Obviously my opinion is subjective and simply based on what I see around me (and Shanghai is a 1st tier city) but I don't think that the average Chinese consumer will consider the 5C as targeted toward them specifically, or that they're being belittled by being sold what some here will consider and 'inferior' product. It's just competing with the lower end of the market that they're already used to.
For every iPhone I see in people's hands, I see plenty of oversized samsungs on the metro and then a ton of cheapo android phones from local manufacturers. The ironic tendency is that the smallest girls normally carry the biggest phones. Everyone sits on the metro in a trance either watching video or playing random games. So phablets are also popular as a convergence device.
I still see tons of 4/4S's but that may just be historic, it may also be that it's a low priced inroad into the apple brand. I think the 5C will succeed simply because it's new, has a bigger screen than the 4/4S and comes in candy colours. I see a load of people that cover their phones in stickers on the back and home button so customisation is also quite popular. Like I mentioned, these are the kind of consumer who lives at home (most young Chinese seem to live with their parents up until they get married - so few expenses) and many have a low salary so saving 2000rmb on a 5S is a big deal.
I've also noticed that as many have mentioned - you often pay upfront for the phone - say 5000rmb goes into your phone account when you start the contact, then it gets nibbled away with every month of service (plus an additional top up for service) so the upfront fee for the device is quite important. There are of course different setups but this is how a friend of mine does it on China Unicom. 'Credit' for the average consumer seems hard to swing because (rightly or wrongly) corporations don't trust that a consumer won't try to screw them over by vanishing with a phone they haven't paid for.
On the flip side, consumers with disposable income will tend to buy the "best" model they can, simply because it has more prestige. These kind of people like many see the apple brand as more affluent than something made around the pacific rim. For them the gold one will surely sell incredibly well. - also the kind of people who buy macbook pros to run windows on -_-
That was kind of long and rambling - but I hope my humble POV is interesting.