Q3 consumer confidence levels at 3-year high: Nielsen

"The Tier 4 cities, many of which are located at the border of rural and urban China, are generally regarded as the regional center where rural consumers can shop or try out city life, making them as a bridge to connect urban consumption with rural consumption," Dodd said.

"Expansion by multinational and local companies and retailers into lower-tier cities will further unlock consumers' purchasing power in these emerging markets," he added.

According to Nielsen's findings, retail sales for fast-moving consumer goods (FMCG) in fourth-tier cities accounted for 44 percent of the nation's total in the third quarter, up 9 percent compared with the same period last year. Meanwhile, consumers from these cities generated 52 percent of China's total online shopping.

Apparel, accessories, cases and bags enjoyed the highest penetration, of around 88 percent of Chinese online shoppers, followed by products of daily use or household products, which attracted more than 73 percent of online shoppers, the Nielsen research showed.

Income (43 percent) and health (26 percent) remained the top concerns for Chinese consumers, according to the survey.

Increasing food prices, formerly ranked among the top three concerns, fell to fifth, following children's education and welfare, and personal career, and equally weighted with job security.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 29,000 respondents with Internet access in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

The Nielsen China Consumer Confidence Report, the largest of its kind, is compiled from a mixed-methodology survey of 3,500 respondents from across China - everywhere from key cities to rural countryside.

In other key developed economies, the Nielsen survey showed that the United States saw consumer confidence levels rise seven index points to 98 from the same period 12 months ago, its highest score in six years and nearing pre-recession levels.

Meanwhile, consumers in India and Brazil remain some of the most confident in the world.