Core Insights - The article discusses the significant transformation faced by Chinese foreign trade enterprises as they shift focus from export to domestic consumption amidst changing global trade dynamics and rising domestic demand [1][6] Group 1: Market Dynamics - China's total export value decreased by 3.8% year-on-year in the first five months of 2025, while retail sales of consumer goods grew by 6.7% in the same period [1] - Many foreign trade factories are abandoning their "Made for Export" labels to target the domestic market of 1.4 billion consumers [1] Group 2: Product Logic and Brand Development - Foreign trade enterprises traditionally operated with a "B-end thinking," focusing on order-based production, but the domestic market requires a "C-end battlefield" approach where consumer engagement and storytelling are crucial [3] - A clothing factory in Dongguan found that size standards for exports to the U.S. needed adjustments for the domestic market, highlighting a disconnect in product understanding [3] - Long-term reliance on OEM has led to a "brand deafness" in foreign trade companies, making it difficult for them to market products effectively in the domestic market [4] Group 3: Channel Strategy and Competition - Foreign trade companies often struggle with channel strategies, facing high entry fees in traditional supermarkets and algorithm-driven challenges in e-commerce [4] - Domestic brands have optimized "cost-performance" ratios, exemplified by Xiaomi's rapid price reductions in TWS earphones, contrasting with foreign trade companies' pricing strategies [4] Group 4: Innovation and Adaptation - Companies are encouraged to innovate product offerings, such as developing scene-specific products and integrating cultural elements into designs to appeal to modern consumers [5] - The establishment of "digital twin factories" and the adoption of advanced technologies like AI and robotics are recommended to enhance supply chain flexibility [5][7] Group 5: Talent and Organizational Structure - Companies are advised to create roles like "Chief Transformation Officer" to oversee domestic sales strategies and recruit younger talent to foster innovation [6] - Implementing a culture of internal entrepreneurship and utilizing management tools like OKR can help bridge the gap between foreign trade and domestic sales teams [7]

Group 1 - The luxury brand Louis Vuitton (LV) is set to open its first beauty store in Nanjing, China, rather than in first-tier cities like Beijing or Shanghai, indicating a strategic choice based on the strong consumer spending power in Nanjing [1] - Nanjing Deji Plaza is projected to achieve a record sales revenue of 24.5 billion yuan in 2024, while Beijing SKP, the long-time leader in high-end retail, is expected to see a 17% decline in sales to 22 billion yuan [1] - LV's new beauty store will operate more like a boutique rather than a traditional department store counter, ensuring brand consistency and customer experience through direct brand management [1] Group 2 - LV recently announced the launch of its beauty line, LA BEAUTÉ LOUIS VUITTON, with a collection set to debut in Fall 2025, including 55 lipsticks, 10 lip balms, and 8 eyeshadow palettes [2] - The beauty segment is one of the few bright spots for LVMH, with the perfume and cosmetics division and Sephora's retail segment being the only two areas projected to show positive growth in 2024 [2] - Although LVMH does not disclose specific revenue figures for its beauty brands, third-party data suggests that Dior's beauty business generated approximately 2.1 billion euros in 2021, accounting for about 35% of its total sales [2] Group 3 - LVMH's Q1 2025 financial report showed a revenue of 20.31 billion euros, a slight decline of 2% year-on-year, falling short of analyst expectations for a 2% growth [3] - The decision to expand into the beauty sector is seen as a strategic response to the changing consumption behavior of high-net-worth individuals and a positive outlook for the high-end beauty market [3]

Core Viewpoint - Louis Vuitton is set to launch its first full line of beauty products under the brand La Beauté Louis Vuitton, with a recruitment drive for its beauty store in Nanjing, indicating a significant expansion into the beauty market [4][5][7] Group 1: Company Expansion - Louis Vuitton has announced plans to open a beauty store in Nanjing's Deji Plaza, with recruitment for positions such as store manager and beauty stylist [4][5] - The beauty line will be creatively guided by renowned makeup artist Dame Pat McGrath and will include a range of products such as 55 lipsticks, 10 lip balms, and 8 eyeshadow palettes [4][7] - The recruitment process is stringent, requiring at least 5 years of experience in cosmetics or luxury retail for the store manager position [4] Group 2: Market Context - The beauty market is becoming a crucial growth area for luxury brands as traditional luxury goods face a slowdown [7][8] - Other luxury brands like Hermès and Valentino have also entered the beauty sector, indicating a trend among high-end brands to diversify their offerings [7][8] - The Nanjing Deji Plaza has shown strong sales performance, achieving a revenue of 24.5 billion yuan in 2024, which positions it as a rising star in commercial real estate [5] Group 3: Challenges Ahead - Despite its strong brand recognition, Louis Vuitton faces challenges in penetrating the high-end beauty market, which requires building consumer trust and adapting to diverse consumer preferences [9][10] - The brand must navigate the complexities of product development, including color diversity and skin compatibility, to meet consumer expectations [10] - Competing in a crowded market with established international and domestic brands will require strategic marketing and distribution efforts [10]