China's 'goods economy' is driving growth

Editor's note: Xin Ping is a commentator on international affairs, writing regularly for Xinhua News Agency, CGTN, Global Times, China Daily, etc. The article reflects the author's views and not necessarily those of CGTN.

"Buy goods for good moods" recently became a new lifestyle slogan for Gen Z and Millennials in China.

"Guzi," a transliteration of "goods," refers to spin-off products tied to anime, comics, games, novels, and cosplay (ACGNC). The vast assortment of "goods" ranges from affordable items such as badges, posters, and trading cards to higher-priced model figures and stuffed plush toys.

The burgeoning "goods economy" speaks volumes about the huge potential of new economic drivers in the Chinese market and the younger generation's preference for products that play to their interests. The innovative goods have also reshaped the global perception of "made in China" products.

Emotional investment

Some may find it difficult to understand why "goods" are so addictive to many. A goods buyer could be a teenage boy whose bedroom is packed with mini figures of Nezha, a beloved figure in Chinese mythology known for his adventurous spirit and rebellious nature, or a thirty-something office worker who splurges hundreds of yuan on such products monthly and calls it an "emotional investment."

For many young Chinese, visiting "guzi" stores is not just a weekend date with best friends; it's therapy. The adorable and playful collectibles offer emotional soothing and open wallets.

"Eating guzi" or the act of purchasing goods like Labubu is not just about buying toys, but also a way to provide oneself with emotional value. Buying goods offers a delightful mix of mystery, storytelling, and fun. For example, you never know what will come up next when you open a new "blind box" toy. Will it be a hidden edition this time? What's the story behind these characters and their connections with each other?

Tiny goods, huge impact

Labubu, a doll with pointed ears and serrated teeth, has become a top seller in "guzi" stores. The character was created by Hong Kong artist Kasing Lung and has won the hearts of many fans with its cute face and slightly naughty grin.

Thanks to the "goods" buying frenzy, Labubu dolls have sparked a consumer craze across China and later throughout Asia, fueled by social media posts from K-pop singers. Every new release and restock of Labubu toys sell out like hotcakes, sometimes within minutes, and limited editions of Labubu figures are flipped on resale platforms for multiples of their original price.

The "goods economy" was probably one of the biggest surprises on China's consumer landscape in 2024. This sector might look lightweight, but it's generating heavyweight numbers. The trillion-yuan industry is expected to continue surging going forward. Pop Mart, the Chinese toymaker and a leading player, reported annual sales growth of 107 percent in 2024.

From "Made in China" to "Created in China"

Labubu and other popular "goods" are helping redefine the global perception of "made in China" products. Instead of being seen as cheap plastic gadgets, the toys are gaining global popularity for their unique designs, creativity, and individuality.

Thanks to Labubu's global success, China is no longer seen as a manufacturing powerhouse churning out cheap plastic goods, fast fashion, or mass-produced electronics, but a locomotive of innovative, personalized, and niche consumer goods.

The rise of the "goods economy" also signals a preference shift from quantity to quality among global consumers, especially the young. More and more buyers now seek to find emotional value from their purchases, not in the luxury sense, but in the experience sense. Chinese-made products are becoming expressions of trend, taste, and identity. People now buy Chinese goods not just because they're cheap, but because they're cool, fun, and surprisingly good.

At its core, the "goods economy" is China's answer to the hyper-personalized and highly innovative demand of global consumers. The global appetite for "guzi"-style consumer goods has exploded. This agile, internet-sensitive, and constantly evolving sector will grow stronger and hold the key to future economic growth.

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