Consumer confidence remains at record level in Q1: Nielsen

Chinese consumer confidence in the first quarter of 2014 stood at the same record-high level of 111 points as the previous quarter, and above the global average of 96 points, according to findings released Tuesday by global information provider Nielsen.

"Amid the slowdown in Chinese GDP growth from 7.7 percent in the fourth quarter of last year to 7.4 percent this quarter, Chinese consumer fundamentals remain strong," said Yan Xuan, president of Nielsen China, noting the Chinese consumer confidence is 3 points higher than [one year ago in] the first quarter of 2013.

Fast-moving consumer goods (FMCG) sales in Chinese market saw 8 percent growth in the first quarter, 2 percentage points higher than the same period of last year, according to data from Nielsen.

Retail sales of automotive products and communication devices had double-digit year-on-year growth of 12.3 percent and 14.7 percent respectively, while personal digital appliances topped consumers' shopping lists, followed by home appliances, the findings showed.

The Chinese consumer confidence index indicates a convergence trend by cities and regions for the first time, Yan said.

Consumer optimism in lower-tier cities is catching up with the first-tier cities and consumer confidence is rising in China's central and western regions, according to Yan.

In 17 FMCG categories measured by Nielsen, growth in central and western China is at least twice as fast as the national average growth, said Guo Lan, a senior director at Nielsen.

China's second-, third- and fourth-tier cities and rural regions contributed about 90 percent of China's total retail sales of liquid milk, yogurt and functional drinks, the top three FMCG categories which made up 39 percent of total FMCG growth in the past year, according to Nielsen's retail data.

In addition to the FMCG, central and western China also have a growing need for vehicles so automakers have already started research on these local markets, according to Yan.