CITIC Securities: The fundamentals of the social services and retail industry will continue to be under pressure in 2024. Companies with strong brand attributes are expected to continue to outperform.

CITIC Securities summarized the social service and commerce industry's 2024 annual report and 2025 first quarter report, stating that the industry's fundamentals continued to be under pressure in 2024, with most industries and companies still greatly affected by macro factors. However, a group of companies that are going against the trend and breaking through the consumption downgrade have emerged. To embrace this new wave of consumption, the key is to upgrade from category to quality to brand. For example, hotels and catering should highlight unique features in services or products, cosmetics should demonstrate product matrix and innovation capabilities, supermarkets and department stores should focus on quality-price ratio, and gold and jewelry companies should seize the combination of craftsmanship and fashion. These are the successful paths to forming a brand at present. It is expected that in 2025, these companies will better reflect growth potential and brand value.