Orient Securities released a research report stating that the consumption preferences of technology professionals will become a core growth driver for traditional consumption sectors and a key factor influencing medium- to long-term industry development. Drawing on the evolution of apparel and fashion consumption among overseas tech professionals and based on expectations for the development stage of domestic tech professionals' fashion consumption, the firm highlights several investment opportunities. Current top recommendations include the sports leader ANTA SPORTS (02020), which owns numerous high-performance and comfortable outdoor sports brands; LI NING (02331), known for its strong national-trend label; high-tech functional home textile leaders LUOLAI LIFESTYLE (002293.SZ) and MERCURY HOME TEXTILE (603365.SH); and premium menswear leader BIYINLEFEN (002832.SZ), recognized for product quality and comfort as key advantages.
Orient Securities' main views are as follows:
The consumption of technology industry professionals is set to be a core incremental driver for traditional sector consumption and a significant area to watch. As China's economy transitions from traditional industry dominance to comprehensive tech industry leadership, and amid the wave of AI accelerating global tech industry development, societal progress, industrial differentiation, and the accompanying wealth redistribution are profoundly impacting the consumption sector. Internationally, tech professionals' consumption has generally evolved from anti-fashion minimalism to comfort and functionality, and then to quiet luxury, offering valuable insights.
Influenced by work nature and thinking styles, overseas tech professionals initially displayed certain anti-fashion characteristics—embracing minimalism (even "unpolished" looks) and reducing decision-making steps, with typical attire including T-shirts, hoodies, and jeans. Subsequently, as wealth accumulation increased the pursuit of quality of life and some tech leaders set aesthetic trends, preferences gradually upgraded to comfort, functionality, and even quiet luxury. From the uniform-like wearing of Patagonia fleece vests, jeans, and Allbirds sneakers to Loro Piana cashmere sweaters and Brunello Cucinelli custom T-shirts, the style of tech professionals has continuously evolved.
The firm believes that during this consumption upgrade process, tech professionals' core demands for apparel and fashion items maintain certain consistencies: minimalism and logo-free designs, prominent practical functionality (preferably tech-enhanced), durability and easy care, use of high-quality raw materials, and brands that advocate for environmental sustainability. Orient Securities assesses that domestic tech professionals' fashion consumption is currently in the transition phase from minimalism to comfort and functionality, presenting better development opportunities for brands aligned with this positioning.
Currently, China's tech industry is in a phase of rapid development with intense competition, offering substantial opportunities alongside challenges from global industrial rivalry. In this context, the firm judges that domestic tech professionals' fashion consumption is primarily in the upgrading stage from minimalism to comfort and functionality. Brands featuring "strong practical functionality + easy maintenance + tech enhancement + good materials" are well-positioned to gain favor among tech professionals.
Fashion consumption ultimately serves as an important medium for expressing cultural concepts and influence. The advancement of the tech industry will also provide fertile ground for the development of domestic consumption brands, particularly designer labels. The recently concluded Met Gala (the Metropolitan Museum of Art's Costume Institute benefit in New York) in May was humorously dubbed "Tech Gala" by the market due to the participation of numerous tech giant executives. The firm notes that tech giants' engagement with the fashion circle relates partly to personal taste pursuits, corporate globalization, and enhancing cultural influence, and partly to close ties with corporate investment strategies. The fact that many tech executives at this Met Gala opted for independent designer brands over high-end luxury labels reflects tech professionals' unique pursuit of fashion items and their support for entrepreneurial brands.
Orient Securities believes that the broader context of China's tech industry leading economic development will further bolster cultural confidence. The consumption upgrade in fashion among tech professionals is also a medium-term megatrend. Consequently, the firm anticipates that domestic consumption brands with local cultural characteristics will gain more development space in the medium to long term.
Risks include a slower-than-expected recovery in domestic consumption, intensifying industry competition, and lower-than-expected sales of new products from related companies.
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