Core Viewpoint - The current Chinese consumer market is characterized by "consumption stratification" rather than a simple "consumption downgrade," with consumers willing to pay for "quality low prices" and "justifiable premiums" [1] Group 1: Market Trends - Overall consumption remains insufficient, but new consumption trends are emerging as hotspots [1] - The transition from mass consumption to personalized and rational consumption is underway in China [1] Group 2: Structural Highlights - Structural highlights in the consumption market must be built on a stable macroeconomic foundation [1] - The consumption willingness and ability of Generation Z, along with their focus on value-for-money and quality-price ratios, are driving the new consumption wave [1] Group 3: Regional Insights - The negative impact of real estate on lower-tier cities is gradually diminishing, which is helping to release consumption potential [1]

Core Viewpoint - The article emphasizes that despite overall consumption being insufficient, new consumption trends are emerging, characterized by "consumption upgrading" rather than simple "consumption downgrading" [1][4]. Group 1: Current Consumption Landscape - The Chinese consumption market is transitioning from mass consumption to personalized and rational consumption, driven by the Z generation's willingness to pay for quality and emotional value [1][11]. - Overall consumption remains subdued, with per capita consumer spending and CPI below pre-2020 trends, yet new consumption hotspots are emerging, with certain sectors like tea drinks and light luxury goods experiencing significant growth [1][4]. - New consumption enterprises achieved an average revenue growth of 65% in 2024, significantly outpacing the overall resident consumption growth of 5.3% and the revenue growth of the consumer sector at 2.4% [1][4]. Group 2: Characteristics of New Consumption - The Chinese consumption market reflects a trend of "consumption upgrading," where consumers prioritize quality-price ratio and emotional value over merely seeking low prices [4][11]. - New consumption representatives have an average gross margin of 50.9%, which is substantially higher than the 23.9% of the consumer sector and 7.8% of the overall manufacturing sector [4][8]. - Key factors influencing consumer purchasing decisions include product quality, emotional value, and cost-effectiveness, with Z generation consumers particularly valuing emotional and quality aspects [7][23]. Group 3: Demographic Insights - The Z generation (ages 16-30) is becoming a driving force in the new consumption wave, showing the highest optimism about consumption prospects among all age groups [23]. - Z generation consumers exhibit a strong preference for emotional value and quality, with 40.1% prioritizing emotional value in their purchasing decisions [23][24]. - In lower-tier cities, the negative impact of real estate on consumption is diminishing, leading to a release of consumption potential, with retail growth rates in these cities surpassing those in higher-tier cities [24][25].