Core Insights - The report highlights that emotional consumption is becoming a dominant trend among young consumers, with 88.2% of them experiencing stress and over 60% believing that consumption can alleviate this stress [1][10][24] - Young consumers are increasingly prioritizing emotional satisfaction over functional needs, with nearly 30% of their spending directed towards interests and hobbies [1][16][24] - The rise of "emotional goods" aligns with Maslow's hierarchy of needs, as higher-level needs such as belonging, esteem, and aesthetics drive this shift in consumption behavior [1][16][24] Emotional Consumption Trends - Five distinct emotional consumer groups have been identified: - "Mad Master" who express rebellion through abstract products [2][38] - "Reward Personality" who indulge themselves with items that have a sense of ritual [2][51] - "Crispy Energy Saver" who use quirky items to cope with fatigue [2][61] - "Mysticism Enthusiast" who seek psychological comfort through spiritual items [2][62] - "Novelty Seeker" who are attracted to bizarre products [2][64] Market Growth Potential - The emotional consumption market in China is projected to experience significant growth, with an expected market size of over 2 trillion yuan by 2025 [26][28] - Related industries such as trendy toys, pets, cultural tourism, and food are witnessing substantial annual growth rates, indicating a robust market environment [24][28] Consumer Behavior Insights - Young consumers are increasingly willing to pay a premium for emotional value, with 90% expressing a readiness to spend more for emotional satisfaction [23][30] - The trend of "quick emotional recharge" is evident, as young consumers favor easily accessible products that provide instant gratification, such as stress relief toys and quirky collectibles [1][31][34] Social Media Influence - Platforms like Douyin (TikTok) play a crucial role in shaping emotional consumption trends, with significant engagement on topics related to stress relief products, indicating a strong demand for quick emotional fixes [1][31][34]

Group 1 - The first Shanghai International Animation Month will be held from July 4 to August 10, featuring three major events: CCG EXPO, Bilibili World, and ChinaJoy, marking a significant collaboration in the animation industry [1] - Bilibili World is a large offline event hosted by Bilibili, a popular platform among young people, and is one of the most influential events in the ACG (Anime, Comic, and Games) culture in China [1] - CCG EXPO is one of the largest comprehensive animation and gaming exhibitions in China, while ChinaJoy is recognized as a top-level event in the digital entertainment industry, covering various sectors including gaming, animation, and e-sports [1] Group 2 - Open-source Securities indicates that the summer gaming operations, new animated films, and various exhibitions will likely boost sales of related IP peripherals and trendy toys, signaling the arrival of the summer entertainment consumption peak [1] - A report from Xiaohongshu highlights that the top three reasons for consumer purchases in the post-pandemic era are functional needs, self-pleasure, and showcasing taste/personal style, with product quality and emotional value being key decision factors [1] - According to a report by Soul App, among the top spending categories for young consumers during the Double Eleven shopping festival, cultural blind boxes, IP-related consumption, and ACG-related products occupy three positions [2] Group 3 - Shunwang Technology is identified as the organizer of ChinaJoy, indicating its active role in the industry [3] - Aofei Entertainment is noted for its deep involvement in the entire IP industry chain, reflecting its comprehensive strategy in the market [4]

Group 1 - The Hong Kong stock consumer sector has shown remarkable growth this year, led by new consumption forces such as trendy toys, IP economy, and beauty products, reflecting a shift in consumer behavior among the younger generation who prioritize emotional value in their purchases [1] - As of June 16, 2023, stocks like Pop Mart, Mixue Ice City, and Lao Pu Gold have seen significant price increases, with Pop Mart rising 205%, Lao Pu Gold increasing 296%, and Mixue Ice City up nearly 90% year-to-date [1] - The "self-pleasure economy" driven by 260 million Chinese Gen Z consumers (born between 1995-2009) is reshaping consumption patterns, with over 40% of young consumers making purchasing decisions based on emotional value [1] Group 2 - The Hang Seng Consumer Index (HSCGSI.HK) and the Hong Kong Stock Connect Consumer Index are the two main indices for investing in the Hong Kong consumer sector, with the latter including the CSI Hong Kong Stock Connect Consumer Theme Index and the Guozheng Hong Kong Stock Connect Consumer Theme Index [2] - As of June 16, 2023, the three major indices have shown year-to-date performance, with the Guozheng Hong Kong Stock Connect Consumer Index up 23.87%, the CSI Hong Kong Stock Connect Consumer Theme Index up 21.32%, and the Hang Seng Consumer Index up 10.62% [3] - The Hang Seng Consumer Index focuses on essential consumer sectors, showing a lower risk of 31.12% compared to the other two indices, which have risks of 37.54% and 32.82% respectively [3] Group 3 - Three ETFs closely track the Hang Seng Consumer Index, with year-to-date returns of 10.54%, 9.39%, and 9.99% respectively, and a total net inflow of 12.27 billion, 7.31 billion, and 0.09 billion [5] - The CSI Hong Kong Stock Connect Consumer Theme Index includes major internet technology companies, with top holdings like Alibaba and Tencent, making it suitable for investors looking for a blend of consumption stability and technology growth [5] - Four ETFs track the CSI Hong Kong Stock Connect Consumer Theme Index, with year-to-date returns ranging from 18.53% to 20.08% and total net inflows between 1.58 billion and 4.37 billion [7] Group 4 - The Guozheng Hong Kong Stock Connect Consumer Theme Index, which includes diverse new consumption sectors such as jewelry, beauty, trendy toys, and dining, has shown a strong performance with a year-to-date increase of 23.87% [7] - The newly established ETFs tracking the Guozheng Hong Kong Stock Connect Consumer Theme Index are aimed at investors looking to capitalize on the consumption trends driven by Gen Z [9] - For conservative investors, the Hang Seng Consumer Index and its ETFs are recommended for their defensive characteristics, while those seeking a balanced exposure to technology and consumption may consider the CSI Hong Kong Stock Connect Consumer Index ETFs [10]

Group 1 - The toy consumption market is experiencing a surge in popularity, with a diverse range of products such as smart toys, IP-related items, and plush toys emerging, reflecting a new trend that is creative and personalized [1] - Consumers are increasingly prioritizing educational and entertaining functions, safety and quality, as well as individual and emotional needs when purchasing toys [1] - The market share of smart and educational toys has significantly increased, as parents favor products that enhance cognitive and motor skills [1] Group 2 - The children's toy market in China is undergoing a deep transformation, with technology integration, scenario extension, and sustainable development becoming core variables [2] - Companies need to build capabilities in "IP + technology + channels" to address new competition and challenges [2] - Utilizing social media and short video platforms for content creation and enhancing consumer interaction is essential for increasing product visibility and appeal [2]