SSE Consumption Sector Shows Strong Momentum amid Policy Support and Innovation Boost

Source: China Securities Journal, www.cnstock.com

Author: He Xinyi

The Central Economic Work Conference puts "vigorously boosting consumption" as the top priority of economic work. The policy opportunity has been seized by consumer enterprises listed on Shanghai Stock Exchange (SSE) to power their growth through new quality productive forces and stand out in the wave of consumption revival in early 2025, through innovative paths such as collaborating with China-chic home-grown brands, fostering all-scenario consumption vibe and integrating smart retail models.

The Rise of All-Scenario Consumption Ecology

As spring approaches, Wangfujing Group Co., Ltd. has ushered in a new season of consumer activity. Starting in March, a series of themed marketing events will be organized around the "Green Life Plan". Events such as marathons, camping festivals will be launched at various stores in conjunction with the sports app to stimulate interest in sports and outdoor consumption. During occasions like Women's Day and the Qingming Festival, stores will focus on key categories like perfumes, cosmetics, and clothing. For instance, the Beijing Department Store will launch the "You Are Infinite Possibilities" campaign, while Chengdu Wangfujing will host the "Spring Cosmetics Festival". The store in Nanchang will host an indoor camping festival, and Wanning Duty Free Port will collaborate with marathon events. Additionally, stores plan to attract customers through activities like the "China-Chic Garden Party", with Changsha Wangfujing featuring a fashion week themed around intangible cultural heritage bamboo weaving. In 2024, Wangfujing Group Co., Ltd.'s stores participated in over 40 government-led consumption promotion activities, receiving more than RMB 20 million in funding and generating nearly RMB 250 million in sales. The group is also continuously creating shopping scenarios for new lifestyles, including plans for a new energy vehicle experience center.

China-chic Brands to Attract More Customers

During the Spring Festival, Shanghai Yuyuan Tourist Mart (Group) Co., Ltd. hosted cultural events and introduced collaborative consumer activities. Inheriting the "luck culture", Laomiao Gold has collaborated with the movie "Creation of The Gods II" to create a co-branded series. This collection combines film elements to create 10 unique pieces of gold jewelry, each offering a multi-dimensional blessing. Laomiao Gold employs a multi-level marketing strategy both online and offline. It promotes its products via social media platforms and partners with cinemas in major cities for offline engagement. During the Spring Festival, it collaborates with numerous cinema chains across various cities to boost the visibility and popularity of its new products.

Smart Retail Redefines Business Logic

As a leading enterprise within the Ministry of Commerce's pilot on modern commercial circulation system, Yonghui Superstores Co., Ltd. stands out as a model of successful transformation. Its stores have been revamped according to the "one store, one policy" principle. For instance, after the store at the Wanda Plaza nearby Daming Palace in Xi'an implemented intelligent shelving and other enhancements, its daily sales volume skyrocketed by 13.9 times. Yonghui Superstores Co., Ltd. has enhanced the environment and added service facilities to offer "one-stop" services, including shopping, dining, socializing, and entertainment. To enhance digital empowerment, it promotes the integration of online and offline platforms, upgrades information systems, and promotes new models like smart stores. Policies have created opportunities for Yonghui Superstores Co., Ltd. to engage in projects like upgrading key market facilities and advancing information technology transformations. These initiatives include the construction and renovation of cold chain logistics centers and emergency supply central warehouses, as well as the enhancement of the reserve control system for daily necessities.

From the rise of China-chic brands to advancements in smart retail, consumer enterprises on the SSE are creating new demands through innovative offerings. Driven by policies and innovation, the recovery of the consumer market has become a tangible example of the capital market supporting the high-quality development of the real economy.

The above information is provided for reference purposes only and does not constitute investment advice.