Consumer Discretionary

Report by Horizon Insights

Horizon recently met with investors and exchanged views on China consumer trends. The primary focus of this analysis revolves around Chinese brands "domestic substitution strategy". This strategic approach adopted by local brands involves a calculated penetration into diverse consumer sectors within China, with the exception of luxury markets. Noteworthy achievements by certain companies across various sectors, such as Luckin Coffee, Gambol Pet, Miniso, Anjoy Food, Flyco, etc. These companies have effectively tapped into the lower-tier markets, offering cost-effective products in areas that international brands tend to overlook. Following the acquisition of substantial market shares and the establishment of brand recognition, these local companies subsequently enhance their product offerings and services, thereby cementing their competitive stance.