Core Viewpoint - The article discusses the concept of "new consumption" in the context of the Chinese market, highlighting the blending of various consumer goods categories into a single investment theme, despite underlying economic challenges and the need for a coherent narrative to support this concept [2][4]. Group 1: New Consumption Concept - The term "new consumption" is used to describe a collection of consumer stocks that have performed well, but the underlying data suggests that overall consumption is still struggling [3][4]. - The article critiques the idea of categorizing all rising consumer stocks under "new consumption," arguing that it dilutes the true essence of what constitutes new consumer behavior [3][4]. - The focus on individual stock performance (alpha opportunities) is emphasized over sector-based investment strategies (beta opportunities), particularly in the consumer sector [5][4]. Group 2: Consumer Behavior Insights - The article argues that the notion of "consumption downgrade" is misleading, as consumer behavior is influenced by psychological factors and social interactions rather than purely economic conditions [8][12]. - It identifies three psychological characteristics of consumer behavior: the expression of personal desires, social context, and lifestyle habits, which all contribute to consumption patterns [11][12]. - The concept of "value replacement" is introduced, where consumers seek lower-priced alternatives without sacrificing quality, exemplified by the rise of discount snack stores [12][13]. Group 3: Investment Strategy in Consumer Stocks - The article outlines four key requirements for researching consumer stocks, emphasizing the importance of understanding stock price movements and valuation [6]. - It suggests that stable growth companies in the consumer sector can achieve significant long-term returns, contrasting with the volatility often seen in tech stocks [5][6]. - The focus should be on identifying leading brands and major products that can drive individual stock performance, rather than relying solely on broader market trends [10][5]. Group 4: Trends in Consumer Spending - The article discusses the trend of interest-based consumption, where consumers are increasingly drawn to products that fulfill personal interests or emotional needs [20][19]. - It highlights the importance of "breaking the circle" for niche products to reach a broader audience, using the example of collectible items like blind boxes [21][20]. - The concept of marginal propensity to consume is explored, indicating that spending growth is often driven by specific demographic groups with higher willingness to spend [25][26]. Group 5: Market Dynamics and Channel Evolution - The article notes that the fast-moving consumer goods (FMCG) sector is undergoing significant changes due to the rise of new retail models, which are reshaping competition and brand dynamics [40]. - It emphasizes that successful brands must adapt to evolving consumer preferences and distribution channels to maintain relevance in a rapidly changing market [40][39]. - The discussion includes the impact of social media and digital marketing on consumer behavior and brand engagement, particularly for emerging products [30][31].

Core Viewpoint - The article discusses the concept of "new consumption," which combines various consumer stocks that have shown price increases, rather than categorizing them by type. This approach reflects a deeper issue in the A-share market's investment mentality, focusing on themes and concepts rather than fundamental analysis [2][5]. Group 1: New Consumption Concept - The "new consumption" concept is a collection of consumer stocks that have performed well, but it lacks a coherent narrative, as many included categories do not fit the definition of new consumption [4][5]. - The article argues that the focus on "new consumption" is a result of a broader trend in the A-share market, where investment decisions are often driven by themes rather than the underlying fundamentals of individual companies [5][6]. Group 2: Consumption Trends - The article highlights that despite a general decline in consumer spending, certain sectors like home appliances and electric vehicles have shown growth, largely driven by policy support [3][12]. - It emphasizes that the notion of "consumption downgrade" is misleading; instead, it reflects a shift in consumer behavior influenced by psychological factors and economic conditions [15][16]. Group 3: Investment Strategies - The article outlines four key requirements for researching consumer stocks: stable growth, focus on leading companies, individual stock alpha opportunities, and long-term odds [9]. - It suggests that successful consumer stocks often exhibit a long-term growth trend, with prices potentially doubling every three years [8]. Group 4: Price Sensitivity and Consumer Behavior - The article discusses the importance of price sensitivity among consumers, noting that many are now more focused on value for money rather than simply upgrading their purchases [22][28]. - It introduces the concept of "value replacement," where consumers opt for lower-priced alternatives without sacrificing quality, which has become a cultural phenomenon rather than just an economic response [20][21]. Group 5: Emerging Trends in Consumption - The article identifies "interest consumption" or "self-indulgent consumption" as a growing trend, particularly among younger consumers who seek unique and personalized products [30][31]. - It also notes that products with high marginal consumption propensity are often linked to social media trends, which can lead to rapid popularity but may not sustain long-term loyalty [41][42]. Group 6: Market Dynamics and Channel Evolution - The article highlights the transformation of retail channels, emphasizing that new retail models are replacing traditional supermarkets, significantly impacting the competitive landscape for consumer brands [57][58]. - It points out that the success of consumer products is increasingly tied to effective channel management and understanding consumer behavior, rather than merely relying on brand recognition [56].