Via China Daily

A customer has her face scanned by a face-recognition system with added beauty filters, supported by Alipay’s technology, at a bookstore on July 17, 2019. [Photo/IC]

BEIJING – Young consumers in China’s small towns or lower-tier cities will likely power the country’s digital consumption growth, according to a report by consultancy McKinsey & Company.

The proportion of young Chinese shopping online in lower-tier cities is almost on par with that in first-tier cities such as Beijing and Shanghai, the consultancy said, citing a recent survey.

As some luxury brands have not yet opened brick-and-mortar stores in small towns and lower-tier cities, consumers in these areas are more likely to buy luxuries online than their counterparts in big cities, the report said.

Compared with big-city consumers, young Chinese in small towns usually have lower costs of living and more time to spend.

China has a $1.5 trillion e-commerce market, making it one of the most attractive market for global retailers, the report said.

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