Core Insights - The WPP Media report reveals a shift in luxury consumption in China, where consumers are increasingly seeking immersive experiences, emotional resonance, and identity expression rather than just material goods [4][79] - The report identifies six key paradigms of luxury experience that brands can leverage to connect with consumers during market transformation [4][79] Group 1: Luxury Experience Paradigms - The six paradigms include "Unadorned Essence," "Tranquil Transcendence," "Cultural Patronage," "Positive Advocacy," "Distinctive Curation," and "Tech Epicurean," each representing different consumer desires in the luxury market [2][4][79] - "Unadorned Essence" emphasizes a return to simplicity and authenticity, where consumers seek genuine sensory experiences that resonate deeply with their souls [6][9] - "Tranquil Transcendence" reflects a desire for emotional health and inner strength, with consumers looking for experiences that provide long-lasting psychological nourishment [17][23] Group 2: Cultural and Social Aspects - "Cultural Patronage" highlights the importance of cultural capital, where affluent consumers use their cultural experiences to distinguish their identities and engage in meaningful cultural narratives [28][42] - "Positive Advocacy" indicates a shift towards social impact, where luxury consumers seek to create positive change and derive satisfaction from their contributions to societal issues [43][54] - The report suggests that luxury brands should facilitate consumer participation in social causes, enhancing their sense of fulfillment and identity [53][56] Group 3: Unique Taste and Technological Integration - "Distinctive Curation" focuses on the pursuit of unique and personalized experiences, where consumers value creativity and social interaction in their luxury engagements [57][65] - "Tech Epicurean" captures the trend of early adoption of technology among luxury consumers, who view access to cutting-edge innovations as a new status symbol [66][67] - The integration of technology with craftsmanship is seen as essential for luxury brands to meet the evolving expectations of consumers in a fast-paced world [77][78]

Group 1 - The government is actively creating diverse consumption scenarios to stimulate spending, while short-term rental demand in the commercial market is under pressure in some core cities [5][7] - High-end commercial performance continues to be tested, with many companies reporting a year-on-year decline in retail property income for the first half of 2025 [11][18] - Shopping centers are adapting to popular consumption demands, with a high proportion of new stores being flagship locations and diverse types, including international and niche brands [19][21] Group 2 - The retail market shows uneven performance, with dining brands benefiting from delivery and store expansion, while high-end retail brands face significant challenges [23][24] - E-commerce platforms like JD and Taobao are intensifying competition in instant retail, enhancing their logistics capabilities to create a comprehensive retail ecosystem [31][32] - REITs performance continues to diverge, with Tianhong planning to apply for a REIT based on its Suzhou project, reflecting ongoing trends in the commercial real estate sector [34][40] Group 3 - The commercial market in core cities is experiencing differentiated supply rhythms, with cities like Beijing and Shenzhen seeing significant new supply, while others like Hangzhou show no new supply [8][9] - Vacancy rates vary significantly between cities, with Shenzhen having the lowest at 4.1%, while Shanghai and Chengdu are higher at 8.6% and 9% respectively [9] - In terms of rental levels, Shanghai has the highest average rent at 31.9 yuan/day/sqm, while Shenzhen has the lowest at 18.1 yuan/day/sqm [9] Group 4 - In the context of declining overall consumption growth, Ingka is planning to sell ten shopping centers in China, with the first three projects involving 16 billion yuan [10] - The privatization of Joy City is aimed at addressing market challenges and improving governance, with a buyback plan of 2.932 billion Hong Kong dollars [18] - The performance of high-end retail brands is mixed, with Hermes showing growth while Kering and LVMH face significant declines [27]