Mid-priced goods gain share in China as shoppers seek better value

Mid-priced products are gaining a larger share of China's in-store sales of everyday consumer goods as shoppers seek better quality within their budgets, consumer research firm NielsenIQ said.

Mid-range products accounted for 58 percent of offline fast-moving consumer goods sales in NIQ's figures through July this year, up 1.1 percentage points from a year earlier. Premium and budget products accounted for 18 percent and 24 percent, respectively, according to its outlook for 2027, released on Wednesday.

China's retail sales of consumer goods rose 1.1 percent year-on-year in the first nine months of 2026, the National Bureau of Statistics said.

NIQ said consumers were cutting back first on purchases they could postpone while protecting spending on everyday needs and future security.

Shoppers also want clearer reasons to spend. Some 68 percent of respondents said they would forgo a mid-priced purchase if it offered no clear advantage in quality, function or user experience.

"Consumers want every penny to count, and they also want better quality and experiences within their budgets," Luo Qi, NIQ's chief client officer for China, said.

Brands should not neglect products serving mainstream consumers by focusing too heavily on premium offerings or lower prices on the assumption that demand is polarizing, Luo said.

Reaching those consumers also requires brands to adapt to shifts in shopping channels. NIQ's figures through August showed online sales of fast-moving consumer goods through content-driven commerce rose 18.2 percent, while sales on general e-commerce platforms fell 2.7 percent.

Luo said brands should tailor their products, content and resources to each channel, with content-driven commerce needing to turn shoppers' initial interest into brand recognition and trust.

Technology is also changing how products are developed and chosen. NIQ said artificial intelligence was creating opportunities for brands to better understand consumers' needs and respond to changes in daily life.

For manufacturers, AI can help identify those needs, screen product concepts and refine offerings after launch, allowing companies to test ideas and adjust products more quickly, the report said. The aim should be to develop products that better meet demand rather than simply launch more of them.

Consumers, meanwhile, are using digital tools to compare prices and products and find options that suit their needs. In NIQ's survey, 73 percent of Chinese respondents said they frequently used AI tools to help select household products and groceries.

As AI plays a greater role in purchasing decisions, Luo said brands need consistent, accurate and verifiable product information so both shoppers and AI tools can recognize the value of their offerings.

"As some judgments and choices are assisted by technology, trust becomes a more important brand asset," Luo said.