economy
Not just buying 'things': Why China's emotional economy is on the rise
Amid a prolonged economic slowdown, one segment of the world's second-largest economy is growing quicker than the rest: China's so-called emotional economy.
TL;DR
- Chinese consumers are increasingly prioritizing emotional connection and self-indulgence over practicality in their purchases.
- This shift is observed in spending patterns during holidays, with less on traditional staples and more on experiences like travel and cosmetics.
- Analysts are divided on the primary drivers: some point to stress from rising living costs and loneliness, while others highlight increased affluence and family financial support for younger generations.
- China's emotional economy is projected to significantly grow, with estimates suggesting it could exceed $655 billion by 2029.
- Local governments and businesses are recognizing and seeking to capitalize on this trend, with some cities highlighting the emotional economy's role in their development reports.