Key facts
- Young Chinese consumers are increasingly prioritizing "emotional consumption," favoring items that evoke feelings over status symbols.
- Collectible toys like Pop Mart's Labubu figures have generated substantial revenue and boosted the company's stock.
- Humanoid robots have been deployed in Hangzhou, China, as part of a "robot police squadron" to direct traffic.
- The designer-toy market in China is expected to exceed 110 billion yuan this year, with annual growth around 20%.
- This shift in consumer behavior is linked to economic uncertainties, including stagnant wages and a troubled property market.
Young Chinese consumers are increasingly prioritizing "emotional consumption," spending on items that evoke feelings rather than traditional status symbols. This trend is exemplified by the massive popularity of collectible toys like Labubu figures from Beijing-based Pop Mart, which generated approximately $4 billion in revenue in 2025 and drove the company's stock up over 125% in a single year. Celebrities such as Rihanna, Dua Lipa, and Naomi Osaka have been seen with customized versions of the "ugly-cute" elf.
Concurrently, China is showcasing its technological ambitions. In Hangzhou, humanoid robots were deployed to direct traffic during the Labor Day holiday, forming what officials called the country's first organized "robot police squadron." These machines flagged jaywalkers, gave directions, and issued warnings, logging 12,000 warnings in three days and drawing crowds.
Experts suggest this shift towards emotional consumption is a response to economic pressures, including stagnant wages, a collapsed property market, and future uncertainty. Consumers like 24-year-old Shanghai resident Lin Yuanwen are spending significant amounts on blind boxes, valuing the surprise and emotional hit over the toy itself. Fan Xinyu, an economics professor, notes that emotional value is increasingly shaping purchasing decisions, sometimes outweighing practical function. Pop Mart has capitalized on this by developing other intellectual properties like Crybaby and Skullpanda, each built around emotional narratives. The designer-toy market in China is expected to surpass 110 billion yuan by the end of the year, growing at approximately 20% annually.