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"Consumers in China's less-developed regions are becoming increasingly sophisticated shoppers who are looking for lifestyle upgrades. This increased consumption potential could mean bright prospects for our merchants," said Jiang Fan, president of Alibaba's Tmall and Taobao.

"Compared with manual embroidery that requires time and patience, embroidery machines can help quickly complete large quantities of orders and meet demand from different customers. Despite the fact that we now use machines, traditional Miao embroidery culture remains the soul of these embroidered products," she said.

"Consumers look for high-end consumption environment and experience. They want to eat good food in a pleasant environment, demonstrating upgraded consumption demand," said the report.

"China's retail sales of consumer goods surged 9.8 percent year-on-year in June, especially driven by the rapid growing online sales and this year's June 18 retail festival," Mao said at a news briefing held on Monday in Beijing. "And we've witnessed fast growth in online sales of cosmetics and home appliances."

"Compared to our foreign counterparts, we know more about the country's consumption upgrades, and the conflict between the insufficient supply and the demand for high-quality products," said a spokesman of NetEase.