Investment Rating - The report maintains an "Outperform" rating for the home appliance sector [7]. Core Insights - The pet industry continues to show high growth potential, with a significant increase in health product consumption among younger consumers, and the home appliance sector benefits from national subsidies [3][41]. - The overall e-commerce sales during the 618 shopping festival reached 855.6 billion yuan, a year-on-year increase of 15.2% [14]. - The home appliance sector's total sales amounted to 110.1 billion yuan, reflecting a year-on-year growth of approximately 46% [28]. - The health product sector saw total online sales of 14.3 billion yuan, with a year-on-year increase of 55% [35]. - Pet food sales totaled 7.5 billion yuan, marking a year-on-year growth of 36% [3]. Summary by Sections E-commerce Performance - The 618 shopping festival saw a prolonged sales period, with platforms like Tmall and JD.com reporting significant user growth and sales increases [14][15]. - Tmall's GMV (Gross Merchandise Volume) grew by 10% year-on-year, with over 453 brands achieving sales exceeding 100 million yuan [14]. - JD.com reported over 22 billion orders during the festival, with user numbers increasing by over 100% [15]. Pet Industry Insights - The pet industry experienced a remarkable performance during the 618 festival, with over 400 brands achieving sales growth exceeding 100% [20]. - New pet owners increased by 39%, indicating a growing market [20]. Home Appliance Sector - The home appliance sector benefited from national subsidies, leading to a significant increase in sales across various categories [28][34]. - Major brands like Midea, Haier, and Gree reported substantial sales growth, with Gree's ice washing category seeing a year-on-year increase of 3879% [40]. Health Products - The health product market is thriving, particularly among younger consumers who are increasingly health-conscious [35]. - Leading brands in the health product sector include Swisse and汤臣倍健, with a strong focus on products like collagen and fish oil [35]. Investment Recommendations - The report suggests focusing on major home appliance brands such as Midea, Haier, and Gree, as well as pet companies like Guibao Pet and Petty Co., which are expected to continue thriving in the current economic climate [41][42].