Consultancy firm McKinsey & Co. revealed that Chinese shoppers will increase their spending by 10 percent this year until the end of the decade as their wages increase. More than half of the consumers are anticipating a salary hike over the next five years.

But aside from filled up shopping trolleys, Bloomberg reported that people will begin spending more on luxury items and services including entertainment, spa visits, and travel. This shift shows the country's changing economy that was once boosted by heavy industry and exports, but is now being fueled by consumers and services. Aside from that, Chinese consumers will also begin using new products, retail experiences ,and services.

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"The focus is shifting to purchasing more premium products, and living a more balanced, healthy, and family-centric life," McKinsey noted.

The Chinese government has given more priority on economic growth this year and vowed it will avoid hard landing.

Even though the country's retail sale has plummeted in the first two months this year, it remains within a double digit growth rate. CLSA Ltd. said that travel ticket sales could surpass United States as early as next year, whereas outbound trips could reach up t 200 million by 2020.

However, international companies are also hoping to attract a greater portion of the market. While international namesakes dominate the premium sector, domestic firms are taking over the market's mass segment.

"While scale, speed, and simplicity proved advantageous during the past 15 to 20 years, the changing shape of Chinese consumption is set to topple some giants of the past, and elevate new champions," McKinsey said.

The firm had 10,000 participants between ages 18 and 65 from more than 40 Chinese cities for the survey. 

Tagsconsumers, Chinese consumers, luxury items, premium products, McKinsey & Co., Chinese Economy, Chinese data