Core Viewpoint - The article discusses the emerging trends in consumer behavior, particularly focusing on the phenomenon of "emotional consumption" and the impact of socio-economic changes on consumer preferences [3][4]. Group 1: Trends in Consumer Behavior - The rise of cultural trends like LABUBU indicates a shift towards "cultural tourism" as a new form of consumer engagement, reflecting a desire for spiritual comfort [3]. - The concept of "first-store economy" is revitalizing urban areas, creating new consumer experiences and opportunities [3]. - The live event aims to explore how to identify and lead the next wave of consumer trends in an increasingly materialistic society [3]. Group 2: Insights from Key Speakers - Xu Jin, editor-in-chief of FT Chinese Network, will analyze the definition and characteristics of the "soft class," correcting common misconceptions about consumption and its relationship with economic growth, while predicting future hotspots in consumption [4][6]. - Cao Hu, global partner at Kotler Consulting Group, will discuss the essence of emotional consumption, emphasizing the need for companies to understand consumer preferences and values, and predict that sectors resonating with emotional needs will become future consumption hotspots [4][8]. - Tang Fei, founder of Strategic Marketing Consulting, will address the trend of consumption stratification, highlighting the shift from ostentatious to rational spending, and predict that future consumption will focus on emotional, health-oriented, and sustainable products, particularly in lower-tier cities [4][10]. Group 3: Event Details - The live event will feature three influential bloggers in the field of consumer research, providing insights into the underlying causes and trends of phenomenon-level consumption [4][11]. - The event is scheduled for July 30 at 18:00, aiming to uncover the reasons behind phenomenon-level consumption and offer valuable references before the next wave of consumer trends emerges [12].

Core Viewpoint - The rise of emotional consumption reflects a shift in consumer preferences towards personalized, emotional experiences rather than mere material possession, indicating a significant potential for consumption upgrade in the market [1][2][4]. Group 1: Emotional Consumption Trends - Emotional consumption is gaining traction, with consumers increasingly valuing experiences that provide emotional satisfaction, such as surprise and interaction, over traditional material goods [2][3]. - The market for emotional consumption in China is projected to exceed 20 trillion yuan, highlighting its substantial growth potential [1]. - The "accompanying economy," represented by pet ownership, is also on the rise, with the urban pet consumption market expected to surpass 300 billion yuan by 2024 [1]. Group 2: Market Opportunities and Challenges - Businesses must focus on delivering high-quality services and understanding consumer emotions to capitalize on the emotional consumption trend, as superficial marketing strategies may lead to consumer dissatisfaction [2][3]. - The emotional consumption market requires a supportive regulatory environment to address issues like false advertising and consumer rights protection, ensuring sustainable industry growth [3][4]. - The government's initiative to promote new consumption models emphasizes the importance of enhancing consumer experience and quality, which aligns with the growing demand for personalized and aesthetic consumption [4].

Group 1 - The core viewpoint emphasizes the growing trend of emotional consumption, driven by consumers' desire for personalized and emotional experiences, which presents new growth opportunities for the economy [1][4] - The market for emotional consumption is projected to exceed 20 trillion yuan, indicating significant potential for this sector [1][2] - The rise of the "accompanying economy," particularly in pet ownership, is highlighted, with the urban pet consumption market expected to surpass 300 billion yuan by 2024 [1][2] Group 2 - The younger generation is increasingly seeking emotional connections and experiences over mere material possessions, which is reshaping consumption patterns [2][3] - Businesses must focus on delivering high-quality services and understanding consumer emotions to succeed in the emotional consumption market, rather than relying solely on emotional value as a selling point [2][3] - The need for a clearer regulatory framework and consumer protection measures is essential for the sustainable development of emotional consumption, as it often lacks quantifiable standards [3][4]

Core Viewpoint - The forum emphasizes the integration of advertising, branding, and cultural tourism, showcasing innovative achievements in the digital era to inject new momentum into industry transformation and upgrading [1] Group 1: Industry Challenges and Solutions - The cultural tourism industry faces three main pain points: supply imbalance, homogenized experiences, and a scarcity of quality content [3] - NetEase proposes a unique content production model: "Destination Self-Creation + Institutional Empowerment + User Co-Creation" to address these challenges [3] Group 2: Project Highlights - NetEase collaborates with Wenzhou Taishun to create a cultural tourism project using a "1+N" model, focusing on local characteristics and integrating various platform resources [3] - The project includes initiatives like promoting local specialties through e-commerce, transforming traditional clothing into digital skins for games, and creating original songs inspired by local culture [3] Group 3: Differentiation in Content Creation - Key breakthroughs for differentiation in cultural tourism marketing include deep cultural exploration, reconstructing experiential scenarios, and promoting cross-industry integration [4][5] - NetEase leverages its comprehensive capabilities as an internet technology company to create differentiated cultural tourism content [5] Group 4: Evolving Consumer Demands - There is a notable shift in consumer demands towards emotional consumption, with a focus on obtaining emotional value rather than just functional satisfaction [7] - The transfer of experience sovereignty is evident, as consumers now have more autonomy in deciding their travel destinations [7] - Marketing strategies have evolved from "buying traffic" to "creating traffic," necessitating the development of projects that genuinely attract user interest [7] Group 5: Response to Market Changes - In response to changing demands, NetEase has initiated projects focused on traditional culture, collaborating with non-heritage masters to create content that resonates with younger audiences [8] - The company has made significant investments in AI to enhance content creation efficiency, reducing the time required for content development [8] - NetEase continues to partner with various organizations to co-create content, leveraging its content insight and production capabilities for mutual benefits [8]

Group 1 - The core viewpoint of the articles highlights the rise of a new consumption wave driven by "emotional value," where consumers, especially the younger generation, prioritize "emotional price ratio" over traditional price-performance ratio [1][2] - The younger generation is becoming the main consumer force, with their spending increasingly influenced by the need to alleviate negative emotions and express themselves through consumption [2] - Emotional consumption is reshaping industry chains and driving traditional industries to upgrade, as seen in the emergence of creative products that integrate cultural elements and the growth of the pet economy [2] Group 2 - Despite the growth of the "self-indulgence economy," challenges exist, such as high prices for some products and services, and difficulties in consumer rights protection [3] - There is a need for a balanced approach between prosperity and rationality in emotional consumption, to avoid pitfalls of over-commercialization and emotional alienation [3] - The industry should focus on optimizing the policy environment, enhancing market regulation, and encouraging deeper cultural exploration and creativity to fully realize the potential of the "happiness economy" [3]

Core Insights - The rapid rise of the song "大展鸿图" by the 27-year-old rapper 揽佬 highlights the transformative impact of digital platforms on the music industry, showcasing a shift towards a new ecosystem driven by algorithmic empowerment and decentralized distribution [1][2][3] Industry Trends - Streaming revenue is projected to account for 69% of global recorded music revenue in 2024, while physical music revenue will only represent 16.4%, and download revenue continues to decline, now at 2.8% [2] - The emergence of short video platforms has enhanced audience engagement, turning consumers into active participants in music dissemination, as seen with the viral dance trends associated with "大展鸿图" [2][3] Revenue Models - The revenue model for streaming platforms has evolved, with a greater reliance on subscription services and new traffic sources, as traditional social entertainment revenue has seen a decline, exemplified by Tencent Music's 11.9% year-on-year drop in social entertainment revenue [3] - The algorithm has replaced traditional radio as the primary distribution channel for music, leading to a shift in how copyright revenues are generated, focusing more on algorithm-driven value [3] Market Dynamics - The success of artists like 揽佬 and 58-year-old 那艺娜, who gained popularity through short video platforms, reflects a new collaborative ecosystem in the music industry, where emotional consumption and community engagement are becoming key growth drivers for streaming platforms [4]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The retail industry is experiencing a recovery, with significant growth in specific segments such as beauty and jewelry, driven by consumer sentiment and innovative business models [8][30] - The launch of the AI model by Yiwu Small Commodity City is expected to enhance operational efficiency and empower merchants, indicating a shift towards technology-driven business practices [25][26] Summary by Sections Retail Market Review - The retail industry index rose by 3.28% during the week of July 21-25, outperforming the Shanghai Composite Index by 1.61 percentage points [7][14] - The brand cosmetics sector saw the highest weekly increase of 5.94%, while the jewelry sector led the year-to-date performance with a 28.93% increase [17][20] Industry Dynamics - Yiwu Small Commodity City partnered with Alibaba to initiate the AI model testing, which is expected to transform traditional trade practices and enhance global trade linkages [25][26] - Over 30,000 merchants in Yiwu are utilizing AI tools, with deep users experiencing over 30% growth in orders, showcasing the impact of AI on operational efficiency and brand enhancement [26] Investment Recommendations - Focus on high-quality companies in sectors benefiting from emotional consumption themes, including: - Gold and jewelry brands with differentiated product offerings, such as Laopuhuang and Chaohongji [8][30] - Retail enterprises adapting to trends, like Yonghui Supermarket and Aiyingshi [8][30] - Domestic beauty brands with strong growth potential, including Maogeping and Pola [8][30] - Medical beauty product manufacturers with unique pipelines, such as Aimeike and Kedi-B [8][30] Company-Specific Insights - Laopuhuang reported a revenue increase of 167.5% and a net profit increase of 253.9% in FY2024, indicating strong brand expansion [32] - Chaohongji achieved a revenue growth of 25.4% in Q1 2025, driven by its focus on fashionable jewelry targeting younger consumers [40] - Maogeping's revenue grew by 34.6% in FY2024, reflecting its position as a leading domestic high-end beauty brand [32] - Pola's revenue increased by 21.0% in FY2024, supported by a robust product lineup [32]

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]