XIAOMI(HK:01810) Tebon Securities·2025-07-02 07:49Group 1: Current Market Trends - The retail sales of consumer goods reached 41,326 billion yuan in May, with a year-on-year growth of 6.4%, marking the highest level since 2024[10] - The growth rate of total retail sales from January to May 2025 was 5%, significantly higher than the 3.5% growth in 2024[10] - The "old-for-new" policy has led to impressive growth in specific sectors, with retail sales of home appliances and audio-visual equipment increasing by 53% year-on-year in May[12] Group 2: Quality Consumption Era - China has entered a quality consumption era, where consumers prioritize product quality over price, even if it requires more time and effort to find high-quality products[18] - The demand for quality consumption is closely linked to the transparency of product quality information and the reduction of trial-and-error consumption[18] - Successful products like "Nezha" and "Labubu" illustrate the importance of quality supply in creating demand, highlighting that good supply can effectively stimulate consumption[24] Group 3: Strategies for Boosting Consumption - To stimulate consumption, it is essential to stabilize income expectations and improve employment quality, focusing on policies that support the real estate and stock markets[34] - The government should encourage the creation of high-quality supply to drive demand, aligning with the emphasis on "leading new demand with high-quality supply"[33] - Key areas for policy focus include stabilizing the real estate market to counter negative wealth effects, enhancing stock market stability to improve residents' financial income, and ensuring employment quality to stabilize income expectations[34][37][39]