China’s Gen Z consumers are rewriting the rules of the retail market, and businesses must pay attention. Unlike previous generations that prioritized practicality in purchases—such as real estate, vehicles, or high-status luxury items—today’s young consumers are increasingly drawn to emotional consumption. They buy not just for function but for joy, nostalgia, and self-expression.
At Hub of China, a leading market research company in China, we’ve analyzed this trend in depth. Our findings reveal that nearly 70% of Chinese Gen Z consumers make at least one emotional purchase per month. From themed merchandise and nostalgic collectibles to immersive travel experiences, these purchases are deeply rooted in emotional fulfillment.
Understanding this shift is crucial for brands aiming to stay competitive in China’s dynamic retail landscape. But why is emotional spending on the rise, and how can businesses leverage this trend?
Why Emotional Spending is Growing in China’s Gen Z Market
Several key factors are fueling the rise of emotional spending in China’s younger demographic. As a top market research agency in China, we’ve identified three primary drivers:
1. The Stress of Modern Life
China’s fast-paced economy comes with a high-pressure lifestyle, particularly in major cities like Beijing, Shanghai, and Shenzhen. Young professionals face intense competition, long working hours, and high costs of living, making small pleasure-driven purchases a common coping mechanism. Instead of investing in long-term financial commitments like homeownership, many young consumers turn to experiential spending—such as theme park visits, interactive shopping experiences, and gourmet dining—to unwind.
2. The Power of Nostalgia
Nostalgia is a powerful emotional trigger, and Chinese Gen Z consumers are drawn to childhood-inspired products and experiences. Our market research in China indicates a surge in demand for items like blind box collectibles, plush toys, and retro-style snacks. Brands tapping into this sentiment—such as White Rabbit candy with its nostalgic branding—see immense success.
3. The Influence of Social Media and KOLs
Social media platforms like Xiaohongshu, Douyin, and WeChat Channels have transformed shopping into a social and emotional experience. Seeing influencers and friends share their purchases fuels FOMO (Fear of Missing Out), reinforcing emotional buying behavior. The ability to showcase purchases in a way that aligns with personal identity makes Gen Z even more inclined to spend on products that offer social validation.
Case Study
Theme Park Merchandise and Emotional Consumption
A prime example of emotional spending in action is the surge in theme park merchandise sales in China. At Universal Beijing Resort, for instance, Minion-themed blind boxes and Harry Potter collectibles have become best-sellers—not because they’re necessities, but because they spark joy and nostalgia. Similarly, Shanghai Disney Resort’s Zootopia-themed merchandise has become a must-have for visitors seeking an emotional connection to their experience.
These purchases are not about functionality; they’re about reliving a moment, celebrating an experience, and owning a tangible piece of happiness. Brands that understand this dynamic can craft compelling product lines that drive repeat purchases and long-term loyalty.
How Brands Can Capitalize on Emotional Spending Trends
For businesses looking to succeed in China’s evolving consumer landscape, tapping into the emotional consumption trend is essential. As one of the top market research companies in China, we recommend the following strategies:
1. Create Limited-Edition, Collectible Products
- Limited-time collaborations and exclusive designs heighten urgency and emotional attachment.
- Example: Starbucks China frequently sells out of seasonal merchandise within hours by leveraging fandom culture and exclusivity.
2. Transform Shopping into an Experience
- Experiential marketing, interactive in-store events, and immersive digital campaigns increase emotional engagement.
- Example: LEGO China’s in-person building events provide consumers with an opportunity to connect emotionally with the brand.
3. Leverage Nostalgia Marketing
- Reintroducing classic flavors, designs, and characters resonates deeply with Gen Z’s desire for familiarity.
- Example: White Rabbit candy’s brand revival through modern collaborations has positioned it as a beloved staple among young consumers.
4. Utilize Social Media and KOL Marketing
- Influencer partnerships, unboxing videos, and viral challenges create emotional appeal and enhance FOMO-driven purchases.
- Example: Xiaohongshu influencers regularly promote beauty and fashion products, influencing thousands of impulse purchases.
Conducting Market Research in China
For international brands looking to enter or expand in China, partnering with a market research firm in China is crucial. Understanding consumer behavior, preferences, and spending patterns helps businesses tailor their products and marketing strategies for maximum engagement and sales growth.
At Hub of China, we specialize in:
- Focus groups in China to gain in-depth insights into Gen Z’s motivations.
- Surveys and data analysis to identify emotional spending triggers.
- Competitor benchmarking to determine successful engagement strategies.
- Trend forecasting to help brands stay ahead of consumer shifts.
As a leading market research agency in China, we provide actionable strategies that help businesses connect with the new generation of Chinese consumers.
Final Thoughts
Emotional consumption is not a short-lived trend—it’s a major shift in how China’s Gen Z approaches spending. This generation values joy, comfort, and self-expression, and brands that recognize this will secure long-term loyalty and success.
In an era where digital interactions are fast-paced and often overwhelming, small moments of happiness—through nostalgic purchases, immersive experiences, and socially validated products—hold real value. Companies that can authentically engage with these emotions will dominate China’s retail market.
For businesses looking to succeed, partnering with a top market research company in China ensures that their strategies align with emerging consumer behaviors and market trends. At Hub of China, we help brands navigate the complexities of the Chinese market, delivering insights that drive meaningful connections with today’s emotionally-driven consumers.
Need expert guidance on emotional spending trends and Chinese market insights? Partner with Hub of China, the leading market research agency in China, to craft strategies that resonate with Gen Z consumers and maximize your market potential.