BYD(SZ:002594) Soochow Securities·2025-04-24 00:23Investment Rating - The industry investment rating is "Overweight" (maintained) [1][89] Core Insights - The report analyzes the characteristics of "New Consumption," which includes the formation of new consumption habits and the breaking of new brands into mainstream markets [3][6] - Key features of new consumption include "word-of-mouth" marketing, tradability, and the ability to create memes [20][30] - The report emphasizes the importance of understanding the "emotional value" that young consumers seek, which is primarily "voice rights" and "aesthetic rights" [48] - The selection criteria for a "New Consumption ETF Index" focus on the formation of new consumption habits and the breaking of new brands, with a notable emphasis on Hong Kong stocks over A-shares [49][52] Summary by Sections New Consumption Causes - New consumption arises from either the formation of new consumption habits or the breaking of new brands into broader markets [7][9] - Examples of new consumption habits include the rise of collectible toys, branded pet food, and ready-to-drink tea [8][14] - The breaking of new brands is illustrated by "Old Paved Gold" transitioning from a niche brand to a luxury brand and "Pop Mart" becoming a popular collectible brand [18][19] Characteristics of New Consumption - New consumption is characterized by "word-of-mouth" marketing, where users become brand advocates [21][32] - The tradability of products and the ability to create memes are crucial for brand promotion and consumer engagement [28][30] - The report highlights that successful new consumption brands often leverage IPOs and secondary markets to enhance their tradability and brand visibility [41][42] Young Consumers and Emotional Value - Understanding the emotional value sought by young consumers is critical for investing in new consumption [47][48] - The report identifies that young consumers desire brands that provide them with aesthetic and voice rights, which can lead to stronger brand loyalty and market penetration [48] ETF Index Selection Criteria - The selection for the "New Consumption ETF Index" is based on the emergence of new consumption habits and the breaking of new brands [51] - The report notes that the index will likely have a higher weight in Hong Kong stocks compared to A-shares, reflecting the market dynamics [52] Industry Characteristics - The report categorizes various sectors within new consumption, including collectibles, beauty and personal care, ready-to-drink tea, new energy vehicles, pet products, emerging toys, new home appliances, medical aesthetics, and bulk snacks [53] - Each sector is analyzed for its growth potential and the characteristics that align with new consumption trends [53][54][59][62][68][70][72][76][79][82]