• Retail sales of consumer goods in Beijing have exceeded 1 trillion yuan ($152 billion) in 2015, up 7.3 percent year on year, making Beijing China's biggest shopping city.

Retail sales of consumer goods in Beijing have exceeded 1 trillion yuan ($152 billion) in 2015, up 7.3 percent year on year, making Beijing China's biggest shopping city. (Photo : REUTERS)

More locally made fast moving consumer products (FMCP) are dominating the Chinese consumer market, according to a joint report submitted by Bain and Company and Kantar Worldpanel.

Sixteen out of 26 categories of FMCP are now local Chinese brands. The report stated that more Chinese consumers prefer locally made shampoo, skincare products, toothpaste, diapers and soap. Imported brands dominated categories like fabric softeners, infant milk formula, instant noodles and beer.

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The increase in consumer demand is reflected in the overall sales of local FMCP. Local brands' sales increased by about 7 percent, while imported brands' sales decreased by 1.4 percent.

By 2020, consumer goods are seen to dominate the Asian market. The industry is predicted to grow to $200 billion, said Fabio Vacirca, senior managing director of Accenture's products operating group in Asia Pacific.

The increase in sales of domestic-made products is attributed to more innovative marketing. Local producers improved their customer support systems and combined online and traditional marketing strategies.

Vacirca explained: "The entire sales and marketing ecosystem is changing dramatically on the back of the new generation of consumers and pervasive digital technologies. In Asian markets, the change is faster and in many cases it means leapfrogging the traditional models."

However, goods that are mostly bought by blue-collared consumers suffered recently, because many laborers have gone overseas. Many Chinese workers have relocated to neighboring countries like Bangladesh and Vietnam to earn bigger wages.

The growing middle class and white-collar consumers have shown an increase in purchases of both FMCP and non-FMCP items related to leisure and travel.

Locally made Chinese products are seen to grow even more in the coming years as the Chinese purchasing power strengthens.