Core Viewpoint - The recent controversy surrounding Liu Meihan's "idle market" selling counterfeit goods has sparked significant public attention and discussion, leading to her public apology and commitment to resolve the issues with buyers [1][5][9]. Group 1: Event Overview - Liu Meihan's "Idle Circulation Plan" took place from April 25 to April 27, featuring over 45 artists and influencers, with more than 2,000 items for sale, including second-hand luxury goods, and tickets priced at 30 yuan each [6]. - Following the event, buyers reported receiving counterfeit items, such as LV bags and Miu Miu knitwear, which raised concerns about the authenticity and quality of the products sold [9][11]. Group 2: Market Context - The second-hand luxury market in China is rapidly growing, with a significant increase in demand for product authenticity verification. The market is expected to expand as consumer awareness and demand for genuine products rise [14][16]. - By 2030, it is projected that Chinese consumers will contribute approximately 50% to global luxury goods consumption, indicating a strong influence and purchasing power in the luxury market [16]. - The second-hand luxury market in China currently accounts for less than 5% of total luxury consumption, compared to around 30% in countries like Japan and the United States, suggesting substantial growth potential [16].

Investment Rating - The report does not explicitly provide an investment rating for the luxury, fashion, and beauty industry Core Insights - Geopolitical tensions and trade wars are significantly challenging brands, necessitating a strategic review of supply chains, manufacturing processes, and distribution channels [2] - The growth of the gray market for luxury goods, particularly in Asia, is prompting brands to strengthen control over distribution and resale, as well as reassess global pricing strategies [2] - The second-hand luxury market is rapidly expanding, driven by sustainability and cost-conscious consumers, presenting new challenges for brands, including brand value dilution and increased counterfeit risks [2] - Sustainability remains a major focus for consumers and brands, but recent policy reversals in the U.S. and new European legislation add complexity for companies navigating this area [3] - Brands are increasingly utilizing artificial intelligence across all areas of product and service lifecycles, requiring investments in new policies, talent, and technology to ensure safety and compliance [4] - The rise of customized products is a significant trend, allowing brands to create unique and meaningful experiences for customers, enhancing brand loyalty and engagement [9] Summary by Sections Trends, Opportunities, and Challenges - Geopolitical challenges and trade reforms are impacting luxury consumption and pricing strategies [7] - The shift towards luxury lifestyles is gaining momentum as affluent consumers seek exclusive and personalized experiences [7] - Social media-driven consumerism is transforming the retail landscape, requiring brands to remain vigilant and address emerging challenges [8] Biotechnology Opportunities - Biotechnology is merging sustainability and technology trends, enabling the sustainable mass production of beauty ingredients, becoming a hotspot for mergers and acquisitions [2] Regulatory Environment - Increasing scrutiny from regulatory bodies on restrictive labor market agreements poses concerns for brands relying on such terms to protect their competitive advantage [6]