Venture(US:VEMLY) Sou Hu Cai Jing·2025-09-28 14:38Core Insights - The article emphasizes that second-tier cities in China present more reliable business opportunities for ordinary entrepreneurs compared to first-tier cities and county towns [1][22]. Group 1: Business Environment in First-tier Cities - Many internet professionals in first-tier cities earn high salaries, but face significant living costs, particularly from housing, which limits disposable income [4][6]. - The rapid turnover of trendy restaurants in first-tier cities indicates a volatile market where consumer preferences change quickly, making it difficult for new businesses to sustain themselves [4][6]. - The outflow of young people from county towns leads to weakened consumer power, as these areas often lack diverse industries and high-income job opportunities [6][8]. Group 2: Advantages of Second-tier Cities - Second-tier cities like Chengdu, Hangzhou, and Wuhan have a stable middle-class consumer base supported by diverse industries such as foreign trade and high-end manufacturing [8][22]. - Lower living pressures in second-tier cities enhance consumer willingness to spend, creating a favorable environment for businesses [8][22]. - Nanjing's commercial vitality is highlighted by its top-ranking shopping mall, which achieved a sales figure of 24.5 billion yuan, surpassing major first-tier cities [10][12]. Group 3: Case Studies in Nanjing and Ningbo - Nanjing's Deji Plaza attracts not only local consumers but also shoppers from surrounding regions, indicating a strong regional consumer market [12][14]. - Ningbo's economic strength is rooted in its high-income population supported by advanced manufacturing, leading to a shift in consumer preferences towards quality and experience [16][18]. - The longevity of businesses in Ningbo, with many establishments operating successfully for over five years, reflects a stable market environment where quality and reputation matter [20][22]. Group 4: Conclusion on Entrepreneurship - Entrepreneurs are increasingly returning from first-tier cities to second-tier cities, finding more promising opportunities in traditional businesses like hotpot restaurants and bakeries [24]. - The article suggests that understanding local demands in second-tier cities can lead to successful business ventures, contrasting with the intense competition in first-tier cities [24].