August 25, 2025
China’s Gen Z is Building an Emotional Economy
According to a new report by China.org.cn, 64% of Chinese consumers say they buy for emotional fulfilment rather than just practicality, and the generation leading the charge is Gen Z. Although they make up just over 15% of China’s population, their influence on the marketplace is huge, sparking what analysts now call an “emotional economy.”
Unlike older generations who chased status symbols or sheer material gain, Gen Z shoppers are investing in happiness, wellness, and even cultural pride. Think premium skincare for self-care nights, yoga memberships that double as social hubs, or limited-edition collectables that spark joy without overflowing closets. This is spending with heart and purpose.
The Ripple Effect
Brands that catch on – like Pop Mart with its wildly popular blind boxes or Lululemon with its “sweat + community” formula – are reaping major rewards. Lululemon, for example, reported a 21% jump in same-store sales in China, thanks to young buyers who see fitness as both lifestyle and identity.
Gen Z’s shopping cart isn’t just about feeling good in the moment, but about shaping the future. According to Daxue Consulting, 40% of Chinese consumers now prefer eco-friendly products, with a massive 90% of Gen Z actively looking for recyclable goods. For them, sustainability isn’t a trend, but a requirement. This new consumer power is nudging companies toward greener, more transparent business practices.
What Makes This Different?
- Purchases often mix practical utility with emotional value.
- Spending reflects cultural storytelling and heritage pride rather than mindless luxury.
- Social media platforms like Douyin and Taobao aren’t just sales funnels—they’re trust-building ecosystems where transparency wins.
This has become the latest economic model. By prioritising wellness, authenticity, and sustainability, Gen Z is fuelling growth in ways that benefit society as a whole. For investors and brands, that means shifting from chasing luxury margins to investing in youth-driven, socially responsible markets.
China’s Gen Z is showing the world that shopping for joy and shopping responsibly can go hand-in-hand, and in doing so, they’re not just reshaping consumer habits; they’re reinforcing China’s role as a global economic leader.
