Core Insights - The article highlights the significant shift in consumer behavior in lower-tier cities, where consumers are transitioning from passive followers to active decision-makers in their purchasing choices, particularly in high-quality goods [3][9][10] - The surge in consumer traffic at Hema stores during the National Day holiday indicates a growing recognition of the consumption potential in these "opportunity cities," with notable sales of premium products like king crabs and steaks [2][4] Group 1: Consumer Behavior - Consumers in second and lower-tier cities are increasingly aware of global products and quality, paralleling the preferences of first-tier city consumers [3][9] - The demographic driving this change primarily consists of young families aged 25-45, who prioritize health and quality in their food choices while also seeking convenient shopping experiences [9][10] - Social media plays a crucial role in shaping these consumers' awareness and expectations, allowing them to access quality lifestyle concepts from first-tier cities [9][10] Group 2: Market Dynamics - Hema's success in these markets reflects a broader trend of consumption upgrading, attracting not only Hema but also international brands like L'Oréal and Lululemon, which are focusing on lower-tier cities for growth [4][10] - The traditional retail sector's contraction has created opportunities for new retail formats like Hema, which is filling gaps in quality commercial supply in these regions [4][10] Group 3: Hema's Strategy - Hema's operational strategy is built on a robust supply chain and a unique shopping experience that combines online and offline services, catering to the dual demands for convenience and quality [11][15] - The company plans to open nearly 100 new stores within the fiscal year, with a focus on "strategic opportunity cities," indicating a proactive approach to market expansion based on consumer demand and supply gaps [16] - Hema's ability to adapt its offerings based on local consumer preferences through data analytics positions it well to meet the evolving needs of these markets [15][16]