Issue link: https://read.dmtmag.com/i/1541387
Tobacco Asia 71 It is worth noting that with rising incomes and evolving consumption concepts, a clear trend of consumption stratification is emerging. On one hand, basic demand remains strong, with products in the RMB10-15 range dominating the mainstream. On the other hand, demand for premium products is growing rapidly, with mid-to- high-end products in the RMB20-30 range showing significant growth. For example, Zhongnanhai (Ice Midsize), with its innovative flavor and solid reputation, has suc- cessfully established itself around the RMB23 price point, becoming a new choice for experience-focused consumers. The brand trust mechanism in tight-knit communities The prevalent "close-knit society" characteristic of lower-tier markets means brand trust is built more on word-of-mouth and personal recommendations than on advertis- ing. In cities like Baoding, consumers tend to trust products endorsed by people they know, making a brand's historical legacy and regional emotional connections particu- larly important. Baoding has a century-long history of cigarette production, giving local brands an inherent advantage due to deep-seated regional affinity. The Diamond brand is not only a daily staple but also plays a significant role in important occasions like weddings and business receptions. This highlights the special emotional connection consumers in these markets have with local brands. Simultaneously, established national brands maintain a strong position thanks to long-accumulated prestige. Brands like Chun- ghwa, Yuxi, and Yunyan have become synonymous with quality consumption due to their consistent standards and strong brand influence. Socially-driven consumption demand Tobacco consumption in lower-tier markets is heavily tied to specific social scenarios. These scenarios represent significant volume and possess strong demonstrative and communicative power. In Baoding, weddings, daily interpersonal gifting, and casual gatherings among friends are the three core consumption scenarios, each with distinct cigarette requirements. Leveraging emerging social platforms to drive online-to-offline integration is essential for marketing in lower-tier markets.