Domestic brands at top of list for buyers

Chinese shoppers, more aware of food safety than before and with higher disposable incomes, are spending more on premium products than their peers in Europe and United States where consumers remain cautious after a long period of economic gloom, Yu said.

Beverage, cooking oil and personal care products provide a clearly marked path for consumers to trade up to more advanced formats or add a new step to an existing regime.

For example, consumers have moved from two-step to four-step daily dental care that includes toothbrush, toothpaste, mouthwash and dental floss.

Chinese fast-moving consumer goods brands have responded to demand for premium and luxury products that are widely recognized in top-tier cites.

Nearly a third of all fast-moving consumer goods are now sold online in China, up from 19 percent two years ago.

It's expected that more lower-tier cities will catch up to those high levels of penetration over the next few years as e-commerce retailers expand their networks and reach.

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