Facing fierce competition at school and in the workplace, as well as an uncertain future amid a sluggish economy, China’s Generation Z consumers have come to see plush toy animals and artificial intelligence companions as essentials.
More than 90 per cent of Chinese consumers born after 1995 recognise the importance of emotional value and seek it in their spending, on everything from plush toys and concerts to physical or virtual companions, according to a recent report by the social media platform Soul App and the Shanghai Youth Research Centre.
The Labubu line of plush toys became explosively popular on the platform in the second quarter of this year, with posts about it increasing by 31.33 times and searches 26.44 times compared to the same period last year. During the same quarter, posts about AI companions surged by 1,894 times year-on-year, and searches on the same topic soared 225,056 times.
Beyond buying physical products like Labubu and scented candles, or experiences like concert tickets or counselling sessions, many Gen Z consumers also pay for companions to go with them when hiking, visiting Disneyland or playing computer games, as well as spending money on virtual pets and lovers.
While one-third shopped for emotional value when they were happy, nearly half did so when they felt unhappy, stressed, under pressure, or lonely, the report said.
Further, 46.8 per cent of Chinese Gen Z consumers believed emotional value was “a good remedy for relieving stress and anxiety,” and 32 per cent saw it as “a driving force in life and a way to keep going”.
