSR on the land price in high-tier cities is higher than that in low-tier cities. (5) From the perspective of residential land price, within 5 years from opening, HSR plays a constant role in developed cities’ economy.

Population Prediction of Chinese Prefecture-Level Cities Based on Multiple Models

In recent years, the population growth rate has been gradually declining in China. As the population problem becomes increasingly significant, the accurate prediction of population development trends has become a top priority, used to facilitate national scientific planning and effective decision making. Based on historical data spanning a period of 20 years (1999–2018), this article presents predictions of the populations of 210 prefecture-level cities using the Malthusian model, Unary linear regression model, Logistic model, and Gray prediction model. Furthermore, because the gray prediction model exhibited the highest degree of accuracy in formulating predictions, this study uses the model to predict and analyze future population development trends. The results reveal that the population gap between cities is gradually widening, and the total urban population shows a pattern of rising in middle-tier cities (second-tier cities and third-tier cities) and declining in high-tier cities (first-tier cities and new first-tier cities) and low-tier cities (fourth-tier cities and fifth-tier cities). From the viewpoint of geographical distribution, the population growth rate is basically balanced between the northern part and the southern part of China. In addition, the population growth of the high-tier cities is gradually slowing while the low-tier cities are experiencing a negative growth of population, but middle-tier cities are experiencing skyrocketing population growth. From the viewpoint of regional development, although the development of regional integration has been strengthened over the years, the radiative driving effect of large urban agglomerations and metropolitan areas is relatively limited.

M&A Activities and Changes in Corporate Control across Chinese Cities: Spatial Patterns and Locational Implications

This study examines spatial shifts across Chinese cities between 2002 and 2018 in corporate control due to mergers and acquisitions (M&As), which are important for the Chinese urban system based on the command-and-control criteria. Descriptive results indicate that the spatial reallocation of corporate control in China has been largely dominated by metropolises, provincial capitals, and urban agglomerations. Evidence of geographical dispersion of corporate control has been found from the enlarged gains or losses in some inland and lower tier cities. Regression results underline the crucial roles that are played by regional comparative advantages, corporate demography, and government intervention in the disparate positions of Chinese cities in the M&A network. Regional economic development, output efficiency, and spatial agglomeration of listed enterprises have significantly positive effects in converging or exporting corporate control for places. Moreover, cities with higher administrative levels and policy support from the state tend to experience a net gain in corporate control. We suggest that state-led policies in emerging economies should focus on the positive impacts of corporate M&As in acquiring external assets and promoting regional integration. This study will not only advance our understanding of the geography of domestic M&As in emerging economies but also provide an alternative perspective on the dynamics behind changes in city networks.

Consumer perceptions on the origin of infant formula: a survey with urban Chinese mothers.

The consumer survey reported in this research paper aims to understand how Chinese mothers learn about and confirm the origin of powdered infant formulas (henceforward formulas), their knowledge level and preferences between formulas from different origins. With globalization, dairy companies can source ingredients for domestic production and manufacture finished products across the world. Chinese consumers are now facing a variety of formulas with different brand origin, main ingredient origin ('nai yuan'), manufacturing origin, and country-of-purchase. Drawing on a large representative sample of Chinese mothers who have purchased formulas, we found that most of them had intensively engaged in learning about and confirming formulas' origin through different strategies. However, they may not interpret related cues correctly: a majority of Chinese mothers incorrectly considered the 'main ingredient origin' as the 'manufacturing place' and could not necessarily recognize between 'foreign' and 'domestic' brands. Among formulas from different origins, authentic foreign branded, produced and packaged formulas showed a high popularity in Tier 1 & 2 cities and among more knowledgeable consumers. In low-tier cities, these products were equally popular as domestically branded and produced formulas using imported milk powders and other ingredients. Formulas directly acquired from overseas markets through unofficial channels were least favoured by consumers. The study shows that Chinese consumers' previous one-sided endorsement towards foreign formulas appears to have weakened. Decisions made by formula companies on the origin of the main ingredient and the place of manufacture would influence product attractiveness, and the segments of Chinese consumers to target.

Intra and inter-country comparative effects of symbolic motivations on luxury purchase intentions in emerging markets

Emerging markets, and especially lower-tier cities within these markets, are seen as the future growth engines for luxury brands. However, extant literature on the drivers of luxury consumption has predominantly focused on Tier-1 cities. Grounded in the theory of network effects, this study offers first such intra and inter-country comparison of the symbolic motivations (i.e. snob, bandwagon and Veblen motivations) underpinning luxury purchases between and within Tier-1 and lower-tier cities in two prominent emerging markets, China and India. The findings offer first account of similarities and differences in consumer motivations that drive luxury consumption within and between these markets. While most luxury brands have ubiquitous strategies for emerging markets, the results will assist managers in developing distinctive brand strategies catering to the intra and inter-country differences.

The Rural–Urban Fringes in the Local Limelight: Urban Village Redevelopment in Yinchuan, Ningxia

As urbanisation strategies have been adopted throughout China in recent years, it has become increasingly relevant to study their implementation processes in so-called lower-tier cities away from the well-known regions. Urbanisation has given rise to different types of settlements for landless peasants: planned resettlement neighbourhoods, as well as more or less accidentally grown urban villages. While resettlement is widely adopted and positively propagated, urban villages are usually only seen as soon-to-be demolished “non-places” and their residents are often stigmatised. This article focuses on a case in Yinchuan, the capital of Ningxia Hui autonomous region. It analyses the demolition process of Yingnan village and its lead-up and finds that despite this general discursive framework, exposure on a local TV show and low scores on a national “civilised cities” ranking pressured the local government to not ignore Yingnan village as merely a “non-place” but to invest in better sanitary conditions and speed up redevelopment.

Is the Chinese skyscraper boom excessive?

ABSTRACT According to the Council on Tall Buildings and Urban Habitat, more than half of the skyscrapers completed in recent years, i.e., buildings taller than 200 meters, were in China. In fact, China has been undergoing a dramatic skyscraper boom since the early 2000s. Some claim that this boom is excessive. We examine this claim through two sets of analyses. First, we test whether developers or cities engage in height competition to build taller buildings. Theoretical models demonstrate that such competition results in excessive building height. We find some indications of height competition among Chinese cities. We find concrete evidence for height contests within cities. Second, we build a panel regression model to identify cities where growth in skyscrapers exceeds the trajectory predicted by economic fundamentals. Even though such a model cannot definitely establish whether these cities are building skyscrapers excessively, the results are useful in informing policymakers and developers of potentially higher risks in these cities. Our results suggest that Tier-1 cities are likely less risky than lower-tier cities.

How cropland losses shaped by unbalanced urbanization process?

Urbanization has widely known to directly consume swaths of cropland worldwide. Knowledge on what kinds of urbanization processes spared cropland is important for land use planning. This study offered insights on the impact of city level (city hierarchy: from the 1st to the 6th Tier cities) and urbanization modes (mega-city, city, town and village modes) on cropland losses through a first-ever continuous national survey on 345 prefectural level cities or above in mainland China from 2003 to 2016. We found that higher tier cities were associated with more direct and severe losses. Specifically, over 80 % of the recent urbanization formed on cropland in the 1st Tier cities, and the newly 1st Tier cities suffered the most rigorous losses. At national level, mega-city mode urbanization resulted in direct cropland losses (80 %) and the village mode was associated with prominent high-quality ratio (45 %). Town mode spared cropland more than village mode. However, ranking with urbanization mode was less obvious and even changed in the lower-Tier cities. At national scale, around 1.45 % of the total cropland area (approximately 2297 km² per year), including 1.06 % of high quality cropland area (approximately 852 km² per year), has been permanently lost. The most rapid cropland loss was in 2009 (3464 km2), and that of high quality cropland occurring in 2007 (1775 km2). Over 95 % cropland losses located in the east of the Hu line. Findings in this study called for target adaptive planning with full considerations of city hierarchy and urbanization mode. Particularly, land use policies to effective support land development in small towns can potentially relief pressure on cropland.

Implications of matching and pricing strategies for multiple-delivery-points service in a freight O2O platform

A multiple-delivery-points service that matches a vehicle to distribute goods from a merchant to multiple retailers is a novel and important business model in freight O2O platforms. Thus far, the distribution matching strategy that does not consider the pricing strategy has found wide use in practice. In this study, using mixed integer linear programming, we propose an assignment matching strategy that jointly optimizes the matching and pricing strategies with optimal delivery routes to multiple retailers. Based on practical data from Zallsoon, a famous freight O2O platform in China, the results show that the proposed assignment matching strategy has the potential to improve the pickup distance by 75–81.81%. Further, the choice of pricing strategies could contribute 60–93.33% in improvements to the transportation cost for cities with various order structures and promotion levels. Finally, the high starting fare and low extra charge rate strategy is preferred for high-tier cities, whereas the step toll strategy is recommended for low-tier cities.

State Intervention in Land Supply and Its Impact on Real Estate Investment in China: Evidence from Prefecture-Level Cities

State intervention in land supply can be a powerful tool in shaping real estate investment. Yet, few studies have examined the effect of central state intervention on land supply at the municipal level and the impact of land supply on real estate investment with respect to different tiers of prefecture-level cities in China. Varying central–local dynamics of land supply in different tiers of cities, and the often taken-for-granted relationship between land supply and real estate investment, warrant further investigation. This study aims to fill these gaps. It is found that the multi-purposed central land policy and the varying land leasing strategies adopted by different tiers of cities contribute to the varying land supply trajectories, calling for more nuanced and better-tailored central land policies that focus on the socioeconomic conditions of cities. The general significant and positive correlation between land supply and real estate investment, revealed by a panel regression analysis incorporating 280 prefecture-level Chinese cities, suggests that land supply control can function as a critical tool in governing real estate investment in China, which also sheds light on the governance and promotion of sustainable real estate markets in other parts of the world. This study also reveals a higher possibility of land speculation in first- and second-tier cities than that of low-tier cities. The nuanced correlations between land supply and real estate investment and the varying land development strategies employed in different tiers of Chinese cities imply that the effectiveness of land supply intervention in shaping healthy real estate investment may depend on local contingencies, calling for meticulous and tailored governance on land supply and real estate investment behaviors.

Changing distribution of migrant population and its influencing factors in urban China: Economic transition, public policy, and amenities

Rural-urban and interregional migration has greased the wheels of China's labor market and fueled rapid urbanization. The spatial distribution of migrants has changed significantly in recent years. We create a panel of Chinese cities using decennial census and annual yearbook data, studying the distribution of migrants from 2010 to 2016, comparing with prior years, and examining factors behind the changing spatial distribution. Results show that China's maturing economy, coupled with shifting migration policy and migrants' preferences, has affected the redistribution of migrants. The spatial agglomeration of migrants peaked in the early 2010s, so did the growth of migrants—signaling a major turning point of China's urbanization. The slowdown is most evident in coastal mega-regions, while several interior provincial capitals and coastal lower-tier cities have emerged as new migration destinations. Industrial upgrading and restrictive migration rules have pushed migrants away, while strong economies and more public services have attracted migrants. However, air pollution and higher housing cost have not deterred migrants. Our findings highlight that, while institutional factors and state interventions have greatly affected migration—except in the largest cities—their effects are diminishing in urban China. As the growth of productivity and population continues to slow, lower-tier cities can recruit migrants as part of their development plans.

Precarity, Cognitive (Non-)Resistance and the Conservative Working Class in China

ABSTRACTWorkers’ resistance is crucial to understanding how the working class respond to the growing labour precarity in post-socialist China. The labour studies literature posits that inequality and volatile capital movements increase workers’ precarity and lead to stronger labour resistance, such as strikes. However, workers’ cognition as an integral part of resistance has been rarely studied. This article examines cognitive resistance by Chinese workers from different tier cities by looking at their social trust, class identity, understanding of policies and class solidarity. Despite capital movements and precarity causing more labour unrest, it does not necessarily lead to a stronger cognitive resistance. While inequality and precarity are greater in the more developed megacities with a shifting capital favourability, workers in megacities display a more conservative cognitive resistance than those from the lower-tier cities. This study of workers’ cognitive resistance provides insight into the future of the Chinese labour movement. It argues that the working class’s current cognitive non-resistance suggests that even if a window of opportunity were to appear in the wall of state oppression, workers are not cognitively prepared to coalesce into a coherent social movement that would bring about transformative changes.