---
title: "How Long Can New Consumption Stay Hot?"
description: "Yiou Think Tank has released the \"2021 China New Consumption Development Insights and Brand Power List.\" Once upon a time, new consumption entrepreneurs were eager to \"redo all consumer tracks.\" However, the enthusiasm and impulse for new consumption seem to be fading, and \"how long can new consumption stay hot\" has become a hot topic in the market. In 2019, the \"hit product\" strategy and aggressive VCs fueled the new consumption track—Bear Electric became the \"first stock of small home appliances\" with its hit \"yogurt maker,\" and Perfect Diary went public \"at a sprint\" five years after its founding. According to Yiou data, in 2019, there were 590 investment events in the new consumption market, with a total transaction amount exceeding 62 billion yuan."
author: "武玥"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2022-01-14"
language: "en"
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# How Long Can New Consumption Stay Hot?

> Yiou Think Tank has released the "2021 China New Consumption Development Insights and Brand Power List." Once upon a time, new consumption entrepreneurs were eager to "redo all consumer tracks." However, the enthusiasm and impulse for new consumption seem to be fading, and "how long can new consumption stay hot" has become a hot topic in the market. In 2019, the "hit product" strategy and aggressive VCs fueled the new consumption track—Bear Electric became the "first stock of small home appliances" with its hit "yogurt maker," and Perfect Diary went public "at a sprint" five years after its founding. According to Yiou data, in 2019, there were 590 investment events in the new consumption market, with a total transaction amount exceeding 62 billion yuan.

Source: Yiou.com
(ID: i-yiou)
Yiou Think Tank releases "2021 China New Consumption Development Insights and Brand Power List."
Once upon a time, new consumption entrepreneurs were eager to "redo all consumer tracks." However, now, the enthusiasm and impulse for new consumption seem to be fading, and "how long can new consumption stay hot" has become one of the hot topics in the market.
In 2019, the "hit product" strategy and aggressive VCs fueled the new consumption track—Bear Electric became the "first stock of small home appliances" with its hit "yogurt maker," and Perfect Diary went public "at a sprint" five years after its founding. According to Yiou data, in 2019, there were 590 investment events in the new consumption market, with a total transaction amount exceeding 62 billion yuan.
However, two years later, under factors such as the sudden and repeated impact of the pandemic and global economic growth uncertainty, the total retail sales of consumer goods entered a low-growth stage. According to data from the National Bureau of Statistics, from January to November 2021, the overall growth of social retail sales slowed, with online retail sales growth basically maintained at around 15%.
As a result, new consumption also directly faces issues such as weakened consumption momentum. Data from Double 11 in 2021 showed that the total online transaction amount was 965.12 billion yuan, failing to break the trillion mark, with year-on-year growth dropping from 43.33% in 2020 to 12.22%.
At the same time, some new consumption brands have poor sales, and new consumption brands that frequently topped the charts in previous years are being replaced by traditional international brands...
Behind these signs, is it a sign that "new consumption is no longer hot"?
******Traffic Growth Drying Up, Hit Product Strategy Declining: How Long Can New Consumption Stay Hot?**
Behind the question "how long can new consumption stay hot" is a discussion about **new consumption growth falling short of expectations** and **the failure of traditional growth methodologies**.
Take Perfect Diary and Three Squirrels, two brands that grew up in the "traffic era," as examples.
After Perfect Diary went public, its stock price fluctuated and fell. As of the close on January 9, 2022, the stock price of Yixian E-commerce, Perfect Diary's parent company, fell to $1.90, down more than 90% from its high point; Three Squirrels' stock price also fell by more than half from its high of 91.09 yuan per share in 2020, closing at 40.01 yuan per share on January 7, 2022.
At the same time, the number of new internet users has significantly decreased.
Relevant statistics show that in 2020, the number of mobile internet users in China reached 897 million. As internet penetration tends to saturate, the number of new internet users will become fewer and fewer; at the same time, the cost of traffic promotion for merchants is getting higher and higher—compared with 2018, the average customer acquisition cost for Alibaba's e-commerce increased by more than 230% in 2020. Brands are gradually becoming "workers" for traffic.
Even if brands are willing to pay high fees for traffic, in the context of fragmented information dissemination, consumers' impressions and awareness of emerging brands are often not deep. Advertising effects from the TV era, such as "Sheep, sheep, sheep, Hengyuanxiang" and "Give gifts, give Brain Platinum," are increasingly difficult to achieve.
These phenomena mean that **traffic growth is drying up, and the methods of exchanging advertising for traffic and creating hit products to drive sales and development are becoming ineffective.** New consumption brands urgently need to find new growth methodologies.
******New Consumption Returns to a Growth Methodology Centered on Brand Power**
With changes in population environment, supply relationships, and channels, the new consumption market is in a period of transition from old to new, that is, from traffic growth to brand growth.
From 2013 to 2020, the mobile internet developed rapidly. Brands rode the dividend of mobile internet traffic and grew rapidly relying on traffic strategies.
During this period, **the core growth methodology for brands was "hit products + traffic," while relying on the power of capital to rapidly expand and go public.** The aforementioned "Three Squirrels" and "Perfect Diary" are typical brands that grew rapidly during this period.
Currently, as the dividend of online traffic gradually disappears and the price of traffic rises, Yiou Think Tank believes that **since 2020, we have entered the era of brands.**
New consumption brands pay more attention to brand building, driving growth with a "product + brand" dual-wheel approach, emphasizing product value while using brand as a moat to promote the long-term growth of new consumption enterprises.
Multiple experts interviewed by Yiou Think Tank said that **the biggest change in new consumption in 2021 is that "the new consumption market has returned to being driven by brand power as the core factor."**
Ying Shanshan, a digital expert in new consumption, said: "Agile operations, heartfelt brands, and valuable products are the most valuable sources of growth."
Lin Min, CEO of Molis Data Group, said: "Brand power is one of the key factors for new consumption brands to realize value. Enterprises that rely on external dividends as their core competitiveness will not last long. The core competitiveness of a truly excellent brand comes from within; external resources are only auxiliary."
However, brand building is not completed overnight. From the early stage of brand growth—selling the first product—to reaching a sales scale of 1 billion, **the gradual maturity of a brand often requires time to accumulate.**
Take Bananain and Ubras in the new apparel field as examples. Both chose to "break through" with super single products and continuously expand category boundaries and enhance product capabilities.
Among them, Bananain's 500E comfortable socks and 301P underwear have ranked TOP1 in JD.com's underwear and socks categories for two consecutive years, and Ubras's hit underwear single product sales exceeded 100 million yuan, becoming the top seller in the size-free underwear category during "618" in 2020.
At the same time, on the brand side, both chose spokespersons with high attention among young people. In May 2021, Bananain announced Zhou Dongyu as its brand spokesperson, and in October of the same year, announced Wang Yibo as its spokesperson; Ubras chose Ouyang Nana as its first brand spokesperson.
Ubras spokesperson Ouyang Nana
Image source: Ubras Weibo
In addition, in terms of channels, Bananain and Ubras have also successively opened offline stores. In January 2019, Ubras opened its first offline store in Shanghai; in 2021, Bananain opened its first offline store.
After 2030, we will enter the era of technology consumption. With the continuous expansion and penetration of new technology forces in various fields, future new consumption brands will definitely be deeply combined with technology, forming a new moat for brands.
******Under New Populations, New Supply, and New Channels: How Can New Brands Seize Opportunities?**
Against the background of continuous changes in the entire new consumption population and environment, and the accelerating application of new technologies, new consumption faces new demands from new populations, new product supply, and a new environment where new channels such as live-streaming e-commerce are penetrating and rising. How should new consumption brands seize opportunities?
**"Seize consumers' core pain points + reach users with content + occupy consumers' minds with brand power + improve corporate operational efficiency"** might be one of the paths for the rapid development of new consumption brands at present.
In 2021, the entire consumer industry seemed to be saying "user-centric." Hu Aiguo, CEO of Shunhao Co., Ltd. ELON Yilong, said in an interview with Yiou Think Tank that **the most obvious change in the new consumption market from 2021 to 2022 is from "enclosing land" to "enclosing people," that is, brand communication targeting end consumers, paying more attention to consumer behavior research, and placing more emphasis on grasping consumer lifestyles.**
In fact, with excess product production and decentralized communication, **traditional channel power is being deconstructed, and the rise of consumer sovereignty is the main theme in the current consumer field.**
Taking the catering field as an example, Yiou Think Tank research found that new consumer groups are gradually becoming the main force in catering consumption, and the out-of-home dining market is gradually becoming an important component of catering.
According to Meituan data, among catering consumers in 2019, the post-90s generation accounted for 50.4%, while this group accounts for about 17% of China's total population, which also shows that this group is more willing to embrace new business models.
Catering consumption is also breaking through original scenario limitations, with takeout, group meals, and retailization becoming the focus of catering enterprises. Many catering retail products have emerged in the market—Yunhaiyao, Xibei, Haidilao and other catering companies have successively launched self-heating pots, instant rice noodles, and other products. This change is precisely catering to the needs of young people who stay at home.
"Good wine also fears deep alleys." In an era of more decentralized communication, new brands are reaching consumers with high-quality content.
**With the rise of short video platforms, lifestyle sharing platforms, and live-streaming platforms, traffic is being redistributed from large oligarchs to multiple small oligarchs.**
**Among them, live-streaming e-commerce has gradually risen to become one of the channels for new brands to deploy in 2021.** According to survey data from the China Consumers Association, the average penetration rate of live-streaming e-commerce shopping users (live-streaming shopping users/platform shopping users) across the five major e-commerce platforms has reached 40.7%.
Image source: Yiou Think Tank "2021 China New Consumption Development Insights"
Live-streaming e-commerce provides brands with the opportunity to face consumers directly. Here, every click by consumers is converted into data and traffic. Brands identify groups, find target users, continuously provide products and services to consumers, and complete purchase transactions.
Currently, growth centered on building brands has also become a path unanimously recognized by brands.
We can see that the Chinese-featured brand "Florasis" is breaking out of the Chinese market and going global. Tmall data shows that during Double 11 in 2020, consumers from more than 100 countries and regions purchased Florasis products on Tmall;
"Pop Mart," which focuses on the spiritual and cultural consumption of young people, is being loved by more people. Its 2021 interim report shows that as of June 30, 2021, Pop Mart's cumulative registered members increased to 11.415 million, with revenue growing 116.8% year-on-year.
Image source: Yiou Think Tank "2021 China New Consumption Development Insights"
The rapid growth of new consumption brands in the digital era is also closely related to the efficiency improvement brought by multi-terminal digital applications. Yiou Think Tank found that **in multiple vertical fields of new consumption, digitalization is becoming a key factor driving enterprise growth.**
For example, in the retail market, the rapid evolution and application of emerging technologies such as IoT, AI, and cloud computing enable massive data to be stored and accumulated, and enhance the readability and operability of data.
In turn, technology promotes the rapid growth of data in both "measurable dimensions" and "overall magnitude." The effectiveness of data gradually emerges, enterprises get closer to the market, improve operational efficiency, and consumers also benefit from the resulting optimization of customer experience.
With the help of data, the turnover efficiency of the retail market improves. According to KK Group data, the product listing cycle is basically controlled at less than 30 days. Compared with the traditional retail industry's 90-day new product listing cycle, KK Group shortens the listing cycle through a "buyout" procurement model and a "buyer" model driven by big data.
New changes in the market will definitely create new opportunities. For new consumption brands, **new populations, new supply, and new channels bring not only trend changes in segmented markets, but also excellent opportunities for new categories and new brands to break through.**
******New Opportunities and Challenges in 2022**
The hottest concepts and opportunities in 2021 are none other than **"metaverse" and "carbon neutrality."** With the development of new concepts and the proposal of new requirements, the development of new consumption in 2022 will also face new opportunities and challenges.
Wang Bin, President of Yiou EqualOcean, stated at the new consumption special session of the 2021 WIM Conference that for entities in the consumer market, the challenge brought by carbon neutrality is the carbon emission management of the entire life cycle of consumer goods.
Benchmarking overseas markets, zero-carbon product specialty stores have already landed, and platforms such as Amazon have also set carbon neutrality labels to screen low-carbon products. With the development of China's carbon market, China will also see products with low-carbon labels.
At the same time, **carbon neutrality is not only one of the corporate social responsibilities, but also an opportunity for new consumption brands to elevate themselves.** All consumer enterprises, in addition to focusing on revenue and profit, will have carbon emissions as the third important indicator.
In terms of the metaverse, Yiou Think Tank believes that **the future development of metaverse underlying technologies and their gradual integration with the real economy will bring unlimited imagination to new consumption.**
Especially the combination of consumer electronics and the metaverse—consumer electronic products, as important extensions for humans to feel and observe the world, transcend time and space in product experience, integrating immersive experiences that blend reality and virtual worlds, opening up more imagination for the consumer electronics track.
Not only in the consumer electronics field, but in the future, as digitalization deepens further, new application scenarios will bring more consumer demand.
Standing at the current starting stage of the metaverse, Shen Pengtao, Consulting Director of Yiou EqualOcean, believes that in the future, the metaverse will start from games and involve various industries in the transformation of technology + content + scenarios.
******Conclusion**
Based on the above observations, **Yiou Think Tank launches the "2021 China New Consumption Development Insights and Brand Power List"**, focusing on the ten areas with high voice in the new consumption market, taking brands that are produced locally in China, target Chinese consumers, and meet Yiou Think Tank's definition of new consumption brands as research objects, sorting out the characteristics of the new consumption market, the current status of vertical markets, and market development trends in 2022.
At the same time, based on the "VIG Compass" new consumption brand power model and scoring by expert review panels and institutional review panels, Yiou Think Tank finally selected 127 brands from more than 4,000 brands to be included in the 2021 new consumption brand power list.
**Are you "watching" me?**


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