Core Viewpoint - The article discusses the significant retreat of foreign consumer brands from the Chinese market, attributing it to the transformative impact of AI on the global consumption landscape, rather than a decline in China's consumer market potential [3][7]. Group 1: Truth Behind Foreign Withdrawal - The withdrawal of foreign brands is not indicative of a peak in China's consumer market but rather a result of AI disrupting the traditional advantages held by Western brands [3]. - Historically, developed countries leveraged brand, technology, and management to dominate the consumption industry, while developing countries relied on cheap labor. AI has reversed this dynamic, allowing Chinese companies to leverage algorithms to outperform foreign brands [4][7]. Group 2: AI Reshaping Global Industries - The essence of foreign brands' retreat is a global shift in industrial advantages driven by AI, with developed countries focusing on "re-industrialization" while China emphasizes "consumption intelligence" [7]. - AI and robotics have made production costs in the U.S. lower than in China by 15%, a trend now seen in the consumer sector, where local brands are using AI to enhance efficiency and reduce costs [9][11]. Group 3: Local Brands' Competitive Edge - Local brands are leveraging AI to achieve a level of operational efficiency that significantly outpaces foreign competitors, with examples like Luckin Coffee's inventory turnover rate being 1.8 times that of Starbucks [14]. - The innovation process for local brands is data-driven, allowing them to adapt quickly to consumer preferences, unlike foreign brands that struggle with lengthy decision-making processes [15][18]. Group 4: Warnings from the Retreat - The collective withdrawal of foreign brands serves as a warning that no advantage is permanent in the AI-driven market; brands must continuously innovate to remain competitive [18][20]. - The competition is shifting from a simple dichotomy of "Chinese factories vs. Western brands" to a more complex battle of who can utilize AI and data more effectively [21].