Key Takeaways:
China’s Gen Z consumers are redefining the role of shopping in their lives, turning increasingly to retail therapy, blind-box collectibles, and even artificial intelligence companions as tools for improving emotional well-being. A new report by social platform Soul and the Shanghai Youth Research Center highlights the rise of “emotional value” as a central driver of consumption among the cohort born after 1995.
The study found that more than 90% of Soul users in this age group prioritize emotional value, defined as the sense of belonging, recognition, and care gained from relationships, products, or services. Spending tied to emotional needs jumped 16.2% year-over-year (YoY), underlining how consumption is no longer just about material satisfaction, but also about addressing deeper psychological and social voids.
Nearly 80% of respondents said emotional value comes from understanding and responsiveness in intimate relationships, with over half citing social interactions. About 48% described emotional value as a remedy for stress and anxiety, while 43.1% said it made them feel seen and needed. Almost a third said it was a source of motivation and resilience in navigating daily life.
This pursuit of “emotional value” is reflected in consumption choices. Men make up 55.9% of Soul users engaging in retail therapy, often choosing products tied to identity, status, or conversation value. Women, who represent 44.1%, are more likely to spend on personal indulgences and self-care.
The report revealed that Gen Z Soul users spend an average of 949 yuan ($133) per month on retail therapy. Interestingly, those earning less than 5,000 yuan in monthly disposable income show the strongest demand, suggesting that emotional consumption may rise inversely with income levels. For brands, this signals that affordability and symbolic resonance may be more influential than luxury positioning when appealing to China’s young consumers.
The report framed these trends against broader social headwinds. Rapid urbanization has diluted traditional bonds of kinship and geography, weakening the sense of community and trust. As one line in the report put it, for many young Chinese, “The more you grow up, the lonelier it gets.”
In this vacuum, consumerism is increasingly being positioned as a substitute for companionship. “When real-world social interactions fail to provide stable emotional support, young people turn to consumerism, seeking emotional substitutes … giving them the idea that ‘consumption equals companionship,’” the authors noted in the report.
For consumer brands, the rise of emotional value is causing a need to rethink product positioning. Beyond functionality, purchases are being judged on their ability to provide comfort, belonging, or self-expression. From blind-box collectibles to AI-driven “digital companions,” the market is primed for offerings that promise not just utility, but emotional resonance.
This study, however, also struck a cautionary note. The Shanghai Youth Research Center called for moderation in spending, stronger coping mechanisms, and collective efforts to rebuild diverse social networks. Left unchecked, overreliance on retail therapy may exacerbate the very issues it seeks to ease.
