Focused Consumption on Niche Brands and Hobbies
Boosting Domestic Demand Amid Economic Slowdown
In China, the so-called Generation Z (those born between 1995 and 2010) is emerging as a leading force in driving the economy through consumption. Analysts note that their "self-satisfying consumption," in which they spare no expense on products that interest them, is contributing to the revitalization of domestic demand.
Overseas famous celebrities and stars such as BLACKPINK's Lisa and Rose, and pop star Rihanna have been seen enjoying Pop Mart's main character Labubu dolls, attracting consumer interest. Instagram capture
On May 15 (local time), Bloomberg highlighted the consumption habits of China's Generation Z, reporting, "Brands that reflect their preferences are showing a clear upward trend in both performance and stock prices."
Representative examples include Pop Mart, a toy manufacturer listed on the Hong Kong Stock Exchange; Laopu Gold, a traditional gold jewelry brand; and Mixue, a beverage chain. These companies have recently seen sharp double-digit increases in both sales and stock prices.
Pop Mart's flagship product is a "random box," which contains high-end figures designed by globally renowned designers and is sold without revealing the contents in advance. Until the end of last year, Pop Mart's corporate value lagged behind global toy companies such as Mattel, the maker of Barbie dolls, and Hasbro, the maker of My Little Pony. However, it now surpasses the combined value of both companies.
Jewelry company Laopu Gold has benefited from the retro craze, as its traditional Chinese-style gold craftsmanship has become popular. Notably, since its listing last year, Laopu Gold's stock price has soared by 184% just this year.
In contrast, companies that primarily target older generations as their main customers, such as premium liquor producer Kweichow Moutai and home appliance company Haier, are struggling.
China's Generation Z is estimated to number 250 million. They tend to drink less alcohol, show little interest in traditional assets such as housing or real estate, and focus on niche brands or hobbies that their parents' generation does not understand, displaying what is referred to as "emotional consumption." Popular items include K-pop celebrity merchandise, figures, niche perfumes, cosmetics, and traditional jewelry.
Li Seochang, a fund manager at Shenzhen JM Investment, stated, "Generation Z consumes for sensory pleasure or emotional reasons, and spends money on things that the older generation considers unnecessary." One consumer in their 30s remarked, "If I had invested as much money in Pop Mart's stock as I spent on their dolls, I would be rich now."
Bloomberg explained, "Emotional consumption has become such a phenomenon that it warrants separate analysis, and this trend is in stark contrast to the overall economic downturn in China." The report also noted, "It is contributing to boosting domestic consumption and stimulating domestic demand, which are the top priorities of the Chinese government's economic policy."
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