Snack food is a 'big industry + small companies', currently in the fourth stage of channel transformation. Chinese and domestic snack brands are rising, and companies with multi-category and supply chain capabilities will have better opportunities.
According to the research report by Haitong Securities, the fashion consumer market, which totals more than 10 trillion yuan in eight areas, including clothing, beauty, food, sports, smart products, home goods, trendy toys, and digital trends, is expected to achieve nearly 10% CAGR in the next five years. This growth is driven by improvements in service manufacturing technology, optimized service experience, changes in channel patterns, and upgraded lifestyles. Fashion consumption provides new and continuing fuel for economic growth.
By 2023, the market size of the Chinese clothing industry will reach 2164.38 billion yuan with an estimated CAGR of 3.5% from 2023 to 2028. The current clothing industry is in a phase of high-quality development and, therefore, the market share of domestically strong branded products is continuously increasing. In the future, upstream innovation in raw materials, fabrics, digital printing technology, midstream AI design, intelligent manufacturing, and downstream channel upgrades are likely to create 'new quality productivity' in the clothing industry.
The development of e-commerce platforms provides opportunities for Chinese domestic cosmetics brands. According to Euromonitor, the market share of China's cosmetic e-commerce channels grew from 13.4% in 2013 to 43.6% in 2023. Domestic beauty brands are gradually shifting from substitutional labeling to improved research and innovative capabilities. They are becoming locally integrated comprehensive beauty groups with strong product quality, multi-brand and multi-category matrices, and efficient organizational systems.
Condiments are considered to be essential and indispensable, and the trend of both quantity and price rising will not be changed. The current market structure is stable with one super brand and many strong brands. Concentration in the industry is expected to gradually increase. Snack foods are a 'big industry + small companies', currently in the fourth stage of channel transformation, and Chinese and domestic snack brands are rising. Companies with multi-category and supply chain capabilities will have better opportunities.
By 2022, the total value of the Chinese sports industry will reach 3300.8 billion yuan, with a CAGR of 9.8% from 2015 to 2022. The total value of sports service industry has significantly increased, and the concentration of the sporting goods industry has remained stable, according to a team analysis. The future development opportunities of the sports industry include the creation of sports IP and further promotion of sporting event operations, the rise of niche sporting events, and the development of smart wearable devices.
Among intelligent household products, sweeping robots are one of the most intelligent products and the replacement rate of sweeping robots is low. By 2023, the market size of sweeping robots in China will reach 13.7 billion yuan. Over the long-term, we believe that the sweeping robots may exceed 100 billion yuan. Globally, leading Chinese brands can push for an upgrade of the industry's product structure and increase in both quantity and price through the expanding overseas channels. In the domestic market, sweeping robots are expected to grow at a significant pace as the product price-performance ratio improves.
(1) Baby products: we aim to accelerate the expansion into an all-channel market since the rise of resident per capita disposable income and parental concepts provide opportunities for the industry, which is gradually moving towards a diversified, all-channel model, based on consumption goods and channel structure. (2) Pet products: centered around pet food, the pet industry is predicted to reach 89.68 billion yuan by 2023, with an expected CAGR of 8.9% over the years 2024-2026. The current pet food market is still relatively scattered, with overseas brands such as Mars occupying a prominent position. It is anticipated that domestic companies will gradually form leading local brands based on quality nutrition, strong product efficacy, and efficient organizational systems.
The trendy toys industry is worth 35.2 billion yuan in 2022. The CAGR increased by 27.9% from 2015 to 2022, mainly driven by the increase in per capita income and the emergence of a new generation of consumer groups. The concentration of the trendy toys industry is low, and various types of players continue to appear. Top companies rely on the entire industry chain to create competitive advantages. In the future, domestic trendy toy brands may develop internationally, promoting the international spread of domestic trendy culture.
As a new industry that combines technology with fashion, the digital trends sector is of high growth, integration, and low carbon. Typical application scenarios include digital assets, digital fashion, and digital entertainment, and are likely to lead to new marketing. Digital entertainment combined with AI, VR, and other technologies will shape the future of new entertainment consumption. With continuous technological upgrades, innovative gameplay, and an improved regulatory system.
Risk warning: Economic downturn, weak retail environment, changes in consumer preferences, and intensified industry competition.
