Introduction

With the rapid development of e-commerce in China, Daigou (surrogate shopping) platforms have gained significant traction in recent years. These platforms, which facilitate the purchase of foreign goods for Chinese consumers, have traditionally focused on first and second-tier cities. However, as these markets become increasingly saturated, Daigou platforms are now looking to expand their reach into lower-tier markets. This research explores the strategies that these platforms can employ to successfully penetrate and grow in these emerging markets.

Understanding Lower-tier Markets

Lower-tier markets in China, often referred to as "sinking markets," include third-tier cities, fourth-tier cities, and rural areas. These regions are characterized by a growing middle class with increasing disposable incomes and a strong desire for high-quality products. However, consumers in these areas often face limited access to international brands due to geographic and logistical constraints.

Challenges in Lower-tier Markets

Limited Brand Awareness:

Logistical Barriers:

Trust Issues:

Developmental Strategies for Daigou Platforms

Localized Marketing Campaigns:

Strategic Partnerships:

Education and Trust-building Initiatives:

Affordable Pricing and Promotions:

Conclusion

The expansion of Daigou platforms into lower-tier markets presents a significant growth opportunity. By understanding the unique characteristics and challenges of these markets, platforms can implement targeted strategies to build brand awareness, overcome logistical barriers, and establish trust among consumers. As these regions continue to develop, Daigou platforms that successfully navigate this expansion will be well-positioned to capture a larger share of the Chinese e-commerce market.