Core Insights - The article emphasizes the importance of consumption in improving people's livelihoods and driving high-quality economic development in China during the 14th Five-Year Plan period [3][4]. Group 1: Market Expansion and Economic Contribution - China's retail sales of consumer goods are projected to grow from 39.1 trillion yuan in 2020 to 48.3 trillion yuan in 2024, with an average annual growth rate of 5.5%, and is expected to exceed 50 trillion yuan this year [4][5]. - The contribution of consumption to economic growth is around 60% annually, highlighting its role as a main engine for economic development [4][5]. - The gap between China's retail sales and that of the United States is narrowing, with China's retail sales amounting to approximately 80% of the U.S. figure in absolute terms, but exceeding it by 1.6 times when adjusted for purchasing power [5][6]. Group 2: Policy Initiatives and Local Efforts - The central government has prioritized boosting consumption as a key economic task, implementing various policies to enhance service consumption and develop new consumption scenarios [5][10]. - Local governments are also actively promoting consumption through initiatives like "Consumption Season" in Beijing and "Five-Five Shopping Festival" in Shanghai [5][10]. Group 3: Quality and New Consumption Trends - The shift towards quality consumption is evident, with service consumption's share of household spending increasing from 42.6% in 2020 to 46.1% in 2024, growing at an average annual rate of 9.6% [8][9]. - The "old-for-new" policy has significantly boosted sales in sectors like home appliances, with 2.9 trillion yuan in sales driven by this initiative in the first half of 2025 [7][9]. - Digital consumption is projected to reach 23.8 trillion yuan in 2024, accounting for 44.2% of total household consumption, marking it as a new growth engine [9]. Group 4: International Consumption and Tourism - China's consumption market is not only a domestic engine but also an open window for international engagement, with significant imports of consumer goods totaling 7.4 trillion yuan from 2021 to 2024 [10][11]. - The introduction of measures like "240-hour visa-free" and "immediate tax refund" has facilitated smoother shopping experiences for foreign tourists, leading to a 77.8% increase in total spending by inbound tourists in 2024 [11].

Core Viewpoint - The current consumer market is experiencing an unprecedented price storm driven by low-price competition, which is ultimately undermining the future of the market [1][3]. Group 1: Impact on Companies - Low-price competition has evolved into a life-and-death struggle for survival, forcing companies to cut costs and lower standards, often sacrificing product quality [3]. - A notable home appliance company has reduced R&D investment to maintain low prices online, resulting in slower product iteration and technological lag [3]. - Continuous compression of profit margins makes it difficult for companies to invest in service quality, negatively impacting consumer experience and brand value [3]. Group 2: Impact on Consumers - The allure of low prices often conceals hidden traps, leading to frequent issues with cheap electronic products and low-quality furniture, which erodes consumer trust [3][5]. - Consumers are increasingly viewing price as the sole criterion for purchasing, neglecting product quality, performance, and service, which distorts their value perception [5]. - This shift in consumer mindset contributes to a market where low-quality products thrive, pushing out high-quality brands [5]. Group 3: Successful Strategies - Some companies, like Pang Donglai and Green Home, are successfully maintaining their market positions by focusing on quality and service, demonstrating that quality is the core competitive advantage [5][7]. - The path to breaking the cycle of low-price competition lies in rebuilding a value-oriented market order, with companies investing more in R&D and service upgrades [7]. Group 4: Call to Action - Both companies and consumers need to shift their perspectives; companies should prioritize quality over price, while consumers should recognize the relationship between price and value [7]. - A collective effort is required to escape the low-price competition vortex and restore the foundation of quality in the consumer market, enabling sustainable development for companies and a better quality of life for consumers [7].