Source: People’s Republic of China – State Council News
Consumers select blind boxes at a Pop Mart store in Xidan Joy City, a shopping mall in Beijing, capital of China, Dec. 28, 2024. [Photo/Xinhua]
For Chen Qiwei, a financial analyst from the southern metropolis of Shenzhen, most of her precious leisure time after long, grueling workdays is spent with her daughter in various Pop Mart stores, a popular toy chain known for fueling the blind box craze and beloved for its signature Labubu toy line.
“My daughter and I love wandering through Pop Mart, digging through those fun blind boxes and picking out whatever catches our eye. It’s our happy little escape,” Chen said.
“A monthly splurge of a couple thousand yuan (about 139 to 278 U.S. dollars) on these collectibles feels like a worthwhile investment in our emotional well-being,” she added, having just scored a mint-condition Labubu doll — at a hefty markup — on the secondhand marketplace app Xianyu.
Chen and her daughter are part of the growing wave of Chinese consumers powering the rise of the “Guzi” economy, a catchall term derived from a phonetic pun on the word “goods” in Chinese that refers to spin-off merchandise linked to the worlds of anime, music and gaming.
Walk into any urban mall across China today, one will discover that “Guzi” has become increasingly accessible as there is no shortage of stores selling everything from themed collectibles to quirky stress-relief plush toys and whimsically-named desk plants.
According to Aiqicha, a Chinese corporate information search engine, over 10,000 enterprises specialized in “stress relief” have popped up over the past five years, with more than a third registered in the past year.
For many, buying “Guzi” is much more than a simple transaction. It is an act steeped in emotional resonance, fostering a sense of belonging that transcends materialistic fulfillment or fandom.
“These items make me feel connected to a community,” said a middle school student surnamed Wu from Guilin, south China’s Guangxi Zhuang Autonomous Region, as he clutched a long-coveted limited-edition anime figurine from a recent Comic Con. “The thrill of scoring one of these is far greater than acing a school test.”
In recent years, the “Guzi” economy has risen to the forefront of the consumer market, marking a profound shift in how a new generation of buyers chooses to spend, not just on products, but on passion and identity.
According to a 2024 report by market research firm iiMedia Research, the market value for “Guzi” in China skyrocketed with a whopping 40.63 percent annual growth in 2024, reaching 168.9 billion yuan, and it is projected to continue on its high-growth trajectory, hitting 300 billion yuan in 2029.
Fueled by a quest for comfort, connection and sometimes even emotional fulfillment, young Chinese are driving up the demand for products and services that are instrumental to smooth the rough edges of modern life.
“These products may seem jejune and odd in the eyes of the older generation,” said Dang Qiong, associate professor of journalism at Guangxi University. “But they often serve a deeper and more meaningful purpose, offering quick emotional resets in a high-pressure society, be it a young professional scrambling his way up the greasy pole or a student trying to work his way into a good college.”
Some experts attribute this emerging consumer trend to the rise of “kidulting,” a cultural phenomenon in which adults embrace playful, youthful behaviors and products as part of their emotional support.
Dang sees the idea of adults seeking experiences by acting like children as a healthy coping mechanism for an increasing number of people, especially Gen Z and millennials, navigating economic uncertainties and societal pressures.
“Buying cute and playful stuff or engaging with whimsical behaviors helps build up my emotional resilience,” said Li Xin, a middle school teacher from Nanning, capital of Guangxi. “It’s a welcoming break from the repetitive and often mundane daily routine and an effective way to reclaim joy.”
As the physical products continue to gain traction, digital solutions have also been playing an increasingly pivotal role in shaping the burgeoning “Guzi” economy.
AI-powered virtual companions, mostly digital platforms, are able to engage with users with empathetic responses and help process their emotions in real time, said Zhang Yuqiang, a founder of a Guangxi-based AI service company.
The use of advanced algorithms to offer customized interactions allows such virtual “companions” to act as a digital “tree hole,” a Chinese internet buzzword for a safe space to relax and confide, for those who may feel cagey about sharing their vulnerabilities with friends or family, Zhang said.
According to tech consultancy analysis, China’s AI companionship market is estimated to scale from the current size of over 3.86 billion yuan to more than 59.5 billion yuan in 2028, with a compound annual growth rate of 148.74 percent.
However, some experts have cautioned against over-reliance on AI for emotional needs and connections.
While forming a relationship with AI is likely to become commonplace soon, noted Zeng Runxi, vice dean of the school of journalism at Chongqing University. “But the users of such products should always maintain their cognitive and emotional autonomy, even when engaging with AI.”
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