Consumers in lower-tier cities driving consumption demand

China's massiveness and complexity mean that the term "Chinese consumer" is insufficient by default. If you are ever familiar with the "silo" system categorizing different Chinese cities, people's tastes and spending power may vary, from tier-one to tier-four, categorically.

But as more multifaceted sets of consumer segments are revealed, one cannot be more wrong than simply assuming that people in Shanghai - China's most affluent city by GDP - are naturally generous spenders than those in, say, inland Central China's Henan province.

The truth is: The consumption locomotive has quietly shifted gear in the past few months. While big city residents could have more disposable incomes in absolute terms, it is their peers in lower-tier cities and townships that are willing to spend a premium for items, from avocados to sparkling water.