Investment Rating - The industry investment rating is maintained at "Overweight" [2][22] Core Insights - The retail sector saw a 4.06% increase last week, outperforming the CSI 300 index by 5.14 percentage points [2][7] - The total sales during the 2025 "Double Eleven" shopping festival reached 16,950 billion, a year-on-year increase of 14.2% [4][20] - The current PE ratio for the retail sector is 51.03X, with a PB ratio of 2.06X [3][15][18] Industry Performance - The retail sector's performance over the past month shows a relative return of 4.6%, a 3-month return of -2.7%, and a 12-month return of 2.3% [2] - The retail sector's absolute returns were 4.4% over the past month, 8.1% over the past 3 months, and 18.9% over the past year [2] Industry Dynamics - The "Double Eleven" shopping festival highlighted a shift in consumer behavior towards rational spending, with a focus on quality and brand value [4][20] - The home appliance sector is expected to maintain strong growth due to ongoing subsidy policies, while competition is evolving towards AI empowerment and green solutions [4][20] - The beauty industry is experiencing significant structural upgrades, with a focus on high-end products and effective performance [4][20] Investment Recommendations - The report suggests focusing on sectors that emphasize experience, content, and community engagement, particularly in smart home appliances and beauty care [4][21][22] - Attention is recommended for high-end domestic beauty brands and the instant retail supply chain during the "Double Eleven" period [5][22]

Core Insights - The sales data for Xiaomi SU7 in April 2025 reveals a significant shift in consumer purchasing power across Chinese cities, with new first-tier cities showing remarkable growth while traditional first-tier cities like Beijing experience a decline [1][3]. Group 1: Sales Performance - New first-tier cities dominate the sales rankings, occupying 12 out of the top 20 spots and contributing 61% of total sales, with Hangzhou leading at 1,866 units sold [2][3]. - Traditional first-tier cities like Shanghai, Shenzhen, and Guangzhou remain competitive, but Beijing's sales drop to 681 units, placing it 12th, alongside second-tier cities [3][4]. Group 2: Market Dynamics - The rise of new first-tier cities is attributed to economic growth driven by industry and population advantages, such as the internet economy in Hangzhou and manufacturing in Wuhan, attracting high-income consumers [3]. - Policy support and infrastructure improvements in new first-tier cities, like relaxed electric vehicle license policies in Hangzhou, have further stimulated sales [3][4]. Group 3: Competitive Landscape - The disparity in performance among first-tier cities is linked to strict policies in Beijing, competition from established brands in Shanghai and Shenzhen, and Xiaomi's faster expansion in new first-tier cities [4][6]. - Second-tier cities like Nanchang, Wenzhou, and Jinan are emerging as strong competitors, driven by rising disposable incomes and Xiaomi SU7's cost advantages [6][8]. Group 4: Strategic Recommendations - To maintain its market position, Xiaomi should focus on overcoming policy barriers in restricted cities like Beijing by exploring partnerships with rental and ride-sharing companies [8]. - Enhancing service networks in second-tier cities, including expanding charging infrastructure and after-sales support, is crucial to address consumer concerns [8][9]. Group 5: Conclusion - The sales data for Xiaomi SU7 reflects broader economic trends in China, indicating a shift from a centralized consumption model to a more diversified market landscape, emphasizing the importance of understanding urban dynamics for future success in the electric vehicle sector [9].

Group 1: Apple iPhone Pricing Strategy - Apple has issued a rare price adjustment notice to channel partners, with the iPhone 16 Pro Max series seeing a price drop of $160, approximately 1313 RMB, and the iPhone 16 Pro 128GB version dropping by $176, around 1445 RMB [3] - The price cuts have led to a surge in consumer interest, with social media filled with strategies on how to take advantage of the discounts during the upcoming 618 shopping festival [3][4] Group 2: Luxury Goods Discount Trends - Major luxury brands like Chanel and Burberry are offering significant discounts during the 618 shopping festival, with reductions typically around 50%, and some items discounted as low as 20% [4] - The report from Bain indicates a shift in global luxury consumption towards value for money, with sales through discount channels showing noticeable growth [4] Group 3: E-commerce Promotions - Vipshop is launching multiple promotional activities from May 12 to June 21, with key promotional dates on May 16, May 31, and June 15, offering additional discounts on top of brand discounts [4][5] - During a limited-time event on May 14, brands like Coach and Kate Spade offered unprecedented low prices, with Coach items going as low as 1.6 times the original price and Kate Spade at 1.2 times [5] Group 4: Market Transformation Insights - The current consumer market is undergoing a transformation, with a shift from high-priced mobile phones to a focus on price as a key factor due to slower technological innovation [5] - Luxury consumption is evolving from "conspicuous consumption" to "practical consumption," particularly among younger consumers who prioritize value and experience [5] - The events of the 2025 618 shopping festival signal a broader market transformation, indicating that brands and platforms need to rethink their strategies to focus on value and consumer experience [5]