In today's consumer landscape, young people are redefining spending habits. They are not just buying products; they are investing in experiences, quality, and personal satisfaction. This shift towards "quality consumption" reflects a deeper change in values and priorities.
Young consumers today prioritize value over volume. They care about price but are more willing to pay for products that offer great "quality-price ratio." They appreciate brands but are not bound by them, knowing how to choose items that truly resonate with them within their budget.
With the power of digital communication, the gap between consumers and producers has narrowed. Product information is more transparent, and word-of-mouth spreads faster. This reduces trial-and-error spending and ineffective consumption, making reputation and quality consumption closely linked.
Good consumer supply can indeed create demand and drive rapid development in related industries. Recent phenomena like the high demand for the movie "Nezha: The Devil Comes," the craze for Pop Mart's Labubu dolls, the popularity of the Jiangsu Football Super League, and the buzz around Xiaomi's Su7 and Yu7 launches show that people are willing to spend—but they have higher and more personalized demands.
As Lu Ming, Executive Dean of the China Institute for Development Research at Shanghai Jiao Tong University, noted at the 2025 Summer Davos Forum, there is unmet demand in service consumption areas such as elderly care, healthcare, education, culture, and sports. This structural issue means consumers at all levels have "money but nowhere to spend it," highlighting the need for supply-side improvements in consumption conditions.
We spoke with several young people to understand their spending habits. While they all embrace "emotional consumption," they are also meticulous about their daily expenses. A common thread is a sense of relaxation and self-awareness that previous generations might not have experienced.
Personal Stories: Spending with Purpose
Xiaopipi, 22, Restaurant Server
Xiaopipi works as a server at a well-established hot pot restaurant in Beijing. Despite challenges in the food and beverage industry, his restaurant remains popular thanks to loyal customers.
With a monthly income of 4,400 RMB, free meals and accommodation provided, and one day off per week, Xiaopipi is content with his life. His biggest expense? His hair. He spends nearly 1,000 RMB monthly on haircuts, styling, and treatments. For him, this is a cherished hobby.
He saves half of his salary and uses the rest for daily expenses and hair care. He believes everyone should have a passion, even if it's unconventional. With no urgent financial pressures and a relaxed outlook on marriage and homeownership, he focuses on enjoying the present.
Tingting, 33, Big Tech Operations Manager
Tingting, from Guizhou, has worked in the internet industry for six years. Her high-pressure job keeps her constantly connected, but she manages her finances wisely.
Earning nearly 800,000 RMB annually, Tingting prioritizes her living environment, spending significantly on rent in Beijing. Her largest discretionary expense is collectible toys, with an annual budget of 200,000–300,000 RMB for items like Pop Mart and FARMER BOB figures.
She approaches her hobby with financial discipline: setting annual spending limits, reselling items she no longer wants, and occasionally investing in rare pieces. For Tingting, these collectibles provide a sense of peace and validation.
She and her husband, both busy professionals, have no plans for children and feel no urgency about buying a home. They focus on living fulfilling lives without traditional pressures.
Xiao Chen, 25, Designer
Xiao Chen, a designer from Lanzhou, has a pragmatic view of work and life. He knows his career advancement is limited by local nepotism, so he treats work as a means to fund his passions.
After saving 20,000 RMB from his job and side projects, he took a two-week "healing trip" to Yunnan. For him, money is a tool to enrich life, not an end in itself.
Upon returning, he faced financial constraints and family pressure, leading him to return to his previous job. However, he views this as temporary. His next goal is to see the Northern Lights in Murmansk, Russia.
Xiao Chen believes that major life expenses, like marriage and homeownership, should be handled by his parents. He represents a segment of youth who prioritize personal experiences over traditional milestones.
The Shift Towards Quality Consumption
Young people today are not spending less; they are spending smarter. They seek depth, meaning, and personalization in their purchases. This trend is driven by several factors:
- Value Over Volume: Consumers want products that offer lasting satisfaction, not just low prices.
- Transparency and Trust: Easy access to information and reviews helps them make informed choices.
- Emotional Connection: Spending is often tied to hobbies, interests, and emotional well-being.
- Financial Awareness: Many young people balance indulgence with careful budgeting and saving.
This evolution in consumer behavior presents opportunities for businesses to innovate and meet these new demands. By focusing on quality, authenticity, and engagement, brands can connect with young consumers more effectively.
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Frequently Asked Questions
What is quality consumption?
Quality consumption refers to a spending approach where consumers prioritize value, durability, and personal satisfaction over low prices or brand names. It involves making informed choices that align with individual preferences and long-term benefits.
How do young people balance spending and saving?
Many young people adopt a disciplined budgeting strategy, allocating funds for necessities, savings, and discretionary expenses. They often set spending limits for hobbies and use resale platforms to manage costs.
Why are experiences so important to young consumers?
Experiences create lasting memories and personal growth. Young people value these over material possessions, as they contribute to a sense of fulfillment and well-being.
How has digital transparency influenced spending habits?
Online reviews, social media, and direct feedback make product information more accessible. This helps consumers avoid poor purchases and invest in items with proven quality and reputation.
What role does emotional spending play?
Emotional spending allows individuals to express themselves and find joy. While it can be indulgent, many young people manage it responsibly within their financial plans.
Are young people avoiding major investments like homes?
Some young people delay traditional investments due to financial constraints or shifting priorities. They focus on immediate experiences and goals, often viewing homeownership as a long-term rather than urgent objective.
Conclusion
The spending habits of young people today reflect a blend of rationality and emotion. They seek quality, value, and personal meaning in their purchases, while also managing their finances with care. This approach not only enhances their quality of life but also drives demand for better products and services. As the market adapts to these changes, the future of consumption will continue to evolve, emphasizing authenticity, engagement, and individual fulfillment.