Will domestic consumer goods become the next market hotspot, from "pot strong" to "stock strong"?

"July turns around, August is red," the bull market in A-shares continues to burn in September, while the previously underestimated consumer stocks gradually come into the market's focus.

Unlike previous bull markets, in this round, traditional consumer sectors such as liquor, duty-free, and home appliances are no longer the leading sectors for the market and consumer stocks, and various "Moutai index" stocks have performed quite mediocre.

On the contrary, segmented leading enterprises that align with public consumption characteristics, can stimulate market consumption enthusiasm, and resonate with public sentiment are gradually receiving investment attention. Sometimes, a genuine lemon, an indestructible pot, or an unavailable pizza can suddenly trigger a "resonance point" for consumers and investors, leading to a good market performance.

Can a "pot" drive a wave of market movement?

On September 8, ASD quickly surged after a slight opening decline, reaching a high of over 7% during the day, and closing up 4.75%.

ASD's strong performance that day may be related to a viral internet video that suddenly gained popularity. The video was taken from a news report titled "A man in Zhejiang forgot to turn off the heat after heating traditional Chinese medicine, and the small fire burned for 27 days without incident." Interestingly, netizens did not simply draw fire prevention lessons from it; instead, they began to look for the "indestructible pot" that had been used for 27 days. Ultimately, this pot was confirmed to be produced by ASD, leading to a wave of interest in the "indestructible pot."

From an indestructible pot to the search for "pot strength," the entire process is filled with the current internet's characteristics of "analogous reasoning" and "spontaneously creating hotspots," but behind it is the trend of domestic consumer goods companies, with both "quality" and "quantity" rising, and their brand gradually being recognized by the public, thus gradually replacing foreign imports in market share.

A lemon drives a wave of hot sales

There are multiple cases where sudden news events trigger public consumption recognition.

In March this year, before and after the listing of Mixue Ice City, discussions and debates arose regarding whether its lemonade used genuine fresh lemon slices.

However, after the public confirmed that Mixue Ice City's lemonade was indeed made with "freshly cut and mashed" lemon slices, a wave of consumption enthusiasm quickly formed. With the warm reception of various recognition sentiments, Mixue Ice City quickly generated a significant market movement after its listing.

From the stock price perspective, the lowest price of Mixue Ice City on its first day of listing was 256 yuan, which remains its historical lowest price to date, while it surged to over 618 yuan at its highest within the year, with a maximum increase of over 140%.

A pizza drives a bull stock

In fact, there are precedents in overseas capital markets for cases where a flagship product drives a company's sustained growth This year, in August, a piece of news from Hebei sparked much discussion: the news reported that Domino's opened its first store in Handan, achieving sales of over 540,000 yuan on the opening day, with 6,020 orders, breaking the global sales record for Domino's stores.

Behind this news, Domino's, as a consumer chain restaurant enterprise with locations around the world, has long been a long-term bull stock in the U.S. stock market.

From the stock price perspective, Domino's, as a restaurant chain focused on pizza, has increased nearly 30 times in the U.S. stock market over the past sixteen years. This is closely related to its appropriate product positioning, gradually enriched product categories, and the enormous growth space it has gained in the consumer goods market.

The Trend of "Domestic Goods Consumption"

Looking back at the above case, the market performance of ASD's "good pot" reflects the era of gradual iteration and upgrading of domestic consumer goods. From this major trend, it is evident that the market's recognition of A-share consumer stocks will clearly not end in the short term.

Behind the popularity of Mixue Lemon Tea, it showcases the positive interaction between the business world and the investment world in the consumer industry, a relationship that is particularly evident in the performance of new consumer industries and consumer stock trends.

Domino's Pizza demonstrates the vast space for a consumer product with good quality and cost-effectiveness in the global market.

In this sense, the path of domestic consumer goods from "strong pots" to "strong stocks" will not stop but will only become broader