Core Insights - The report from JLL highlights the dynamics of China's retail real estate and consumer market in the first half of 2025, focusing on consumption fundamentals, supply and demand in retail real estate, structural adjustments, regional differences, and innovation trends [5][6]. Group 1: Consumption Fundamentals - In the first half of 2025, per capita disposable income continues to grow, supporting the consumer market [1]. - Consumer demand is becoming more diverse, with a notable emphasis on health, experience, and personalization, leading to increased attention on sectors like fitness and healthcare services [1]. - The integration of online and offline shopping experiences is deepening, with platforms like Douyin significantly influencing consumer decision-making [1]. Group 2: Retail Real Estate Supply and Vacancy Rates - There is a noticeable differentiation in the supply of retail real estate across key cities, with some cities seeing concentrated new supply, particularly in A-class cities [1]. - Overall market vacancy rates are showing regional disparities, with core city premium shopping areas experiencing lower vacancy rates, while non-core areas and some third and fourth-tier cities face pressure to reduce excess supply [1]. - Rental levels in core shopping districts remain relatively stable, while some emerging districts experience slight fluctuations [1]. Group 3: Structural Adjustments in Retail Formats - There are significant adjustments in the structure of retail formats, with varying proportions across categories. For instance, the share of dine-in restaurants in A-class cities dropped from 22.8% in the first half of 2024 to 15.3% in 2025 [2]. - Fast food and snacks maintain stable proportions, while coffee and beverage categories have seen increases, particularly in B-class cities [2]. - The service sector is growing significantly, with fitness venues in A-class cities increasing their share from 2.3% to 8.3% [2]. Group 4: Regional Market Performance - A-class cities (e.g., Beijing, Shanghai) leverage strong consumer power and commercial maturity, leading to a high proportion of emerging and experiential formats [3]. - B-class cities (e.g., Chengdu) show strong commercial vitality with active adjustments in dining and fashion sectors [3]. - C and D-class cities primarily focus on meeting basic consumer needs, with traditional dining and lifestyle formats dominating, while new formats are lagging [3]. Group 5: Innovation Trends - Retail spaces are increasingly focusing on creating engaging environments and collaborating with popular culture IPs to attract foot traffic [3]. - Membership systems are being upgraded, and VIP services are optimized to enhance consumer loyalty [3]. - Digital operations are deepening, with online platforms driving traffic and precision marketing, while some retail spaces explore "retail+" models to expand their business boundaries [3].