People are also more inclined to buy such goods for gifts, as they believe decent packaging will make the products more presentable, Tan said.

"If the gift is very exquisite or holds high value, then both the sender and receiver feel honored." Dong said.

The problem is worsened by consumption involving the arbitrary use of public money.

The People's Daily survey quoted a shop assistant at an alcohol section of a different store. The assistant said the flashier the package, the better the alcohol sells, adding that a government department bought 20 bottles as presents.

Both Dong and Tan have called for stricter law and government regulations to solve the problem.

This month, Shanghai launched a local regulation to reduce unneeded packaging of products and violators will be subjected to fines of up to 50,000 yuan.