Core Insights - The report indicates a significant shift in consumer preferences towards domestic brands in various sectors, including beauty, electronics, food, and apparel, with domestic brands gaining a dominant position by 2025 [1][2] Group 1: Consumer Preferences - By 2025, the proportion of consumers preferring domestic beauty and skincare brands has surpassed that of international brands, with domestic brands also taking a leading role in the 3C electronics and home appliance sectors [1] - In first-tier cities, international brands remain the mainstream choice among high-income groups, particularly in the beauty and skincare sector, although their competitive advantage is narrowing [2][3] - The three main drivers for consumers purchasing domestic products are high cost-performance ratio, unique product features, and emotional value tied to cultural confidence [3] Group 2: Changing Consumer Values - Consumers are increasingly prioritizing health and wealth, with 87% valuing health and 47% valuing wealth by 2025, reflecting a shift in life priorities [4] - Younger consumers (those born in the 1990s to 2000s) show the most significant increase in valuing health and wealth, while older generations are also shifting their focus towards wealth accumulation and personal interests [4] Group 3: Impact of Technology - Nearly 80% of Chinese consumers are using AI tools frequently, indicating a growing reliance on technology in consumer behavior [5] - Brands are encouraged to adapt to this technological shift by understanding what consumers find valuable and ensuring their offerings align with these insights [6] Group 4: Brand Strategy Recommendations - Brands must focus on product strength to retain consumers in a highly rational consumption environment, emphasizing functional innovation and emotional value [7] - Companies should move away from one-way communication and instead provide high-quality engagement at various consumer touchpoints, leveraging AI and big data to track and anticipate consumer needs [7][8] - To fully harness the value of AI, brands should establish responsible AI governance frameworks and collaborate with regulatory bodies and industry partners to build trust [8]