Lower-tier cities hold great potential for consumption upgrading

Growing consumption demands in lower-tier cities mean great potential for the development of Chinese brands, according to industry insiders.

Lower-tier cities, which include third- and fourth-tier ones and those below, have seen significant consumption upgrading, said Chen Ke, a senior partner with global consultancy Roland Berger.

"If local brands can make products that are cost-efficient and of high quality, based on a deep understanding of consumers and marketing channels in these smaller cities, they will definitely make great progress," Chen said.