Summary of Conference Call Notes Industry Overview - The conference call discusses the **Chinese consumer market**, highlighting its transition into a new consumption era characterized by emotional consumption and the integration of AI applications. [1][2][5] Key Insights and Arguments - The **fifth consumption era** in China emphasizes "well-being," which includes both physical and emotional health, leading to a diversification of emotional consumption patterns, especially in first-tier cities. [1][7] - The **media sector** is positioned as a dual attribute of technology and discretionary consumption, benefiting from both new consumer trends and AI applications, which are expected to drive valuation reassessment. [1][6][10] - **Policy support** from the government is crucial in driving market growth, with a focus on urban renewal and the application of new technologies to stimulate economic activity. [1][9] - The **Japanese experience** in transitioning through consumption eras serves as a model for China, particularly in understanding consumer behavior and the importance of emotional value in purchasing decisions. [2][3][6] Emerging Trends - Emotional consumption is gaining traction as it reflects changes in social and economic cycles, aligning with the "well-being" concept introduced in Japan's fifth consumption era. [8] - The **rise of new consumer demands** in sectors such as beauty care, fitness, and card games is noted, particularly in lower-tier markets, indicating potential growth opportunities. [1][5] Important but Overlooked Content - The **impact of AI and new media** on the media sector is highlighted, with a focus on the integration of AI applications in enhancing consumer engagement and content delivery. [3][10] - The **China Securities Regulatory Commission's** policies on mergers and acquisitions are expected to invigorate the market, allowing companies to leverage strategic partnerships for growth. [3][11] - Specific **media sector companies** to watch include cinema chains like Wanda Film and Hengdian Film, as well as companies involved in IP derivatives and digital marketing, indicating a diverse investment landscape. [12][13] Conclusion - The conference call emphasizes the importance of understanding the evolving consumer landscape in China, driven by emotional values and supported by government policies, while also recognizing the potential of AI applications in reshaping the media sector. [1][2][10]

Core Insights - The core viewpoint is that China's economic, demographic, and consumption patterns are undergoing more drastic changes than Japan's, with the potential for the fifth consumption era to emerge in China earlier than in Japan [1][2]. Economic and Demographic Changes - China's economic growth rate is twice that of Japan, and the aging process of its population may occur even faster [1][2]. - The rapid development of the internet economy and e-commerce is a significant factor driving these changes [1][2]. Consumption Era Framework - The author categorizes consumption changes in Japan into four eras: 1. "Emergence of the Middle Class" (1912-1937) 2. "Family-Centric" (1945-1974) 3. "Individual Expression" (1975-1997) 4. "Shared Values" (1998-2020) [2]. - The fifth consumption era is defined as occurring from 2021 to 2043, focusing on spiritual fulfillment and community belonging rather than mere material possession [3]. Core Concepts of the Fifth Consumption Era - The concept of Well-being is central to the fifth consumption era, with consumer behavior revolving around seven S's: 1. Slow 2. Small 3. Sociable 4. Soft 5. Sustainable 6. Sensuous 7. Solution of Social Problems [3]. Shifts in Consumer Values - New generation consumers are shifting their values from competition and success to personal quality of life and inner satisfaction [4]. - The consumption trends in Japan are breaking age and gender boundaries, with single-person households expected to double the number of core families by 2040 [4]. Lifestyle and Consumption Patterns - The evolution of consumer behavior is described as "home-individual-street," indicating a shift towards mobile living spaces and a preference for convenience [4][5]. - Young people are increasingly adopting a "flea market" lifestyle, valuing leisure and self-exploration over traditional work ethics [5]. Reflection on Consumption - The author emphasizes that true consumption is a slow-paced behavior, reflecting a return to traditional values where people seek intimacy and sustainability in their lives [6].

Investment Rating - The report maintains a "Buy" rating for the media industry [6][21]. Core Insights - The evolution of consumer behavior in Japan's fifth consumption era highlights a shift from material quantity to quality, personalization, and emotional value, indicating that consumers are increasingly focused on well-being and life quality, which benefits the media sector [5][17]. - The report emphasizes the potential for domestic demand to drive growth in the media industry, supported by government policies and the integration of technology and content [5][19]. Summary by Sections Industry Overview and Dynamics - The media sector has shown varied performance, with the media index rising by 9.1% over one month, while the Shanghai Composite Index increased by 4.3% [3][15]. - The report notes significant fluctuations in individual stocks, with top gainers including Baotong Technology and Daocaoxiong Entertainment, while major losers included Wanda Film and Meiri Interactive [15]. Key Recommendations - The report recommends several stocks within the media sector, including: - Fengyuzhu (603466) focusing on experience economy - Mango Super Media (300413) benefiting from upcoming shows - Yaoyi Technology (002605) expected to recover due to card games [6][10]. - Other notable mentions include BlueFocus (300058), Wanda Film (002739), and Huace Film & TV (300133), all rated as "Buy" [10]. Market Trends - The report discusses the impact of the fifth consumption era on consumer preferences, emphasizing a focus on emotional resonance and value recognition rather than mere status symbols [17][19]. - It highlights the importance of the cinema line content sector, which is expected to benefit from government support and a growing domestic market [18]. Gaming Industry Insights - The gaming sector continues to thrive, with Tencent leading in mobile game revenues, and significant growth observed in titles like "Honor of Kings" [20]. - The report notes that 33 Chinese publishers ranked in the global top 100 for mobile game revenue, collectively earning $2 billion in April 2025 [20]. Upcoming Releases and Market Activity - The report outlines upcoming film releases, including "Chong·Zhuang," set to premiere on May 17, 2025, which is based on a true story [29][34]. - It also provides insights into the television ratings, with popular shows like "Cheng Jia" and "Man Hao De Ren Sheng" leading in viewership [35].

Investment Rating - The report maintains a "Buy" rating for the media industry [6][21]. Core Insights - The evolution of consumer behavior in Japan's fifth consumption era highlights a shift from material quantity to quality, personalization, and emotional value, indicating a growing focus on well-being and life quality, which is expected to benefit the media sector [5][17]. - The report emphasizes the importance of domestic demand and the dual nature of media as both a technology and consumer sector, suggesting that the integration of technology and content can stimulate curiosity-driven consumption [5][19]. Summary by Sections Industry Overview and Dynamics - The media sector has shown varied performance, with the media index rising by 9.1% over one month, while the Shanghai Composite Index increased by 4.3% [3][15]. - The report notes that the cinema content sector is still in a "low valley" and is expected to benefit from upcoming releases and policy support [18][19]. Key Recommended Stocks and Logic - The report recommends several stocks within the media sector, including: - Windy Zhi (603466) focusing on experience economy - Mango Super Media (300413) with upcoming variety shows - BlueFocus Communication (300058) as a leading digital marketing firm [6][10]. Game Industry Progress - In April 2025, Chinese mobile game publishers generated $2 billion, accounting for 38.4% of the global top 100 mobile game publishers' revenue, with Tencent leading the market [20]. Film Market - The report highlights the upcoming film "冲·撞" set to release on May 17, which is based on a true story, indicating a focus on culturally relevant content [29]. Television Market - The report provides insights into the television ratings, with "成家" leading the viewership, showcasing the competitive landscape in the drama sector [35]. Variety Show Market - The report mentions popular variety shows such as "哈哈哈哈哈 第五季," indicating strong viewer engagement in the entertainment sector [37].

Core Insights - The book "The Fifth Consumption Era" by Miura Noboru categorizes Japan's consumption changes into five distinct eras based on over 40 years of empirical research, highlighting a shift towards consumer experiences that emphasize inner joy, simplicity, and sustainable happiness [4][5]. Group 1: Consumer Trends - The transition in consumer mindset is from standardized consumption to personalized adaptation, reflecting a deeper inquiry into the meaning of consumption in an aging society [10][12]. - The example of Curves, a gym chain catering to older women, illustrates this trend, achieving over 1,900 locations and a membership retention rate three times higher than traditional gyms by creating a female-friendly environment [13][14]. - Curves' success is attributed to its unique approach of eliminating mirrors to reduce body anxiety, offering shorter workout sessions, and optimizing space usage to cater to different demographics throughout the day [18][20][22]. Group 2: Product Trends - The shift in consumer purchasing behavior is moving from a focus on expensive luxury items to a preference for quality at reasonable prices, emphasizing the importance of cost-effective solutions without compromising quality [25][26]. - Muji's strategy of reducing unnecessary costs while maintaining quality exemplifies this trend, demonstrating that consumers are increasingly seeking value rather than just low prices [27][28]. - The rise of local brands like Miniso and Xiaomi reflects a growing consumer awareness of the "value for money" principle, aligning with the modern consumer's desire for practicality and affordability [30]. Group 3: Consumption Scenarios - The evolution of consumption scenarios from family-oriented to individual and community-focused reflects changing social dynamics, with a growing emphasis on local community engagement [31][32]. - The emergence of hybrid spaces like coffee laundries in Japan showcases innovative business models that cater to the needs of single individuals and families, blending various services to enhance community interaction [34][36]. - This trend towards creating walkable, community-centric environments is seen as a potential model for urban development, emphasizing the importance of local connections in modern consumption [36].

Core Viewpoint - The article discusses the successful expansion of Pop Mart into the U.S. market, highlighting the popularity of its IP "labubu" and the significant revenue growth in overseas markets, particularly in North America, despite recent price increases [4][8][12]. Group 1: Market Performance - Pop Mart's IP "labubu" has seen a revenue surge, with its income exceeding 3 billion yuan globally last year, and U.S. sales in Q1 2025 surpassing the total sales of the previous year [4][8]. - The company's overseas business revenue grew by 475% year-on-year, with North America experiencing an astonishing growth rate of 895%-900% [8][9]. - The price of "labubu" products in the U.S. increased by approximately 30%, from $21.99 to $27.99, while other product prices also saw adjustments [5][6]. Group 2: Consumer Behavior - Despite the price hikes, consumer demand remains strong, with long queues observed at stores and high engagement on the Pop Mart app, indicating that consumers are willing to pay a premium for the brand [7][12]. - Some consumers expressed a willingness to pay higher prices due to the perceived scarcity and emotional value of the products, while others noted a shift in purchasing behavior, with some opting to buy from domestic platforms instead [7][10]. Group 3: Pricing Strategy - The price increases are seen as a strategic response to tariffs and market conditions, with the company needing to balance pricing without alienating consumers [6][10]. - Pop Mart's pricing strategy is informed by the "lipstick effect," where consumers may reduce larger expenditures but still engage in smaller, emotionally-driven purchases [9][10]. - The company is cautious about raising prices indiscriminately, focusing on maintaining brand value and consumer perception of worth [11][12]. Group 4: Future Outlook - Analysts suggest that Pop Mart is evolving into a brand comparable to Bandai Namco, LEGO, and Disney, with significant growth potential still ahead [12]. - The company's ability to innovate and create new popular IPs will be crucial for its long-term success, as reliance on existing products may lead to stagnation [13].

Core Viewpoint - The article discusses the successful expansion of Pop Mart's IP "labubu" into the U.S. market, highlighting significant sales growth and price adjustments that have not deterred consumer interest [4][7][8]. Group 1: Market Performance - Pop Mart's "labubu" IP generated over 3 billion yuan in revenue last year, with U.S. sales in Q1 2025 surpassing the total sales of the previous year [4]. - The company's overseas business revenue increased by 475% year-on-year, with the Americas market experiencing an astonishing growth rate of 895%-900% [8]. - The launch of the third-generation "labubu" plush toy led to long queues in stores across major cities, indicating strong consumer demand [5][7]. Group 2: Pricing Strategy - Pop Mart raised the price of "labubu" products in the U.S. by approximately 30%, from $21.99 to $27.99, while other new products also saw price increases [5][6]. - Despite the price hikes, consumer purchasing intent remained strong, with many willing to pay more due to the perceived scarcity and emotional value of the products [7][8]. - The company is cautious about pricing strategies, recognizing that excessive price increases could lead consumers to seek cheaper alternatives [9][10]. Group 3: Consumer Behavior - The article notes a shift in consumer behavior towards emotional and small-scale purchases, driven by economic conditions and societal changes [8][9]. - While new consumers are entering the market, there are concerns that some may not remain loyal after initial purchases [7][9]. - The "lipstick effect" suggests that during economic downturns, consumers may reduce larger expenditures but increase spending on smaller, emotionally-driven items [8]. Group 4: Competitive Landscape - Pop Mart views all emotional products as competitors, indicating a need for careful management of brand perception and pricing [9]. - The company is currently in a favorable position in overseas markets, with consumers willing to pay a premium for its products [11]. - The article warns that without continuous innovation and new product development, Pop Mart risks losing market momentum, similar to challenges faced by other brands like Nike [11][13].

未来10年，消费行业中哪一个赛道更具有发展潜力？ 现代的消费者追求的不是"快感"，而是"愉悦感"。第三消费社会之前的人类以"物"为焦点，而第四消费社会中人类以"人"为焦点。 对于人类来说，重要的不是消费了什么，而是和什么人一起做了什么。 虽然不知道哪个赛道比较好，但电商会进一步增加吧。婴儿潮世代会成为今后的老年人，需要面向这些人群，当然前提是，必须要尊重个人的 判断。 对于某一个品类会出现新商品，当前社会老龄化加剧，大家更加注重健康，对应的是市场的变化，更多的是在原有的基础上，基于个体情况的 多元化、个性化，改变了商品的使用方法。 比如，面向老年人不是说卖老年人的商品，而应该卖"年轻化"的商品。 如果没有多样化这个社会会饱和，而且如果不多样化，也不能制造出能够输出到海外的、有特色的产品。现在很遗憾地说，在全球人看来，特 别感受到中国魅力的产品还不多，所以我们可能更加需要好好地去思考什么是中国特色。 第三，随着生活越来越丰富、越来越好，大家会逐渐注重精神追求。 所谓精神上的追求更多是简约，刚才说到中国特色，是不是中国的特色和审美与简约是相悖的呢？ 未来10年，人们已经不再是单纯购买物质的消费者，开始追求人与人之 ...

慢（slow）、小（small）、软（soft）、社交（sociable）、可持续的（sustainable）。 首先是， 慢(Slow) 。 现在这个社会是快节奏的，工作是快节奏的、时尚是快时尚的、餐是快餐，所以有人提倡慢 餐。 什么是慢餐？我们要吃当地产的，并且自己去烹饪、去吃。 其次，是 小（small） 。 第五消费时代正在加速到来，这是因为科技的变化，比如说AI的盛行。 这是 被誉为 "日本消费社会研究第一人"的三浦展 ，在《孤独社会》一书中提到的。 那么，什么是第五消费时代？ 第五消费时代的关键词，可以用"5个S"来表述： 过去30年，全球建了很多大型购物中心、商超，通过大的硬件设施在其中进行消费，这样的模 式盛行于全球。 但是未来会怎样？未来人们越来越不喜欢大盒子式的消费场所，而是街边各种有特色的小店， 慢悠悠地去逛、去吃，这样的方式可能更加适合未来人的价值观。 如今因为AI技术，无人化逐渐盛行，特别是在疫情当中，大家一星期可能和别人说不上一句 话。所以，新冠也使很多人认识到了和别人交流有多么重要，和别人的沟通和交流是另外一个 "S"(Sociable) 就是社交。 还有一个就是全球注重 可持续 ...

Core Viewpoint - The fifth consumption era is accelerating due to technological changes, particularly the rise of AI [1][6]. Group 1: Definition of the Fifth Consumption Era - The fifth consumption era can be summarized with the "5 S" keywords: Slow, Small, Soft, Sociable, and Sustainable [3]. - "Slow" consumption emphasizes a shift from fast-paced lifestyles to more deliberate and mindful eating, such as slow food that focuses on local produce and home cooking [3][4]. - "Small" consumption indicates a move away from large shopping centers to unique, smaller shops that align with future values [5]. - "Sociable" consumption highlights the importance of communication and interaction, especially in the context of increased isolation during the pandemic [5]. - "Sustainable" consumption focuses on regional economies and a shift from large infrastructure projects to software and community-oriented developments [5]. Group 2: Trends and Predictions - The fifth consumption era is predicted to deepen the "lonely economy," driven by rising single rates, population decline, and aging demographics [6]. - There is a growing interest in new lifestyles and business opportunities in China, inspired by Japan's existing consumption models [7]. - The upcoming study trip to Japan aims to explore the "Japanese model" that has emerged from low-growth conditions, focusing on successful companies in various sectors [7][8].