Core Insights - The report highlights that emotional consumption is becoming a dominant trend among young consumers, with 88.2% of them experiencing stress and over 60% believing that consumption can alleviate this stress [1][10][24] - Young consumers are increasingly prioritizing emotional satisfaction over functional needs, with nearly 30% of their spending directed towards interests and hobbies [1][16][24] - The rise of "emotional goods" aligns with Maslow's hierarchy of needs, as higher-level needs such as belonging, esteem, and aesthetics drive this shift in consumption behavior [1][16][24] Emotional Consumption Trends - Five distinct emotional consumer groups have been identified: - "Mad Master" who express rebellion through abstract products [2][38] - "Reward Personality" who indulge themselves with items that have a sense of ritual [2][51] - "Crispy Energy Saver" who use quirky items to cope with fatigue [2][61] - "Mysticism Enthusiast" who seek psychological comfort through spiritual items [2][62] - "Novelty Seeker" who are attracted to bizarre products [2][64] Market Growth Potential - The emotional consumption market in China is projected to experience significant growth, with an expected market size of over 2 trillion yuan by 2025 [26][28] - Related industries such as trendy toys, pets, cultural tourism, and food are witnessing substantial annual growth rates, indicating a robust market environment [24][28] Consumer Behavior Insights - Young consumers are increasingly willing to pay a premium for emotional value, with 90% expressing a readiness to spend more for emotional satisfaction [23][30] - The trend of "quick emotional recharge" is evident, as young consumers favor easily accessible products that provide instant gratification, such as stress relief toys and quirky collectibles [1][31][34] Social Media Influence - Platforms like Douyin (TikTok) play a crucial role in shaping emotional consumption trends, with significant engagement on topics related to stress relief products, indicating a strong demand for quick emotional fixes [1][31][34]

Core Insights - Non-standard commercial spaces are transforming the consumer landscape by emphasizing uniqueness and local culture, moving away from traditional shopping formats [1][2] - The rise of non-standard commercial reflects a shift in consumer psychology, where individuals seek to express their identity and preferences through their shopping experiences [1][2] Group 1: Characteristics of Non-Standard Commercial - Non-standard commercial is characterized by unique architectural forms, diverse business combinations, and innovative operational strategies, creating immersive experiences for consumers [1][2] - These spaces are designed to provide a dynamic shopping atmosphere that aligns with trends like "self-consumption" and "emotional consumption," fostering deeper emotional connections [2] Group 2: Market Dynamics - The growth of non-standard commercial is a direct response to consumer fatigue from homogenized shopping environments, prompting a reevaluation of traditional retail strategies [2][3] - Urban renewal initiatives are revitalizing old factories and traditional shopping centers, encouraging the development of hybrid, fashionable, and community-oriented commercial spaces [2] Group 3: Challenges and Strategies - Balancing uniqueness with commercial scalability is a key challenge for non-standard commercial entities, requiring precise target audience identification and thoughtful content planning [3] - Sustainable growth should focus on innovative core concepts rather than mere replication of successful models, ensuring the preservation of the non-standard essence [3]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights a moderate recovery in the beauty and cosmetics sector, with a notable performance in hair care and color cosmetics, indicating a stable growth trajectory [7][35] - The medical aesthetics sector is expected to gain momentum from the introduction of innovative products, particularly in the field of collagen and hair loss treatments [30][46] Summary by Sections Market Review - In June, the beauty and personal care index fell by 3.61%, ranking 31st among all primary industries, underperforming the market [14] - The medical aesthetics sector saw significant stock price increases for companies like Meili Tianyuan Medical Health (+64.4%), Yonghe Medical (+50.0%), and Sihuan Pharmaceutical (+13.3%) [20][26] - For the first half of 2025, the medical aesthetics sector recorded substantial gains, with Jinbo Biological (+124.6%), Yonghe Medical (+83.3%), and Meili Tianyuan Medical Health (+69.9%) leading the way [20][26] Medical Aesthetics - Jinbo Biological launched the world's first recombinant type III humanized collagen gel, HiveCOL, which is expected to revolutionize tissue regeneration [30] - Sihuan Pharmaceutical introduced new products targeting skin quality improvement and contour shaping, while Kedi's external finasteride spray received approval, marking a significant advancement in hair loss treatment [31][32] Cosmetics - The retail sales of cosmetics in the first half of 2025 reached 229.1 billion yuan, reflecting a year-on-year growth of 2.9% [35] - Online sales of cosmetics amounted to 267.83 billion yuan, growing by 11.1%, while offline sales decreased by 4.1% to 228.44 billion yuan [36] - The report emphasizes the strong performance of domestic brands in the online market, particularly on platforms like Douyin and Tmall [40][43] Investment Recommendations - The report recommends focusing on leading domestic beauty brands that are expected to gain market share, particularly in high-growth segments [46][47] - Key recommendations include companies like Shangmei Co., Ltd., Maogeping, and Pulaia, which are well-positioned to benefit from the ongoing trends in the beauty market [50]

Core Insights - The "One-Day Store Manager" model has evolved from a niche marketing tactic to a widespread phenomenon, reflecting a significant shift in consumer behavior among Generation Z, where emotional engagement is prioritized over mere transactions [5][6][29] - This model enhances brand identity by transforming brands from mere sellers to emotional connectors, fostering deeper relationships with consumers [6][29] - The rise of this model is driven by the explosive growth of emotional consumption, with brands leveraging celebrity and influencer partnerships to attract foot traffic and enhance brand perception [6][30] Group 1 - The "One-Day Store Manager" concept originated in Japan and gained traction in 2016, but has seen exponential growth in recent years due to rising emotional consumption demands [6][29] - Brands are increasingly using this model across various sectors, including beauty, fashion, and food, to create immersive experiences that resonate with consumers [6][30] - The model has proven effective in driving immediate sales and fostering long-term brand loyalty through emotional connections [30][33] Group 2 - For instance, the fast-fashion brand W.Management successfully implemented this model during its store opening in Beijing, engaging fans and creating a buzz through social media interactions [7][24] - The model not only boosts short-term sales but also helps in building a lasting relationship with consumers, as evidenced by the significant online engagement metrics [30][33] - The "One-Day Store Manager" events have generated substantial user-generated content, enhancing brand visibility and consumer loyalty [30][33] Group 3 - However, the model faces challenges such as high costs and potential low returns, as brands may struggle to align with top influencers effectively [56][57] - There is a risk of the model becoming a mere fan meet-and-greet, which could dilute its effectiveness and lead to consumer skepticism [57][58] - Brands must focus on genuine interactions and meaningful experiences to avoid the pitfalls of superficial engagement and ensure sustainable growth [63]

Group 1 - The core consumer group of Generation Z, defined as those born after 1995, represents about 20% of China's total population but accounts for 40% of the country's total consumption power, highlighting their significant influence on the market [1] - The rise of emotional consumption among Generation Z indicates a shift from practical needs to emotional and social values in purchasing decisions, with a willingness to pay a premium for products that enhance personal expression and social recognition [1][2] - The emotional consumption market in China is projected to exceed 2 trillion yuan by 2025, with related industries such as trendy toys, cultural tourism, and pet care experiencing an annual compound growth rate of 12% [2] Group 2 - The financial sector faces both opportunities and challenges due to the emotional consumption trend, with financial institutions beginning to innovate products tailored to meet the funding needs of Generation Z's emotional purchases [3] - There is a risk of accumulating debt among Generation Z due to unstable income levels and the tendency to over-leverage for emotional consumption, which poses a challenge for financial institutions in accurately assessing risks associated with such spending behaviors [3][4] - Regulatory bodies are tasked with ensuring that financial institutions operate responsibly in the emotional consumption space, preventing excessive marketing that could lead to irrational borrowing among young consumers [4]

Group 1 - Emotional value is driving consumer growth, with 99.9% of respondents willing to pay for emotional value, particularly for "emotional support" services [1] - The domestic healing economy market has reached 10 trillion yuan, growing at an annual rate of 10% globally, with healing home products seeing sales growth exceeding 40% [1][5] - The rise of emotional consumption is influencing retail business models, with shopping centers needing trendy brands to attract more foot traffic [1] Group 2 - Emotional consumption is becoming a necessity, with the proportion of spending on emotional consumption increasing by nearly 8 percentage points among those spending 21%-30% of their total [3] - The distribution of trendy toy brands is widespread, with over 350 stores operating in Shanghai, reflecting structural changes in the Chinese consumer market [3] - The healing economy is a significant segment of "new Chinese consumption," with a focus on cultural narratives and the aesthetics of slow living [5] Group 3 - The global healing economy is expected to reach $7 trillion by 2025, with the essential oil massage industry projected to reach $34.6 billion by 2030 [5] - The rise of the healing economy is driven by a shift from functional needs to emotional healing, particularly among Generation Z [5] - The market for aromatherapy is rapidly growing, with annual consumption growth rates of 20%-30%, and a "SPA + retail" model emerging [5]

Core Insights - The commercial market in Beijing is experiencing a significant boost with the introduction of major new projects and flagship stores, enhancing the offline consumption landscape [1][29] - The number of new flagship stores opened in Q2 2025 has surged, outperforming the previous two years, indicating a strong recovery in consumer interest [2][29] - The focus on experiential and emotional value in consumer behavior is driving innovation in the restaurant and retail sectors, with brands emphasizing customization and unique experiences [10][29] Group 1: New Store Openings - In Q2 2025, Beijing saw the opening of 80 flagship stores, a substantial increase from 48 in the same period last year and 50 two years ago [2] - The first month of May recorded the highest number of new flagship store openings, with 31 stores launched [3] - The new openings included 13 national flagship stores, 5 North China flagship stores, and 62 Beijing flagship stores, showcasing a diverse range of brands [4] Group 2: Sector Performance - The restaurant sector led the way with 42 new flagship stores, compared to 33 in retail, indicating a strong trend towards dining experiences [7] - Emerging restaurant brands are actively expanding, while retail brands are also eager to enter the Beijing market, reflecting growing confidence [7][24] - Notable new restaurant concepts include unique regional cuisines and innovative dining experiences, appealing to both local and tourist demographics [17][24] Group 3: Consumer Trends - The consumer market is undergoing a transformation, with a shift towards rational spending and a focus on experience and value [10] - Brands are increasingly adopting a multi-faceted approach to create engaging shopping and dining environments, enhancing the overall consumer experience [10][11] - The rise of the "self-indulgence economy" is evident, with brands focusing on personalized and immersive experiences [10] Group 4: Policy Support - Various government initiatives have been introduced to stimulate consumption, including financial support for commercial projects and the promotion of flagship store openings [29][30] - The Beijing government aims to establish the city as a global flagship center, encouraging the introduction of high-quality brands and innovative concepts [29][30] - Upcoming projects and urban renewal initiatives are expected to further enhance the commercial landscape and consumer engagement in the latter half of 2025 [30]

Core Insights - The high-end commercial battle is intensifying, with significant investments aimed at capturing market share, as seen in the expansion of luxury shopping centers and the introduction of innovative retail formats to meet diverse consumer demands [1][3][5] Group 1: Market Trends - The shift from material consumption to "emotional spending" is becoming a core driver of the Chinese consumer market, leading to the emergence of new consumption demands and markets [1][7] - The retail landscape is expected to focus more on emotional connections, community engagement, and mixed-use spaces, transitioning from mere transaction venues to platforms for social interaction [2][10] Group 2: Luxury Retail Developments - The opening of Louis Vuitton's "Louis" at Xinyi Taikoo Hui has significantly boosted foot traffic and sales, with weekend visitor numbers reaching 79,000 and 78,000, marking increases of 107% and 114% year-on-year, respectively [3][5] - Shanghai Hang Lung Plaza is undergoing a major expansion, adding approximately 3,080 square meters of retail space, which will increase its leasable area by 13% and accommodate around 25 new brands, expected to be completed by mid-2026 [5][6] Group 3: Consumer Behavior - Despite signs of fatigue in the luxury goods market, there is a strong interest from both developers and brands in expanding their presence in China, with many luxury and high-end lifestyle brands actively seeking to establish flagship stores [6][7] - The millennial generation is projected to contribute over 50% of luxury goods consumption by 2030, emphasizing the importance of immersive experiences and craftsmanship in driving purchasing decisions [7][9] Group 4: New Economic Trends - The rise of "二次元" (anime culture) and the pet economy is gaining traction, with significant events like the 2025 Bilibili World Digital Entertainment Expo attracting over 400,000 attendees, indicating a growing market for these themes [8][9] - The pet economy is projected to reach a market size of 300.2 billion yuan in 2024, with a 7.5% year-on-year growth, as more families consider pets as family members and invest in their well-being [9][10]

Group 1 - The core viewpoint is that China's service industry is experiencing a new trend of overseas expansion, with short dramas, mobile games, and trendy toys becoming significant carriers of new consumption forms, showing strong growth despite increasing tariff frictions this year [1][2]. Group 2 - New consumption overseas is experiencing a counter-trend explosion, with Sensor Tower data indicating that by Q1 2025, Chinese short drama platforms ReelShort and DramaBox will see revenue growth of 31% and 29% respectively, ranking first and second globally in short drama app revenue [2]. - In the gaming sector, 33 Chinese companies made it to the global top 100 mobile game publishers by June 2025, collectively accounting for 33% of the total revenue of the top 100 [2]. Group 3 - The underlying logic of the "dopamine economy" is that short dramas, games, and trendy toys effectively tap into user psychology, creating instant gratification and sustained anticipation, activating the brain's dopamine reward system [3]. - Data from 2020 to 2024 shows a surge in sales of healing toys in Europe, the US, and Japan, reflecting the rigid demand for emotional consumption [3]. Group 4 - The deepening of mobile internet has accelerated this trend, with over 1 billion internet users in China creating fragmented scenarios that promote the prosperity of UGC (User Generated Content) and PUGC (Professional User Generated Content) ecosystems [4]. - The market for mini-program games is expected to experience explosive growth from 2022 to 2024, providing fertile ground for "short and quick" content [4]. Group 5 - The industrialized production mechanism of short dramas involves neuroscience applications, with episodes typically lasting 5-15 minutes and featuring plot twists every 1-2 minutes to trigger dopamine release cycles [5]. - Data-driven production methods, such as A/B testing for content optimization, allow for rapid identification of user preferences through "small-scale trial and error" [5]. Group 6 - Innovations in business models, such as vertical screen formats and advertising monetization, lower user barriers and expand audiences, enabling efficient monetization through traffic and advertising [6]. - The development of short dramas over the past three years represents a reshaping of the content industry landscape and marks the beginning of an unstoppable journey overseas [6]. Group 7 - Chinese companies have a dual advantage in overseas expansion, benefiting from a vast talent pool of over 1 million art exam candidates and 400,000 design graduates annually, forming the world's largest creative talent reservoir [8]. - The business model leverages a complete supply chain, cost efficiency, global self-operated models, and IP creation, forming a tripartite new business model that provides inclusive products and services [8]. Group 8 - The transition from manufacturing to creation is evident as Chinese companies reconstruct global content industry rules through "dopamine products," moving from "Made in China" to "Created in China" with emotional consumer goods [9].

Group 1 - The new consumption models are emerging, with self-indulgent, emotional, and cultural entertainment consumption gaining popularity, leading to accelerated growth in quality consumption [1] - In the first half of the year, Zhejiang's total retail sales of consumer goods increased, with a growth rate that accelerated by 1.8 and 1.3 percentage points compared to the second half of last year and the entire last year, respectively [1] - Retail sales of sports and entertainment goods in Zhejiang increased by 57.6% year-on-year, while jewelry sales grew by 22.2% [1] Group 2 - The province hosted numerous large-scale concerts, attracting over 1.5 million attendees, which significantly boosted box office revenue and overall consumption [2] - The retail sales of new energy vehicles and energy-saving appliances in Zhejiang increased by 15.7% and 79.5%, respectively, in the first half of the year [2] - The holiday economy showed a notable impact, with tourism numbers during the "May Day" and "Dragon Boat" holidays increasing by 13.7% and 8.3% year-on-year, respectively, driving rapid growth in leisure and transportation services [2]