Known as the "pioneer of China's hard discount", it will impact the Hong Kong stock IPO.

These days, there is a new piece of news in the local retail circle in Hunan. Starting from a small store of less than 100 square meters next to Central South University, the capital movement of Lefilife, known by many as the "originator of Chinese hard discounts", has been reported. However, this time, the protagonist is not Lefilife itself, but a brand in the same system - Lefriends, which will impact the Hong Kong IPO. As a hard discount brand that originated from Hunan, why would they want to list on the Hong Kong Stock Exchange? Many people, especially those from out of town, do not understand. But in fact, the answer lies in the underlying logic of the current consumption market - when consumers no longer pay a high premium for brands, discount retail is becoming a new trend to cross the cycle. Looking back at the rise of Lefilife, when Chen Zhengguo opened the first store in Changsha in 2011, he set the tone of "cheaper than wholesale markets". By eliminating middlemen, direct cash procurement, and minimalist decoration, this model allowed it to break through the siege of traditional supermarkets. Now, the national stores have exceeded 9,000, with annual sales exceeding 50 billion. And Lefriends, as an upgraded version, not only shares the parent company's supply chain, but also has over 200 stores in Guangdong and other places, with a single store area of over 200 square meters, covering all categories of daily necessities. Looking across the country now, from the launch of the Super Box discount store by Hema to the continued expansion of Sam's Club, and the continuous breakthrough of the Outlet market, a retail war of cost-effectiveness is unfolding. With the overall race track soaring, and the strength so strong, they naturally try to open the door to the capital market with more refined operations. Apart from offline, the online side is also lively. As the representative of "online outlet", Vipshop's active super VIP users are expected to reach 9.8 million by 2025, contributing over half of the platform's sales. The experience of netizen Xiao Zhou is quite representative: "I was planning to go hiking on May 1st, and the Salomon hiking shoes that cost a thousand yuan at the counter can be bought for around 500 on Vipshop, saving enough money to buy a high-speed train ticket." This kind of consumer mentality of wanting both brand quality and discounted prices has become a true portrayal of young people today. In the past decade, consumers have become accustomed to "full discount shopping" but have also become tired of complex rules, and the consensus of saving money while spending has slowly become established. Now, consumer rationality has returned in full force. The slogan of Lefriends "every item is at wholesale price" and Vipshop's strategy of "3-7% off all year round online" happen to hit this pain point, and the discount play is naturally popular. Now it seems that the trend of discount retail is irreversible, and the cost-effectiveness play is destined to be on the rise. For consumers, whether shopping at Lefriends, outlets, or online sales, being able to buy a better life with less money is also a kind of dividends of the times.