China’s Gen Z is increasingly turning to retail therapy, blind boxes, and even AI companions to boost their mood, according to a new report highlighting the rise of “emotional value” in spending habits.

The report, released last week by social platform Soul and the Shanghai Youth Research Center, found that more than 90% of Soul users born after 1995 prioritize “emotional value” — a term referring to the sense of belonging, recognition, and care derived from relationships, products, or services. Emotion-driven spending rose 16.2% compared to last year, the report said.

Nearly 80% of Gen Z Soul users said emotional value comes primarily from understanding and responsiveness in intimate relationships, with more than half also cited general social interactions. Nearly half described emotional value as “an effective remedy for stress and anxiety,” 43.1% said it makes them feel “seen and needed,” and nearly a third viewed it as “a source of motivation and a means to navigate life.”

Men account for 55.9% of Gen Z Soul users who engage in retail therapy, while women make up 44.1%, according to the report. Women were more likely to spend on personal indulgences, and men tended to buy items tied to identity, social recognition, or conversation value.

The report also found that Gen Z Soul users spend an average of 949 yuan ($133) on retail therapy monthly. And those with a monthly disposable income below 5,000 yuan showed the strongest demand for retail therapy, suggesting an inverse relationship between income and emotional spending.

The Shanghai Youth Research Center underscored the need to address a growing lack of emotional belonging among young Chinese. Rapid urbanization has weakened traditional bonds rooted in kinship and geography while making it harder to trust others. For China’s Gen Z, “the more you grow up, the lonelier it gets,” the report noted.

“When real-world social interactions fail to provide stable emotional support, young people turn to consumerism, seeking emotional substitutes…giving them the idea that ‘consumption equals companionship,’” the report concludes. The authors called for spending moderation, stronger coping mechanisms, and collective efforts to rebuild diverse social networks.

Editor: Marianne Gunnarsson.

(Header image: Shoppers purchase Chiikawa merchandise on the opening day of a pop-up store in Shanghai, May 30, 2025. Ying Tang/NurPhoto via Getty Images/VCG)