What’s changing
Chinese consumers are no longer purchasing only to serve or to be seen in 2025. There is a growing preference in buying choices based on emotional values, including comfort, identity, values, and how a product will make them feel. The recent study of the Hub of China refers to this as the emergence of the Emotional Economy in China.
To a lot of people, economic uncertainty has been a stimulus to caution. When the product is emotionally relevant, big, and displays spending is less relevant, but people are ready to spend money. The emotional appeal is what swings the vote, whether it is a lipstick or a new line of coffee, or a wellness app.
Why it’s happening
- Economic caution
With slower growth and property pressures, consumers are more selective. Hub of China found that households are looking for value, but “value” increasingly means emotional return, not just price. - Identity & values
Younger consumers, especially Gen Z, expect brands to align with their worldview. Sustainability, domestic pride, and ethical production aren’t “nice to have” anymore; they’re reasons to buy or to avoid. - Well-being needs
Stress and busyness push people toward purchases that offer comfort or calm. Hub of China’s groups in Shanghai and Chengdu described buying small wellness items, candles, teas, and skincare as “emotional top-ups.” - Experience as a utility
Beyond the product, how it feels to receive, unbox, and share matters. A strong emotional experience is part of the product’s usefulness.
What we’re seeing on the ground
- Light touch social business: On Xiaohongshu, the personal stories or photos of small daily improvement are more active than sophisticated advertising.
- Sustainability indicators: According to our fieldwork, consumers feel better about a purchase when recycled packaging or carbon footprint information is used, even in cases when prices have been raised.
- Home appeal: Guochao, the glorification of Chinese cultural aspects, can be applied, but only in minor forms. One of the respondents put it very simply: I want something new but in the fashion that we can call our own.
What it means for brands
- Connect emotionally, not just functionally: Talk about how products fit into lives, not just what they do.
- Show proof: Emotional claims fall flat if they’re not backed by quality or transparency.
- Design for experience: Packaging, after-sales care, and even small details can deliver emotional impact.
- Support community: Encourage authentic sharing and peer stories. Emotional resonance spreads when people see others feeling the same.
Risks to watch
- Over-promising feelings without delivering leads to disappointment.
- Not all consumers are swayed by emotion first; price-sensitive groups still value practicality.
- Regulatory pressure around health and well-being claims can limit how far emotional narratives can go.
Outlook
The emotional economy in China will further intensify in 2025 and 2026. Hub of China anticipates segmentation to become more acute: age groups, cities, and income levels of people will have different emotional requirements. The brands that integrate the emotional appeal with the operational performance, trustworthy quality, open claims, and reasonable pricing will be in the best position to emerge as the winner in the emotional economy of China.
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Frequently Asked Questions
Q1. What is the Emotional Economy?
The Emotional Economy refers to the shift where consumers base their buying decisions on feelings, identity, and values rather than just function or price.
Q2. Why is the Emotional Economy growing in China?
It is growing because of economic caution, identity-driven choices, wellness needs, and demand for meaningful experiences. Chinese consumers want products that connect emotionally.
Q3. How does the Emotional Economy affect brands in China?
Brands must design products and marketing strategies that highlight emotional benefits, authenticity, and community connection to succeed in China’s emotional economy.
Q4. Which industries benefit most from the Emotional Economy in China?
Beauty, wellness, lifestyle, food & beverages, and fashion brands benefit most, as these categories strongly connect with consumer emotions and personal identity.
Q5. How can international brands adapt to the Emotional Economy in China?
They can succeed by offering transparency, sustainable practices, and emotional storytelling while ensuring product quality and fair pricing.