Changjiang Securities·2025-07-01 01:21Investment Rating - The report maintains a "Positive" investment rating for the industry [4]. Core Insights - The report highlights the emergence of new consumer brands driven by the deep segmentation of consumer demand, characterized by functional, emotional, and cultural consumption [10][11]. - It emphasizes the cultural roots and selective customer base of brands like Lao Pu Gold and Mao Ge Ping, which are positioned in the entry-level high-end price segment [29][30]. - The report identifies a K-shaped trend in the industry, suggesting that brands that can meet consumer needs in functional, emotional, and cultural aspects will thrive [68]. Summary by Sections 1. Rise Drivers: Demand Segmentation and Market Fragmentation - Consumer demand is deeply segmented into three attributes: functional, emotional, and cultural, leading to the rise of new consumer brands [10][11]. - The supply side is experiencing a fragmentation phase, with new brands emerging due to changes in distribution channels and the increasing share of e-commerce [15][19]. 2. Common Patterns: Cultural Roots and Selective Customer Base - Both Lao Pu Gold and Mao Ge Ping are positioned in the entry-level high-end market, appealing to a broad customer base while maintaining a high-end image [29][30]. - The brands utilize a direct sales model to provide in-depth services to their target demographics, enhancing the customer experience [33][36]. 3. Core Advantages: Differentiation and Systematic Foundation - Product differentiation is key for both brands, with Lao Pu Gold focusing on unique gold products and Mao Ge Ping on specialized makeup items [58][61]. - The systematic capabilities of these brands, including brand endorsement, channel service, and product positioning, are seen as their long-term competitive advantages [62][64]. 4. Investment Recommendations: K-shaped Trend and Extreme Interpretation - The report recommends focusing on brands that can meet consumer needs in functional, emotional, and cultural dimensions, particularly those positioned in the high-end market like Lao Pu Gold and Mao Ge Ping [68][69]. - It also suggests looking at companies with strong supply chains and organizational efficiency in the beauty and jewelry sectors, such as Shangmei Co. and Caibai Co. [69].