Core Insights - The rise of the emotional economy is a significant trend in China's consumer market, driven by a shift from material needs to emotional fulfillment as basic needs are met [4][7] - The emotional consumption market in China is projected to exceed 800 billion in 2024, with an annual growth rate of 25%, potentially surpassing 2 trillion by 2025 [4][5] Group 1: Market Dynamics - The emotional economy is characterized by the emergence of seemingly "useless" products that carry high emotional value, such as stress-relief toys and collectible blind boxes, which have seen substantial sales growth [5][6] - The service sector is witnessing a boom in experiential emotional offerings, including paid study rooms and emotional support services, with the ice and snow leisure tourism expected to generate over 630 billion in revenue in the 2024-2025 season [5][6] - Digital consumption is also on the rise, with AI companionship services and virtual emotional support gaining popularity, reflecting a significant increase in demand among younger consumers [6][7] Group 2: Consumer Behavior - The Z generation, comprising 260 million individuals, accounts for over 40% of total consumption, with a significant portion directed towards products that provide emotional value [4][5] - Consumers are increasingly viewing purchases as a means of self-expression and emotional satisfaction, leading to a shift in consumption logic [4][5] Group 3: Business Implications - Companies are adapting their product designs to incorporate both functionality and emotional appeal, as seen in successful cultural products and innovative marketing strategies that resonate emotionally with consumers [6][7] - The emotional economy is creating new job roles, such as emotional designers and digital therapists, while also revitalizing traditional retail spaces through thematic transformations [6][7] Group 4: Regulatory Considerations - The emotional economy faces unique challenges, including the lack of regulatory oversight for virtual services, which can lead to potential harm and exploitation [7][8] - There is a pressing need for regulatory frameworks to ensure ethical practices in the emotional economy, balancing consumer protection with the growth of this emerging market [7][8]

Core Insights - The report indicates that nearly 60% of young people are willing to pay for emotional value, reflecting a significant shift in consumer behavior towards "emotional consumption" as a new lifestyle and focus in the market [2][3] Group 1: Consumer Behavior - 56.3% of youth choose to engage in "happy consumption" for emotional value or interests, marking a 16.2 percentage point increase compared to 2024 [2] - 44.8% of young people are focused on "quality upgrades," indicating a desire for better experiences driven by emotional needs rather than blind self-indulgence [2] - The average monthly expenditure on emotional consumption among youth is 949 yuan, with 18.1% willing to spend over 2000 yuan monthly [3] Group 2: Motivations and Trends - Core motivations for emotional consumption include emotional tuning and understanding, with significant gender differences: 52.6% of women prioritize happiness and relaxation compared to 42.1% of men [3] - Over 20% of youth are classified as "active emotional consumers," with 43.4% engaging in emotional purchases multiple times a week [3] - Emotional consumption is characterized by three main trends: seeking emotional healing and stress relief, obtaining immediate satisfaction and emotional companionship, and expressing identity within subcultural circles [3] Group 3: Societal Context - The Shanghai Youth Research Center highlights the emotional belonging crisis faced by youth, exacerbated by urbanization and weakened traditional connections [4] - As real-life social interactions fail to provide stable emotional support, youth turn to consumption as a substitute, leading to the notion that "consumption equals companionship" [4] - Promoting rational consumption, enhancing psychological adjustment methods, and building diverse social networks are essential for maintaining the long-term emotional health of youth [4]