Understanding emotional consumption in China: A Lunar New Year perspective

Planes, trains, and automobiles are once again crisscrossing China as the world's largest annual human migration takes place. A record 9 billion trips are expected to take place this Lunar New Year. Millions of Chinese people will return to their hometowns to reunite with family, enjoy festive feasts, exchange gifts, and watch the much-anticipated Gala.

However, not everyone looks forward to these age-old celebrations. For China’s hundreds of millions of singles, family reunions often come with uncomfortable interrogations from older generations about the absence of a potential spouse – a tradition humorously mocked in countless advertisements. Yet, this year’s Spring Festival may spark conversations on a different topic – mental health – a subject long considered taboo in China.

Earlier this month, Chinese actress Zhao Lusi publicly revealed to her tens of millions of social media followers that she had been struggling with depression for years. Before the pandemic, discussing mental health openly was rare, as it was often seen as losing face for oneself and one’s family. Zhao’s brave disclosure marks a significant cultural shift, reflecting a growing acceptance of mental health awareness among Chinese youth.

The Rise of Emotional Consumption

China’s younger generation is not only acknowledging mental health challenges but also addressing them through “guzi” goods – products that cater to emotional consumption. Items such as collectible figurines and plush toys, designed to lift spirits, have become increasingly popular. In fact, emotional consumption was one of the standout retail categories of 2024, and this trend shows no signs of slowing in 2025. It’s likely that many of these mood-boosting items will be exchanged as gifts during the Lunar New Year celebrations.

Retailers selling guzi goods, such as Minisoland, have seen remarkable success, with long queues being a common sight. Collaborations with brands like Popmart and Jellycat have resonated deeply with consumers. A recent McKinsey survey revealed that 64% of Chinese consumers now prioritize emotional consumption, with the percentage skewing higher among younger demographics.

However, true emotional consumption goes beyond collectable toys. More than ever, Chinese consumers are seeking brands that authentically connect with their emotions – brands that acknowledge their challenges and aim to improve their mood. This is particularly relevant as transactional communication, accelerated by AI, becomes increasingly pervasive.

From Emotional to Fulfilling Consumption

Another Covid-era trend closely tied to emotional-related purchases is “yueji” consumption, where people spend on what brings them joy and fulfilment rather than material possessions. While guzi goods are a part of this trend, hobbies also play a significant role. Whether it’s skiing, specialty coffee, or niche crafts, hobbies have become some of the fastest-growing consumer categories in China over the past 12 months. They provide passion, happiness, and fulfilment – qualities that increasingly consumers prioritise.

For brands, the yueji trend offers an opportunity to connect with your target audience at a deeper emotional level. By recognizing these interests in communication strategies or aligning through collaborations, partnerships, and interest-specific products, brands can build stronger emotional connections with their audience.

Peeling Back the Layers of Emotional Connection

To truly resonate with Chinese consumers, brands must “peel back the onion” and understand their emotional layers. This means uncovering their pain points, challenges, sources of pleasure, and pathways to fulfilment. A deep understanding of these emotional drivers can inform relatable strategies, ensuring that investments in products and marketing yield better returns.

As we step into the Year of the Snake, it would be wise to reflect on how to build meaningful connections with Chinese consumers. By tapping into emotional and fulfilling consumption trends, brands can secure a stronger foothold in this dynamic market.

Contact us to explore how we can help optimize your strategy and ensure success in the year ahead. Wishing you a happy and prosperous Lunar New Year!