China’s Gen Z seeks solace through ‘emotional consumption’
Young consumers’ willingness to spend on blind box toys contrasts with wider retail gloom
When Beijing-based Pop Mart estimated its third-quarter revenue surged by 120 to 125 per cent in a business update released on Wednesday, analysts said the performance of China’s leading blind box toy retailer had “far exceeded market expectations”.
The brand, a rare consumption bright spot amid China’s ongoing spending gloom, has millions of young fans who may not earn a lot but are generous spenders on small toys that offer them emotional and social value.
China’s Generation Z, roughly 280 million strong and born between 1996 and 2012, is powering an “emotional consumption” trend that contrasts with a broader slowdown in the world’s second-largest economy.
Young Chinese consumers are increasingly willing to spend money on items that may seem “useless” and expensive, but bring them joy or enhance their mood, some analysts said.
“They have high emotional needs as they live and work at a fast pace and under high pressure,” said Mo Daiqing, a senior analyst at the Hangzhou-based China E-Commerce Research Centre.
Products like blind box toys, quirky accessories and decorative items have become highly sought after by young people. Such items, often not necessarily functional, serve as sources of comfort, entertainment or self-expression.