Slowing economic growth and changing consumer behavior are reshaping the strategies pursued by multinational companies in the Chinese market, as innovation and marketing are becoming more important than geographic expansion, a report by consultants Booz & Co said.

"Chinese consumers are increasingly opting for quality goods at higher prices and adopting online shopping and social media to gather product information, which are the two key trends driving company strategy in China," according to a report by the United States-based consulting firm.

The report's findings were based on an annual survey of 89 companies, mostly multinationals, conducted jointly by Booz and the American Chamber of Commerce in Shanghai.