Four factors drive the rise of domestic brands
In terms of economic factors, China’s total retail sales of social consumers reached 39.2 trillion yuan in 2020, which is about to surpass the United States and become the world’s largest consumer market. In terms of industrial factors, as the world’s largest manufacturing country, we have the most perfect supply chain system. In the list of the world’s top 500 enterprises in 2020, the number of enterprises in China reached 143, ranking first in the world for two consecutive years. In terms of cultural factors, Guochao brand is deeply loved by young people, and the attention of domestic hot words has increased by 528% in the past decade. In terms of political factors, under the superposition of multiple factors such as epidemic situation, trade friction and industrial chain reconstruction, China’s economic development idea has gradually changed from “world factory” to “double cycle development”. The endogenous demand power of China’s economy will be the main source of support for the follow-up repair of China’s economy, and the rise of domestic brands is just at that time.
International Comparison: Guochao brand has entered a golden development period of ten years
From the horizontal comparison of economic characteristics, population structure and main consumption force, China’s current consumption stage can be compared with the United States and Japan in the 1970s and 1980s. Significant consumption characteristics, such as branding, quality, personalization, high-end and convenience, have also given birth to a number of high-quality consumer goods leaders: for example, excellent enterprises such as Wal Mart and Disney compound in the United States are growing at a rate of more than 20% 80, as well as the net profit of the century
Business and Coca Cola have become the benchmark of value investment; In the field of consumer goods in Japan, a number of consumer goods leaders with excellent performance and stock price have also been born, such as Asahi, AEON, kamikawan, weizhisu, huawang and Shiseido. At present, China has emerged new energy consumption brands such as Yuan forest, bubble Matt, perfect diary and vibrato. In the future, the brand of domestic products represented by tiktok 20] is expected to rise rapidly.
Product, channel and marketing work together to reshape brand innovation
From baby boomers to x-y-z-smart generations, intergenerational change is often an important time window for the revival of traditional brands and the birth of new brands, while brand remodeling needs to grasp the consumption demands of different groups. In terms of products, improve quality, meet the demands of health and convenience, and present personalized innovation. In terms of channels, integrate Wuxi Online Offline Communication Information Technology Co.Ltd(300959) with digital means to reach consumers more accurately. In terms of marketing, take consumers as the core to improve efficiency and user experience. The trinity of product, channel and marketing reshapes the brand connotation.
In 2022, we will explore investment opportunities in consumption segments and focus on recommending Guolian consumption [Guochao 20]
Food and beverage: grasp the double main line of price increase and high-end consumption. The cost of popular food has generally increased this year, and the performance is under pressure. We pay attention to the performance of leading companies after the plight reversal after the price increase in condiment, quick freezing, snack food and beer industries. Besides, Baijiu Baijiu is in stable demand, focusing on the premium premium of high-end liquor and the opportunity of improving the Baijiu liquor.
Agriculture, forestry, animal husbandry and Fishery: in terms of seed industry, the approval scheme of genetically modified varieties has been implemented, and the leaders enjoy the double dividend of industry expansion + market share increase. In terms of pigs, low pig prices have accelerated the de production rate of pigs. Pig prices are expected to hit the bottom and rebound, and enterprises with excellent cost control are expected to enjoy industry dividends. Household appliances, light industrial textiles and clothing: the top five segments with the fastest revenue growth in 2021q3 are clean small household appliances, household products, kitchen and bathroom appliances, textile manufacturing and entertainment products, which are optimistic about the leaders of the segment track.
Trade and social services: the trend of overseas consumption return is favorable and duty-free; We are optimistic about the substitution of cultivated diamonds for natural diamonds; In the era of “beauty economy”, the cosmetics sector continues to have a high outlook and the marginal improvement of the demand side of the catering and hotel sector.
Cultural media: as the interactive scene of the next generation Internet, metauniverse is still in its infancy; It is recommended to pay attention to games, live e-commerce and community group purchase.
Risk statement
Risks such as macroeconomic downturn, repeated epidemic, intensified competition, product safety and rising cost.
