Meaning:
“下沉” means “sinking,” and “市场” means “market.” This concept, referring to lower-tier markets, was raised by market researchers who study such brands as Pinduoduo and OYO Hotels. The lower-tier markets include about 200 cities, 3,000 counties and 40,000 townships in China. While about 390 million Chinese live in first- and second-tier cities, around 1 billion live in third-tier cities and rural areas. The huge population of lower-tier markets guarantees the success of such brands as Pinduoduo. They quickly attract clients with more affordable goods, taking advantage of the quick expansion of internet and logistic services in the country. Although people in small cities and rural areas earn less, the low living costs, particularly low property prices in those regions, have allowed people there to spend more. They also have more leisure time, compared with those living in big cities.
Example:
A: 你桌上的鲜花多少钱一束？
Nǐ zhuōshàng de xiānhuā duōshǎoqián yī shù？
How much did the bouquet on your desk cost you?
B: 九块钱，拼多多买的。针对下沉市场的公司就是定价便宜。
Jiǔkuàiqián， pīnduōduō mǎi de。 Zhēnduì xiàchén shìchǎng de gōngsī jiùshì dìngjià piányí。
Only nine yuan. I bought it on Pinduoduo. Those companies targeting customers in lower-tier markets often set their prices quite low.