Hello! I'm your financial analysis assistant. This article from "Brand Planet" is really interesting. It doesn't just pile up dry financial data but uses a unique perspective—Hermès' CEO observing pork prices—to highlight a core logic of the Chinese consumer market in 2026: Consumption is shifting from being about "showing off" to being about "lifestyle." Brands' growth no longer relies on heavy advertising but on deeply engaging with specific life scenarios.
Let me break down this long article into five key points in plain language, so you can see where the money is flowing and how brands are making it.
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1. Pork Prices as a "Social Barometer": Hermès is Waiting for People to Become More Social Again
The article starts with a clever detail: Axel Dumas, Hermès' CEO, uses pork prices as an indicator to observe Chinese consumption.
- Why pork prices?
In China, cheap and plentiful pork often indicates a stable and relaxed lifestyle. More importantly, pork is a central ingredient in banquets and gatherings. If pork prices rise or people are more willing to spend on it, it means they are more social and optimistic about life.
- Hermès' Approach:
Although Hermès sells luxury goods, Dumas is not blindly optimistic. He says the situation is "stable" but hasn't seen a "clear improvement." He is waiting for a signal: when people start to be more social at the dinner table, that sense of joy and celebration will translate into spending on luxury.
- In Plain Language:
It's like waiting for a friend's party. If everyone is busy making money and afraid to spend, there won't be many parties. Only when people feel hopeful about the future and are willing to spend on a good meal or gathering will the atmosphere of spending for pleasure return. Hermès is waiting for that atmosphere because luxury goods sell not just bags but also the emotional value of "I'm doing well."
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2. Shopping Malls Need to Offer More Than Just Goods: Sports Have Become a New Source of Traffic
In the past, malls attracted people by providing places to stroll around. Now, people go running, climbing, or hiking on weekends, so they spend less time in malls. What do malls do? The article says smart malls are starting to "bring sports inside."
- The Trend:
Malls like Evergrande, China Resources, and Wangfujing have noticed that fewer people just come to buy clothes, but more to exercise. So they are adding climbing gyms, anime-themed areas, and pet-friendly zones.
- The Logic:
You go to the mall to climb, and after you're tired, you might buy a pair of shoes, have a meal, or buy some sports gear. Malls turn you from a casual passerby into a customer through these experiences.
- Brands' Opportunities:
Sports brands like Salomon are no longer just targeting professional athletes; they make their products more fashionable and suitable for everyday use. For example, Salomon turns outdoor shoes into trendy items.
- In Plain Language:
Malls have become like large indoor playgrounds with shopping centers. You might spend two extra hours because the environment is good, there's food, and gear is available. Brands take this opportunity to make their products look as stylish as casual wear, making you want to buy them even if you don't exercise regularly.
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3. Hotels Selling Pillows: Atour's Innovative Cross-Cultural Strategy
Atour is a great example. It doesn't just operate as a hotel; it also sells pillows and bedding, and its retail revenue increased by 63.2% year-over-year.
- Why It Works:
You can't try or sleep on a pillow online, so it's hard to know if it's comfortable. But if you stay at a hotel and it's comfortable, you'll be more likely to buy the same product when you go home.
- The Business Logic:
A hotel is a place for experiences, and home is a place for repeat purchases. Atour uses the hotel setting to address the issue of consumers being hesitant to buy. Even if you don't stay, you can still buy its pillows, breaking the limit that hotels can only make money from the number of rooms.
- In Plain Language:
It's like trying out food at a restaurant. If you like it, you'll buy the same seasoning pack when you get home. Atour has turned the simple act of sleeping into a big business.
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4. The More a Brand Knows You, the More It Can Earn: From "Selling Goods" to "Building Relationships"
The article emphasizes that brands are no longer just making one-off sales; they aim for "long-term companionship."
- JNBY:
They use a membership system to know your preferences and what colors you like. They remember what you've bought and recommend clothes based on your wardrobe. This personalized service makes customers more likely to buy again.
- 361° for Children:
Children grow quickly, and their sizes and preferences change. 361° focuses on campus sports and different age groups. Parents need professional advice when buying shoes, and the brand provides this, making them feel confident in their purchases.
- Gaibao Pets (Mafudi):
Pets also get old and may get sick. The brand has expanded from selling regular dog food to offering functional and clinical nutrition. By adapting to the needs of aging pets, it can retain customers.
- In Plain Language:
In the past, business was about a one-time transaction. Now, it's about building relationships. Brands act like your personal stylist, your child's coach, or your pet's nutritionist. The more you rely on their advice, the more money they can make from you over time.
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5. Happiness Is Also Productivity: The Emotional Value in Everyday Items
The article mentions a common phenomenon: people are willing to spend on things that make them happy, even if they're just cheap.
- Tea Brands Turning into Ice Cream:
Brands like Monster Tea and Xicha are making tea-flavored ice cream. The familiar taste of tea combined with the novelty of ice cream makes you want to try it.
- Popeye Mart (Blind Boxes):
When your favorite character has a new design, you want to buy it again. The anticipation and surprise encourage repeat purchases.
- Stationery and Daily Goods:
Brands like Morning Light and Muji print their IPs on pens, notebooks, and cups. You buy these items not just for writing but also for the design and the feeling they bring.
- The Core Logic:
With limited budgets, consumers distinguish between necessities and items that bring joy. For necessities, they compare prices; for items that add emotional value, they're willing to spend more. Brands that offer a little more reason to like their products can capture this segment of the market.
- In Plain Language:
Life can be stressful, so we need little moments of happiness. A nice-looking pen, a cute blind box, or a new flavor of tea can make you feel better. Brands that capture these small moments of joy can generate frequent sales.
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Summary: The "New Map" of Chinese Consumption in 2026
Putting these five points together, we can see three key changes in the Chinese consumer market:
1. Scenario-Based Consumption: Consumption is happening in specific life scenarios like sports, sleep, socializing, and pet care. Brands must be present in these contexts to be noticed.
2. Specialization and Emotionality: Brands either excel in a specialized field or in creating emotional connections (like with IPs or member services). Those that are neither specialized nor distinctive will be marginalized.
3. Long-Term Focus: The era of acquiring customers through mass marketing is over. Now, it's about retaining existing customers and adapting products to their changing needs (such as children growing up, pets aging, and changing tastes).
Implications for Everyone:
As consumers, you'll see brands becoming more considerate and understanding of your specific needs, offering more small, enjoyable surprises.
As entrepreneurs or brand owners, don't just focus on how to sell products; think about how to integrate into people's lives and provide continuous, enjoyable experiences that make them loyal to your brand.
Hermès' CEO is watching pork prices because he's actually watching people's hearts. When people's hearts are warmer, consumption flourishes.