In 2012, Chinese brands accounted for 43 percent of the Chinese market in the personal digital gadgets category, versus 63 percent in 2017. For personal care products, Chinese brands made up 76 percent in 2017 compared with 61 percent in 2012, the report said.

"There is no longer a single, one-size-fits-all definition of Chinese consumers. These increasingly discerning shoppers are younger, focused on health, and more brand savvy than ever, and they demand more from the products and services they buy," said Guan Mingyu, partner of McKinsey& Co.

"Both global and local companies must understand these nuances if they hope to craft brand and product messages that appeal to them," he said.

The report also found that Chinese consumers will continue to become the backbone buyers of luxury products. In 2016, Chinese consumers spent 640 billion yuan ($102 billion) on luxury products, accounting for 32 percent of global consumption.