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China's Gen Z seeks emotional value in purchases

chinadaily.com.cn | Updated: 2024-10-30 15:16
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A man and a woman check a blind box in front of a Pop Mart vending machine in Shanghai on Dec 23, 2020. [Photo/IC]

China's Generation Z consumers have become increasingly drawn to purchases that offer emotional value, such as the popular blind box toys, South China Morning Post reported on Sunday.

In a recent business update, China's trendy toy retailer Pop Mart reported an impressive estimated revenue growth of 120 to 125 percent for the third quarter, a figure that analysts say "far exceeded market expectations." The company's popularity highlights the massive appeal for blind box collectibles, which resonates with millions of young fans across China.

China's Gen Z's—totaling around 280 million and born between 1996 and 2012—stands out as a potent demographic that fuels this popular trend. Analysts observe that these consumers are increasingly inclined to invest in items of little practical value but hugely contribute to their emotional well-being.

In May, the China Consumers Association published its "2023 Annual Report on Consumer Rights Protection," indicating that in 2024, beyond mere cost-effectiveness, emotional value will continue to influence young consumers' decisions, said an early report by Economic Daily. This factor could become a new point of consumption in the future.

"They have high emotional needs as they live and work at a fast pace and under high pressure," said the report, quoting Mo Daiqing, a senior analyst at the China E-Commerce Research Centre.

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