Young Chinese are spending smarter and redefining consumption

A woman makes a bracelet at a DIY (Do-It-Yourself) workshop in Shanghai on April 26 (XINHUA)

Not long ago, a typical night out for young Chinese might have meant singing karaoke with friends or squeezing into a packed movie theater. Today, the vibes have changed.

Now, you’re more likely to find them strolling through parks, joining a city walk, rolling out yoga mats on rooftops or binge-watching the latest hit drama series at home.

According to the Report on Leisure Development in China, released by the China Tourism Academy last year, interest in low-key, mindful activities—such as park strolls, city walks and yoga—has soared, with some growing by over 200 percent in popularity compared to three years ago. In contrast, traditional entertainment venues like karaoke bars, nightclubs and cinemas have seen a sharp decline in popularity.

This tradeoff between the serene and the sensory, the personal and the performative, reflects more than just changing weekend plans. Whether it’s a growing preference for value-for-money choices, a desire for emotional satisfaction or a broader rethink of what it means to spend wisely, it all signals a deeper redefinition of consumption among young people in China.

Value for money

More and more young consumers in China are turning to “budget alternatives” or pingti in Chinese. These options refer to affordable products that offer similar style and quality as high-end brands but at a fraction of the cost. This shift indicates a growing young desire to get the best bang for that buck.

Fast fashion brands like Japan’s Uniqlo and Spain’s ZARA are meeting this demand by collaborating with well-known designers to bring stylish yet affordable options to the market.

Fashion analyst Xiao Tang told Xinhua News Agency that independent designers are also contributing fresh aesthetics to high-street brands, attracting a lot of attention from younger buyers. These partnerships not only boost short-term sales but also help build stronger brand loyalty over time.

At the same time, many young shoppers are replacing traditional in-store payments with group-buying deals online. For example, Pang Ruxin, a young professional from Lanzhou in Gansu Province, always checks multiple group-buying platforms before dining out. She finds combo meals through these deals that often save her tens, or even hundreds, of yuan (a few to tens of U.S. dollars) compared to paying full price.

“I compare offers on different apps and sometimes stockpile coupons when the discounts are really good,” Pang told newspaper Gansu Daily. She also relies on social media reviews to avoid wasting money on poor service or low-quality products.

This practical approach to spending is swiftly gaining traction. According to the 2024 China Youth Consumption Trend Report released by newspaper The Beijing News last July, 41 percent of young shoppers frequently compare prices, and nearly 20 percent do so before every purchase, moving between online and brick-and-mortar stores to find the best deals.

But value doesn’t always mean choosing the cheapest option. Nearly 39 percent of respondents say they sometimes pick lower-priced goods but also consider quality, brand and other factors when making their final decision.

Rational spending has become a defining trait of today’s youth. Yang Guang, an associate professor at the School of Economics at Nankai University in Tianjin, told newspaper Guangming Daily.

“Buy what’s right, not just what’s expensive,” once seen as the older generations’ motto, is becoming a mainstream principle among younger shoppers. More of them are no longer willing to pay a premium simply for brand names, showing growing trust in affordable, high-quality brands, especially domestic ones.

A visitor takes a closer look at a designer toy at an art festival in Beijing on September 7, 2024 (XINHUA)

Feel-good spending

It’s hard to miss the mischievous grin of Labubu, the quirky forest creature from The Monsters story series that has captured the hearts of countless young Chinese consumers. More than just a collectible, the toy produced by Chinese company POP MART has come to symbolize a broader trend. Netizens often call it “digital Ibuprofen” on social media, a nod to its power to lift spirits and relieve emotional stress, much like a virtual painkiller.

According to the consumption trend report, nearly 30 percent of young Chinese adults are willing to spend on things that bring them joy. In their fast-paced lives filled with pressure and anxiety, so-called digital Ibuprofen that covers everything from collectible toys and scented candles to squishy stress balls and therapeutic stickers has become a popular way to unwind and find comfort.

Zhang Mishu, an English teacher working in Shanghai, first stumbled upon Labubu through lifestyle and e-commerce app RedNote, where she saw posts of fans unpacking blind boxes, swapping figurines and dressing them up. “I was instantly hooked,” she told Beijing Review.

In just two weeks, she had bought seven. “Each one made me happy for a couple of days,” she said, adding that she’s now on a mission to find the same Labubu model owned by her favorite celebrity, Chinese singer Jackson Wang.

To Zhang, collecting Labubu figurines offers more than just a fleeting thrill. It brings creativity, and even social value. “Now, when I meet up with friends, I sometimes bring a Labubu blind box as a gift. It’s just a few dozen yuan (a few U.S. dollars), but it lifts the spirits. So why not?” she said.

According to iiMedia Research, a Chinese data analysis agency, in 2024, self-pleasing consumption ranked as the second most common type of spending among China’s youth, just behind daily necessities. The proportions were strikingly close, 46.28 percent for self-pleasure and 46.6 percent for daily needs.

Han Xudong, an associate research fellow at the School of Public Administration at Sichuan University, told newspaper Guangming Daily that today’s youth are increasingly willing to pay a premium for emotional value. In their eyes, emotional satisfaction often matters more than traditional functionality. It’s driven by emotional resonance, social interaction and psychological fulfillment, often outweighing practical considerations.

This trend has fueled the rise of products and services that center on emotional appeal, such as stress-relief toys, therapeutic services and houseplants, all acquired in pursuit of small, meaningful joy, he said.

Behind the consumption

Today’s young Chinese are coming of age in a vastly different world than their parents, Yang said. Having grown up amid decades of rapid economic expansion, accelerated urbanization and the rise of the Internet, this “generation of abundance” are more educated, more exposed to global trends and naturally more inclined to pursue better living experiences, he explained.

This backdrop helps explain the growing young emphasis on quality, personalization and self-expression in their purchases. But it’s not just about taste—it’s also about timing. According to Han, China’s evolving economic landscape is offering young consumers more diverse options than ever before.

“Digitalization has completely transformed the way young people shop. From AI-driven recommendations to immersive shopping experiences powered by augmented reality technology, technology is making information more transparent, consumption more efficient and decision-making far more personalized,” Han said.

This younger generation is emerging as a vital link between China’s traditional industries and its emerging sectors, according to Han. “Youth consumption plays a dual role—it stimulates the rapid development of services, culture and tech-related industries, while also feeding back into the supply side, driving the transformation and upgrading of traditional sectors,” he explained, adding that the growing enthusiasm for homegrown brands among young consumers has already led to the rise of several once-obscure domestic names.

That makes catering to youth consumption trends not just an opportunity—but a strategic priority. “We need to push forward both technological and service innovation to truly meet the young demand,” Yang concluded. –The Daily Mail-Beijing Review news exchange item