Those stores are located mostly in first-tier and second-tier cities, but we are sure that it will penetrate into a broader Chinese market, in the third-tier and fourth-tier cities, " Liu says."

这些专卖店都将落户于中国的一线和二线城市，但是我们也肯定，中国的三线和丝线城市也将是中国的一大市场。

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They're already moving beyond early target cities like Beijing and Shanghai into second-tier cities.

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"Local governments are also keener to support e-commerce retailers, which contributes to higher employment and meaningful tax revenue for the city, " said Mr. Shen, adding that the company plans to expand further in first-tier cities such as Beijing, Shanghai and Guangzhou, where it currently has a presence, and into second-tier cities such as Chongqing and Chengdu.

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Hardest hit, say analysts, are those brands that haven't built up nationally by expanding into second- and third-tier cities developed provincial capitals and prefecture or country-level city capitals where consumer demand is still strong.

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