Chinese consumers are more bullish on domestic products as local brands are beating global rivals in the market, according to Bruno Lannes, a partner of Bain & Company. 

Bain & Company has been tracing Chinese consumers' behavior for many years. This year, they observed that more and more home-grown brands are doing well in the market and consumers here increasingly believe these brands are comparable. 

The partner listed three essential characters of Chinese brands' success. The first factor is that Chinese brands are very "entrepreneurial and have operating model which is very light. So they make big difference with some large companies."

"The second thing is innovation," Lannes noted, adding that small local brands are precisely positioning on Chinese consumers, which are sometimes not identified by large businesses.  

And the partner mentioned that the third important feature is the way these domestic brands engage with consumers – the social media they used, applications they used, etc. As Bain reported, Chinese consumers spend nearly six hours per day on smartphones.  

"That's why business owners can even encourage people to use social media while shopping by including social media. If people know they can find out about specials on social media, they'll go check it out," Lannes further elaborated.

Meanwhile, Bain figured out the change of luxury market in China – there has been a major generational change in the consumer base with the arrival of the Millennials.

"They accounted for 85 percent of the luxury market's growth last year, and they bring different values about luxury consumption across all the product categories," the partner said.

From his perspective, behaviors of millennials are influencing other generations, and the effective conversation between brands and consumers created a "Millennial Mindset."

Based on his observation, consumer-focused innovation will be a key growth driver in the new and re-balanced period of China. "It is consumer-focused innovation that has took a proven idea and has added new functions that have local relevance," he stressed.

Moreover, Lannes advised brands to focus on building strong and innovative brand's image in order to maintain competitiveness.

"They need to accelerate their response to evolving trends and needs, and communicate more effectively the role they can play in advancing consumers' hopes, expectations and aspirations using digital and mobile," the partner said.