Core Insights - Consumption has become the core engine of economic growth in China, contributing over 50% in the first half of the year [1] - The retail sales of consumer goods achieved a year-on-year growth of 5.0% in the first half of 2025, driven by various factors including effective government policies and an increase in disposable income [1] - The capital market is providing further development momentum for consumption, with a shift in capital flow towards companies with strong cash flow, brand strength, high chain operations, and digitalization [1] - Future optimization and upgrading of consumption structure will be achieved through the collaboration of policies, markets, and capital [1]

Core Insights - The report indicates that the Chinese consumer retail market is showing strong resilience, becoming the "main engine" of economic growth, with a focus on enhancing consumer capacity and optimizing the consumption environment [1][2] Group 1: Market Performance - In the first half of 2025, the total retail sales of consumer goods achieved a 5% year-on-year growth, driven by various factors including effective government consumption policies and the "trade-in" program [1] - The per capita disposable income of residents increased by 5.3% nominally compared to the same period last year, while the urban survey unemployment rate remained stable, slightly decreasing from the previous year [1] Group 2: Consumer Trends - The consumption market is evolving with a focus on "self-satisfaction consumption," as outdoor activities gain popularity, injecting vitality into the outdoor goods market [2] - The health and cosmetics market is showing strong resilience, with the younger generation, particularly Generation Z, becoming the main force in beauty consumption, emphasizing sensory design and emotional wellness [2] Group 3: Industry Dynamics - Companies need to innovate and transform to meet changing consumer demands, establishing differentiated competitive advantages in a fragmented market [3] - E-commerce platforms are transitioning towards a "quality + brand" dual-driven model, moving away from the previous low-price competition strategy [3] - Capital markets are reshaping the consumer landscape, favoring companies with robust cash flow, strong branding, and high levels of digitalization, particularly in the luxury sector where hard luxury items are gaining traction [3]