Investment Rating - The industry maintains a "Strong Buy" rating, indicating a positive outlook for investment opportunities in the service consumption sector [4]. Core Insights - In 2024, domestic service consumption's share in resident consumption has recovered to 46%, nearing the structural critical point of 50%, and is expected to enter a rapid growth phase, becoming a key engine for driving domestic demand and boosting consumption [2][28]. - Compared to goods consumption, service consumption offers higher growth elasticity and user stickiness due to its personalized interaction and unique experiences, presenting vast investment opportunities [2][57]. - Investment opportunities in the service consumption sector can be strategically focused on two key dimensions: one is along the high replicability line, emphasizing scale expansion and supply chain efficiency; the other is along the high experience shaping capability line, focusing on services that provide unique experiences, emotional resonance, or cultural identity [2][57]. Summary by Sections Service Consumption Overview - Service consumption is defined as the total expenditure on various non-physical services paid by residents to meet their life needs, covering twelve major categories including health services, entertainment, and education [10]. - The essence of modern service consumption is shifting from "functional satisfaction" to "experience co-creation" and "emotional healing," emphasizing the creation of multi-dimensional experiences that form lasting memories [10][14]. Development of Service Consumption - The share of service consumption is expected to accelerate, with a structural critical point approaching, as seen in international examples where service consumption's share increases significantly after surpassing 50% [24][25]. - The growth potential of service consumption is high, with per capita service consumption growth consistently outpacing overall consumption growth, indicating a slower marginal utility decline compared to goods consumption [29]. Classification of Service Consumption - A classification framework for service consumption is proposed based on two dimensions: experience shaping capability and replicability. This framework helps identify investment value across different business models [44]. - Three main tracks of service consumption are identified: 1. Scale efficiency type (low experience shaping capability + high replicability) represented by chain restaurants and tea shops [48]. 2. Artisan economy type (high experience shaping capability + low replicability) exemplified by concert events [51]. 3. Brand premium type (high experience shaping capability + high replicability) typified by sports events [54]. Investment Recommendations - The report suggests focusing on key tracks such as chain restaurants/tea shops, sports companies, performing arts operators, and platform enterprises that can effectively connect supply and demand [57].