Core Insights - The transformation of Japanese whisky in the 1990s offers valuable lessons for the current Chinese liquor market, emphasizing the need to align with the emotional needs of the new generation of consumers as consumption shifts from material to spiritual dimensions [1][17]. Group 1: Consumer Behavior Trends - The current popularity of brands like Pop Mart reflects a shift in young consumers who prioritize emotional belonging and confirmation of their spiritual home amid material abundance [2]. - The generational consumption shift indicates that younger consumers are deeply influenced by social media, subcultures, and the IP economy, leading them to spend on passions and community belonging [2][3]. - Consumption upgrade is an irreversible trend, with contrasting behaviors observed, such as the demand for high-end dining alongside budget shopping [3][4]. Group 2: Historical Context and Evolution - Over the past century, a clear consumption upgrade curve has emerged in China, transcending economic cycles and reflecting the underlying logic of consumer development [4]. - Different generations exhibit distinct consumption behaviors shaped by their historical contexts, with older generations focusing on practicality and price sensitivity, while younger generations seek cultural significance and personal identity through brands [5][6]. Group 3: Shifts in Value Perception - The essence of consumption upgrade is shifting from material abundance to a diversified understanding of value across generations, including a transition from ownership to experience, functionality to emotion, and individualism to altruism [8]. - The rise of the Z generation emphasizes the importance of social impact in consumption, favoring brands that align with their values and support sustainability and social responsibility [8]. Group 4: Japanese Whisky Transformation - Japanese whisky successfully transformed its market by redefining consumption scenarios from business gatherings to personal rituals, enhancing emotional connections and lifestyle integration [13][14]. - The elevation of product value from mere alcoholic beverages to cultural experiences showcases the importance of storytelling and brand narrative in creating emotional and cultural premium [15][16]. - The shift from foreign imports to a focus on Japanese craftsmanship and philosophy has positioned Japanese whisky as a symbol of cultural confidence and high-quality lifestyle [16]. Group 5: Implications for Chinese Liquor Industry - The current Chinese liquor market mirrors the Japanese experience of the 1990s, with a growing rational consumption awareness and a shift away from materialism [18][19]. - Key challenges include demographic shifts leading to reduced alcohol consumption, changing preferences towards healthier options, and the decline of traditional consumption scenarios [20][21][26]. - The complexity of China's consumer market, characterized by diverse regional cultures and varying consumer preferences, presents significant opportunities for innovation and tailored product offerings [27][28]. Group 6: Future Directions - As the new generation shifts focus from "having more" to "experiencing better," the liquor industry must adapt to these evolving preferences, emphasizing quality and unique cultural values [30][31]. - Companies that embrace innovation, prioritize quality, and reshape consumer experiences are likely to thrive in the changing landscape of the liquor market [32].