Emotional value drives new youth consumption trends in China

Tourists select cultural creative products at the Hebei Museum in Shijiazhuang, north China's Hebei Province. (Photo/Chen Qibao)

Market observations reveal a clear shift in Chinese youth consumer attitudes: previously, purchases were more function-oriented, but now, emotional value plays a bigger role. Young consumers are increasingly seeking emotional resonance and psychological satisfaction through their purchases. This pursuit of emotional value is driving youth consumption toward personalization and experiential purchases, prompting businesses to incorporate deeper emotional elements into their product designs.

"When we're buying 'guzi,' we're not just buying products—we're buying happiness," said a college student surnamed Chen, who recently visited Bailian ZX Crafted Fun Zone at Wujiaochang, a business hub in Shanghai, with friends on a weekend outing.

The word "guzi," a homonym for the English word "goods," refers to badges, acrylic character stands, cards and other merchandise featuring ACG (animation, comic and game) culture elements.

Bailian ZX Crafted Fun Zone is the second anime-themed commercial complex launched by Bailian, a Shanghai-headquartered retailer, in late 2024, following the 2023 success of Bailian ZX creative center. The zone quickly became a "paradise" of guzi in the hearts of young people. In addition to buying guzi, young people can participate in various other activities that delight them.

At the world's first Shinkai's Works Cafe—a themed space celebrating Japanese animator Makoto Shinkai—located in Bailian ZX Crafted Fun Zone, Chen ordered a special coffee drink inspired by the anime film "Weathering With You" by Makoto Shinkai, took photos with character standees, and selected several anime-themed badges.

"Both anime and coffee are very therapeutic," Chen immediately wrote in a post on his WeChat Moments.

Bailian ZX Crafted Fun Zone integrates themed food services, bookstores, social spaces, game experiences, and themed photography. So far, more than 60 new brands have settled in, with the ratio of first stores accounting for nearly 80 percent. With its business area approaching 20,000 square meters, it offers a more youth-friendly social experience, according to Cao Hailun, general manager of Shanghai Bailian Group Co., Ltd.

According to data analysis provider iiMedia Research, the market size of China's "guzi economy" hit 120.1 billion yuan ($16.59 billion) in 2023 and jumped to 168.9 billion yuan in 2024. The sector's market size is projected to reach 308.9 billion yuan by 2029.

Behind the booming "guzi economy" lies young consumers' recognition of outstanding animation and other cultural works, reflecting a shift in consumer demand from practicality to emotional value.

A report released by the China Consumers Association pointed out that emotional value would become a crucial factor influencing young consumers' purchasing decisions.

Zhang Juan, deputy director of a research center in Shanghai, believes that the rise of emotional consumption among young people is no coincidence. In essence, it reflects the prioritization of spiritual needs after material needs are satisfied. Young people's willingness to pay for the emotional value of products stems from increased income levels and the growing need for mental relaxation and entertainment.

A new wave of emotional consumption rooted in spiritual and cultural needs is emerging, catalyzing new consumption scenarios and business forms.

On a high-speed train home, Wang Ting, a post-2000s tourist from east China's Shandong Province, was preparing to post photos and videos taken during her trip to Luoyang, central China's Henan Province, on video platforms.

"I came to Luoyang specifically for Hanfu makeup and styling. Luoyang is an ancient capital with rich historical and cultural resources. Young people wearing Hanfu are everywhere, making you feel like you've traveled back to ancient China," Wang said.

Rather than simply going sightseeing, she prefers immersive experiences like Hanfu photography and interactive exchanges.

According to Wang, the widespread popularity of internet platforms and social networks has created conditions for emotional consumption. Consumers from all over the country can share their consumption experiences online, making it easier to find "like-minded enthusiasts" with similar hobbies. Through interactions, they influence each other's purchases, further stimulating the potential for emotional consumption.

To meet new demands for emotional consumption, some scenic spots have created more immersive and culturally rich consumption scenarios through digital transformation and audio-visual technology.

The emergence of emotional consumption is a result of evolving consumer expectations, said Hong Yong, associate researcher at the e-commerce research institute of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

With growing affluence, people gradually shift from basic living needs to personalized, quality-oriented, and diversified demands, Hong noted.

The development of new consumption areas illustrates how the improvement in socioeconomic development and consumers' exploration of diverse lifestyles are providing more choices for consumers while spurring emerging businesses and market opportunities.