Residents in "no hurry" compared to nearby Shanghai

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NANJING--Now only the capital of Jiangsu Province, Nanjing was one of the four great ancient capital cities in China, dating back to 472 B.C. Today, it is better known politically as the capital of Sun Yat-sen’s Republic of China early in the last century and, later on, for the brutal war crimes carried out by Japanese troops from December 1937 to February 1938.

Today, this green, hilly city in the lower reaches of the Yangtze River boasts a large number of temples, presidential palaces and other cultural sites reflecting past glories. But it is also one of China’s most modern cities and has become a major economic center, second only to Shanghai in eastern China. Electronics, automobiles, petrochemicals, iron and steel and electric power are the city’s pillar industries, and Nanjing is China's third-largest science and technology R&D base, behind Beijing and Shanghai, just a four-hour drive away.

The city’s average annual GDP growth rate is 12.2%, easily exceeding the national average in recent years, and disposable income for the urban residents increased by 11.3% in 2003, according to government figures. Consumer retail sales grew 14% over the previous year, putting Nanjing among the ten strongest consumer markets within China.

Even so, Nanjing’s mostly-urban consumers are less stylish compared to nearby Shanghainese, although they do share their neighbors’ preference for sweet and sour food, compared to the spicy cuisine of western China and Beijingers' affinity for salt.

”Relatively speaking, compared to tier one cities such as Shanghai, Beijing, Guangzhou and Shenzhen, Nanjing consumers have less disposable income and its entertainment industry (bars, cinemas, coffee shops, etc.) is less prosperous. Residents in Nanjing live at a slower rhythm and its people have a more gentle, mild ‘no hurry’ attitude,” said Diana Ying, consumer studies director of WPP Group’s Bates Asia in Shanghai.

“There's still a gap in level of sophistication and westernization between Shanghai and Nanjing,” said Shantel Wong, Starbuck’s newly-appointed VP-marketing, Greater China for Starbucks.

Many marketers have assumed that Nanjing residents, compared to Shanghainese or other cities in Jiangsu province, are less receptive to Japanese goods, due to the city’s tragic World War II experiences.

Ms. Wong believes this sentiment “is true, but mostly among older consumers, whose sense of nationalism is stronger than that of Shanghainese, it’s closer to Beijingers. When it comes to brand and product choices, younger generations do not seem to be affected. If it's fashionable and trendy, young people will go for it.”

Fast Facts: Nanjing

Population: 5.60 million
GDP (2004): $23.01 billion (191 billion RMB)
TV households (2005 est.): 774,000
Ad spend (2005): $1.51 billion (12.57 billion RMB)*
Ad spend (2004): $1.06 billion (8.77 billion RMB)*
Year-on-year increase: 43.3%*
Ad spend as a percentage of GDP (2004): 4.6%
Average minutes viewed per day per viewer of all channels (aged 4+): 152.3
Basic monthly cable subscription: $1.57
*based on published rate card

Average cost of 30” spot during prime time on Jiangsu TV - City, the city’s most-watched local channel (based on rate card):
18:45-19:10 - $2,169
19:10-19:55 - $1,928
20:00-21:00 - $1,801
21:00-21:40 - $1,801

Top 10 brands by ad spend on TV (2005)
1. Oil of Olay (Procter & Gamble)
2. Rejoice (Procter & Gamble)
3. Crest (Procter & Gamble)
4. Colgate (Colgate Palmolive)
5. Head & Shoulders (Procter & Gamble)
6. Safeguard (Procter & Gamble)
7. McDonald’s (McDonald’s Corp.)
8. Pantene (Procter & Gamble)
9. 999 Pharm (Chinese cough & cold prep/ medicated cream)
10. Lux (Unilever)
(Local channels only, based on rate card.)

Top 10 advertising categories on TV (2005)
1. Shampoo & Conditioner
2. Skin Care
3. Toothpaste & Oral Hygiene
4. Professional Services
5. Tonic & Vitamin
6. Soap
7. Communication Equipment & Services
8. Fast food
9. Laundry Products
10. Cough & Cold Preperation
(Local channels only, based on rate card.)

Top 5 local channels by ad revenue
1. Jiangsu Satellite TV
2. Jiangsu TV - Variety l
3. Jiangsu TV - City
4. Nanjing TV 1 - News & Variety
5. Nanjing TV 6 - Science & Education

Sources: Nielsen Media Research & AGB Nielsen Media Research
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