In today’s fast-paced world, consumption is no longer just about meeting basic needs – it’s also become a reflection of culture, identity and personal values. For those born between 1995 and 2007, their spending habits are reshaping the market in new ways. This article takes a closer look at the evolving consumption trends among this generation, exploring how they balance value for money with emotional value, and how purchasing decisions help them express their identity, emotions, and social connections.

Part 1: Understanding the New Generation of Consumers – Where Rationality Meets Emotion

According to online sources and market reports, this generation has a unique mix of rational and emotional decision-making when it comes to consumption. They’re not just spending impulsively or blindly following trends anymore – they’re savvy shoppers who weigh their options carefully. Their consumption habits can generally be described through four key characteristics: personalisation, experiential value, social engagement, and values-driven choices.

Personalisation

Young consumers are drawn to products that reflect their personal style. Whether it’s fashion items, tech gadgets, or everyday essentials, they want their purchases to serve as a form of self-expression. Take the rare “hidden” editions of the trendy collectable IP Labubu, for example. They’ve soared in value because they tap into young consumers’ desire for uniqueness and exclusivity.

Experiential Value

This generation is also more willing to pay for high-quality experiences. Immersive shopping environments and interactive services are particularly appealing to them. For example, Meijian Green Plum Wine has won over young consumers by creating marketing campaigns that resonate with modern social lifestyles and emotions.

Social Engagement

Consumption is closely tied to social sharing. Young people often post about their purchases on social media as a way to build and maintain relationships. The “walking robot dog” performance art in Shanghai is a prime example. While it may seem a little eccentric, it has become a kind of social symbol, allowing individuals to show off their tech-savviness and social status.

Values-Driven Choices

Environmental awareness, sustainability, and social responsibility are increasingly influencing purchasing decisions. Young consumers are more likely to support brands and products that align with their personal values.

Part 2: From “Value for Money” to “Emotional Value”

In recent years, talk of “consumption downgrade” has been widespread. However, young consumers are showing a distinct logic in their spending habits. They’re still looking for products that offer good value for money, i.e. a balance between performance and price. But they’re also placing more importance on emotional value – the emotional satisfaction a product provides relative to its cost.

Market reports show that over half of young consumers consider value for money the most important factor when making purchasing decisions. Close behind are product performance, durability, and emotional impact. This suggests a blend of rational and emotional decision-making – they want products that are fairly priced, but also bring a sense of emotional fulfilment. 

This change is driven by a strong desire for self-expression and emotional satisfaction. In today’s fast-paced, high-pressure environment, consumption often serves as something of a stress reliever and a way to affirm personal identity. For example, a programmer might spend over RMB10,000 on a limited-edition snowboard – not just for its technical specs, but because it symbolises freedom, satisfaction, and the lifestyle they aspire to.

Part 3: Authenticity and Emotional Connection – Marketing Preferences of Young Consumers

To connect with this generation, brands must prioritise emotional resonance and authenticity. Having grown up surrounded by constant advertising and strong brand culture, young consumers have become desensitised to flashy campaigns and gimmicks. Instead, they are drawn to content that feels genuine and relatable.

Research suggests that over 80% of young consumers are more likely to purchase a product based on ads featuring real user experiences, and over half are influenced by product reviews from influencers or bloggers. Clearly, storytelling and showcasing authentic user cases are crucial tools in building trust and emotional bonds with young audiences.

Emerging formats like “advertising mini-dramas” are also gaining traction. These short-form ads combine compelling narratives with real product reviews, offering a fresh and highly engaging way to capture attention. As a new tool in the brand marketing toolkit, they hold great potential.

Part 4: The Rise of Interest-Based Consumption and Subculture Communities

As consumer markets become more segmented and individual needs continue to diversify, young consumers are increasingly forming communities to centre around. These communities are not only becoming more niche and fragmented, but are also starting to overlap and influence one another. From traditional culture to tech geekdom, from street fashion to silver-age wellness, a wide range of subcultures have found loyal followings among the younger generation.

For example, the “silver-age wellness” community has attracted a lot of attention by combining art therapy and intergenerational interaction to break down generational barriers, creating highly engaging content on platforms like Douyin and WeChat. Meanwhile, the “paper-cutting” community has gained steam following the successful UNESCO heritage bid for the Spring Festival, inspiring many young people to participate in creative hobbies and share their creations online.

These communities are formed around four cultural attributes: media platforms, language systems, communication spaces, and power structures. To connect in a meaningful way, brands must engage these communities with precision, using interest-driven marketing strategies.

Part 5: Policy Incentives and the Future of Youth Consumption

In recent years, the government has introduced a number of initiatives aimed at stimulating consumer spending. Shanghai’s latest action plan (“《上海市提振消费专项行动方案》”) to boost consumption includes the concept of “enriching self-pleasure consumption,” signalling a shift in policy focus from meeting basic needs to fostering emotional resonance. At the same time, Generation Z is injecting fresh vitality into the market. As digital natives, their consumption behaviour differs a lot from previous generations. They’re used to making decisions in a few clicks, favour instant gratification, and often express their identity through niche interests like designer toys and esports.

To stay relevant, brands need to continuously innovate consumer experiences, enhance product engagement, and strengthen emotional connections. Only then can they really make an impact on the youth-driven market.

Ultimately, the way young people are consuming things today is a sign of more than just market transformation. It’s also down to a shift in culture and values. From value for money to emotional value, from rational decision-making to emotional fulfilment, the new generation is redefining the future of consumption in their own way. If brands want to stand out in the increasingly competitive landscape, they need to truly understand and respond to the psychology and behaviours of this demographic.