Agreed Xu Feifei, assistant partner at branding and marketing consultancy Prophet, who believed that a name is usually the very first thing people experience or encounter about a brand, making it perhaps the most important part of its identity.

Chinese companies like Alibaba are proactively using their seamless digital marketing matrix to help brands navigate the complex marketing landscape, said Michael Dunn, chairman and CEO of Prophet, a global brand and marketing consultancy.

Xu Feifei, associate partner at global consultancy Prophet, said that while lower-tier cities previously were less brand-conscious and placed more importance on pricing, rising disposable incomes and diversification of spending behaviors will slowly change that.

This has resulted in exponential expansion of the market with an annual growth rate of over 40 percent, said Eric Hor, associate partner of global consultancy Prophet.

"By having their brands exposed during hot sports events, companies can reach their potential consumers in a more efficient way, so as to help increase sales and expand brand influence," said Leon Zhang, partner of global consultancy Prophet.

Zhang from Prophet said since there are still more than a couple of years to 2022, more brands are preparing for related promotions.

Dyson, a household appliance maker from the United Kingdom, reported a 118-percent rise in sales in Chinese lower-tier cities this year, compared to 21 percent in first-tier cities, according to a report from global consultancy Prophet.

As the competition in the first-tier cities became fiercer, heading for the lower-tier markets became a necessity for companies to drive new business growth," said Xu Feifei, associate partner of Prophet.

However, winning with these consumers is no longer simply pushing what was popular in higher-tier cities, the Prophet report showed.

Xu Feifei, associate partner of leading global consultancy Prophet, said international snack giants such as Nestle and Mondelez have had a presence in China and command a large market shares.

Xu from Prophet said localization is important for companies going abroad.

According to the China Brand Relevance Index from research firm Prophet, innovation, rather than price and value, is fueling the growth of domestic Chinese brands.