How to cash in on consumer boom

Higher living standards and increased choices have fostered an appetite for premium products among affluent Chinese consumers, according to the latest survey from management consulting firm McKinsey & Company.

It found that 15 percent of consumers are willing to pay at least 60 percent more for high-end consumer electronics products, and up to 300 percent more for personal care products. Consumers with a monthly income above 5,000 yuan tend to be more willing to pay a premium, the report showed.

"We've noticed the emergence of an upper-middle class which has higher demands regarding goods and services," said Chen Yougang, principal at McKinsey. "Chinese consumers are getting more sophisticated and confident."