Core Viewpoint - The article discusses the resurgence of traditional markets, or "daji," in urban areas, highlighting how young entrepreneurs are revitalizing these spaces through innovative business models and social media engagement [5][6]. Group 1: New Functions of Traditional Markets - Traditional markets are evolving to offer a diverse range of products, including fresh produce and trendy food items, at competitive prices, often lower than online platforms [9][10]. - The market experience includes interactive elements like free samples, which enhance customer engagement and satisfaction [9][10]. - The speed at which trendy food items are introduced in traditional markets surpasses that of many e-commerce platforms, allowing for rapid adaptation to consumer preferences [11][12]. Group 2: Young Entrepreneurs Transforming Markets - An increasing number of young individuals are entering the market scene, using it as a stepping stone to entrepreneurship, often starting with minimal investment [14][15]. - These new vendors are leveraging social media to build their brands and customer bases, creating private communities for direct engagement with consumers [16][17]. - The adaptability of these young entrepreneurs allows them to learn from other markets and adjust their offerings based on consumer feedback [16][18]. Group 3: Consumer Behavior and Market Dynamics - The shift back to traditional markets is influenced by a cycle of consumption where consumers, after experiencing e-commerce, seek the tangible and immediate benefits of in-person shopping [19][20]. - Social media plays a crucial role in shaping consumer perceptions and expectations, leading to increased scrutiny of vendors and their practices [19][20]. - The success of vendors often hinges on their ability to provide immediate gratification and competitive pricing, as consumers weigh the convenience of online shopping against the experience of traditional markets [20][21].

Core Insights - The luxury goods market in China, which experienced rapid growth a decade ago, is now facing a downturn, with significant declines in revenue and profit reported by major brands like LVMH [3][4][5] - In contrast, the market for near-expiry food products is witnessing explosive growth, with a projected market size exceeding 40 billion yuan and an annual growth rate of nearly 6% [4][10] Group 1: Luxury Goods Market Decline - In 2015, China's luxury goods market reached a peak size of 113 billion yuan, contributing significantly to global consumption [1] - By 2025, LVMH reported a 4% decline in revenue for Q2, with a 15% drop in operating profit and a 22% drop in net profit [3] - Bain & Company revised its forecast for the global luxury goods market, predicting a potential decline of 2% to 5% in sales for 2025 [3] Group 2: Rise of Near-Expiry Food Products - The near-expiry food market in China is projected to surpass 40 billion yuan this year, driven by a shift in consumer attitudes towards more practical and cost-effective purchasing [4][10] - The rapid expansion of near-expiry food chains, such as Haotemai, reflects a growing consumer preference for value-oriented shopping [4] - The trend indicates a fundamental change in consumer behavior from ostentatious luxury spending to rational and pragmatic consumption [4][10] Group 3: Changing Consumer Psychology - The shift in consumer behavior is attributed to a deep transformation in the consumption psychology of the middle class, moving from conspicuous consumption to practical spending [5][10] - The middle class's debt levels have risen above 50%, with a focus on cost-effectiveness and practical consumption dominating their purchasing decisions [5] - The economic environment has shifted from rapid growth to a more cautious approach, influencing consumer habits and preferences [7] Group 4: Generational Shift in Consumption - The primary consumers of luxury goods have shifted from the older generations (70s and 80s) to Generation Z, who prioritize cultural identity and self-expression over brand logos [8] - By 2025, online penetration of luxury goods is expected to reach 46%, with Generation Z accounting for 72% of transactions [8] - The second-hand luxury market is projected to grow significantly, indicating a shift towards circular consumption and away from new luxury purchases [8] Group 5: Future Trends in Consumption - The rise of near-expiry food signifies a new trend in middle-class consumption, emphasizing quality-price ratio and sustainable practices [10][11] - Future consumption patterns are expected to focus on experiential spending, with increased interest in high-end travel and cultural entertainment [10] - Companies are encouraged to adapt to the "new pragmatism" in consumer behavior, focusing on quality and value in their offerings [11]