Gen Z Population
270M
Born 1995–2009 (~19% of total population)
Monthly Disposable Income (Median)
¥4,800
Urban Gen Z average, 2025 (~US$660)
Guochao Brand Market
¥3.2T
2025 estimate. +18% YoY, rapid growth
Live Commerce Market
¥4.9T
2025. The central purchase channel for Gen Z

1. Understanding China's Gen Z — The "Paradoxical Consumer"

China's Gen Z cannot be described in a single word. On one hand, they are masters of "rational consumption" (精打细算) — scouring Pinduoduo for the cheapest deals and comparing coupons obsessively. On the other hand, they are practitioners of "emotional spending" (情绪消费), readily dropping ¥2,000 on a Snow Peak tent or a Pop Mart mystery box without hesitation.

Behind this double standard lies the rational calculus of a generation that benefited from China's economic rise yet now faces genuine challenges: a tight job market and sky-high property prices. Their core spending principle — "demand value-for-money on necessities, spare no expense on things with emotional value" — is the lens through which every product and marketing decision for this cohort must be designed.

🎯 The Grand Principles of Gen Z Marketing

"Function × Emotion × Story" Triangle: Selling on specs alone is over. If you cannot give Gen Z a story behind the product, a brand philosophy they believe in, and a vivid picture of who they become by using it, they will not choose you.

Research on Xiaohongshu, Buy on Douyin: The purchase journey is unlike anything before. Gen Z reads KOL reviews and "landmine" (踩雷) warnings on Xiaohongshu, then makes impulsive purchases during Douyin live-streams. Both platforms require simultaneous investment.

"Domestic vs. Foreign" is the Wrong Frame — Think "Quality × Resonance": The Guochao wave continues, but Gen Z are not domestic-brand absolutists. They will choose a foreign brand if it is genuinely excellent and aligns with their sensibility. However, "made in Japan" alone is no longer a sufficient reason.

2. The 10 Big Trends of 2026

🇨🇳
TREND 01
Guochao (国潮) Deepens — "Rediscovering Chinese Culture"
Domestic BrandsCultural IPNew Chinese Style
Starting with Li-Ning and Anta, Guochao now covers "new Chinese-style fashion," Hanfu, domestic cosmetics, and domestic games. It is no longer just "cheap domestic" — it is the expression of pride in Chinese aesthetics and tradition. Florasis' "Eastern Beauty" concept and the global hit game Genshin Impact are emblematic of this shift.
🧋
TREND 02
New Tea Drinks (新茶饮) — "Tea" Becomes Cutting-Edge
CHAGEEHEYTEANayukiJasmine White
A market exceeding ¥300B. Fresh milk tea that showcases the original aroma of tea leaves dominates. An increasing number of Gen Zers visit these chains more often than Starbucks. Price point: ¥15–28 per cup. CHAGEE is also generating buzz overseas (Southeast Asia, Japan). Cup design and seasonal limited flavors drive constant social-media sharing.
🐾
TREND 03
Pet Economy — Unlimited Spending on "Fur Babies"
Pet FoodPet HealthcarePet Fashion
China's pet industry surpassed ¥600B in 2025. Amid late marriage and declining birth rates, Gen Z increasingly treats pets as family. Spending on premium pet food, pet insurance, and specialist veterinary care is surging — "my pet eats better than I do" is a common quip. Japanese pet brands (Unicharm, Inaba, etc.) have a major opportunity here.
🏕️
TREND 04
Outdoor & Sports — From Urban to the Wild
露营 (Camping)徒步 (Hiking)飞盘 (Frisbee)
Camping, hiking, and frisbee culture exploded after the pandemic. Snow Peak, Coleman, and Patagonia are booming. Domestic outdoor brands (Mugaodi, Toread) are growing fast too. "Instagrammable photos in nature" combined with SNS appeal means no expense is spared on gear among this expanding cohort.
🪆
TREND 05
IP Collabs & Blind Boxes — The Joy of "Collecting"
Pop MartDIMOOLabubu
The blind box (盲盒) market led by Pop Mart exceeds ¥90B. The "gacha" excitement and collector's desire for secret figures are hugely compelling. Labubu is selling out in Thailand and Japan too. Collaborations with Japanese IP (Doraemon, Sanrio) are massively popular. F&B brand collab boxes have also become a staple marketing format.
💄
TREND 06
Skincare & Beauty — The "Ingredient" Generation and "Science Beauty"
Ingredient FansSensitive SkinSunscreen
Gen Z skincare enthusiasts called "ingredient fans" (成分党) research niacinamide, retinol, and hyaluronic acid themselves, choosing by efficacy and value. Domestic cosmetics brands (Proya, Winona) are surging. Japanese brands can differentiate on safety, sensitive-skin formulation, and ingredient transparency — areas where consumer trust remains high.
🎮
TREND 07
Gaming & Content — Pursuing "Immersive Experiences" (沉浸式体验)
Genshin ImpactBlack Myth: WukongScript Murder (剧本杀)
Black Myth: Wukong became a global hit, proving Chinese games' international competitiveness. Offline, "script murder" (mystery role-play bar) venues are expanding rapidly. Demand for immersive entertainment (escape rooms, experience-based shops) is robust. Japanese game IP, manga, and anime remain powerful content assets with strong resonance.
✈️
TREND 08
"Commando Tourism" vs. "City Walk" — Travel Style Bifurcation
Lightning TripsSlow Urban WalksInbound Tourism
"Commando tourism" (特种兵旅游) squeezes dozens of sites into 48 hours. In contrast, "City Walk" means slowly exploring one city as an experience-first journey. For Japan travel, demand for "photogenic alleyways, temples, and food" in Kyoto, Kanazawa, and Nara remains strong. Experiential tours — cooking, crafts, local culture — are a clear winning strategy.
🥗
TREND 09
Health Foods & Functional Foods — "My Body Is My Capital"
SupplementsCollagenProbiotics
Demand for sleep-support supplements, collagen, probiotics, and vitamins is exploding. The concept of "inside-out wellness" (内调外养) has taken root. Japanese functional food brands (DHC, Fancl) still command strong trust. However, domestic functional brands are growing rapidly, making differentiation essential.
♻️
TREND 10
Sustainability & "Decluttering" — A Changing Relationship with Things
Xianyu (2nd Hand)Eco-consciousSecondhand Economy
The secondhand marketplace Xianyu is growing explosively, with 600M+ monthly active users. The shift from "owning things" to "buying experiences" is also pronounced. Growing environmental awareness combined with value-consciousness has dramatically reduced resistance to secondhand goods. Luxury resale and vintage clothing are also gaining traction.
📊 China Gen Z Spending Share by Category (2025)

3. Platforms Where Gen Z Gathers — "Where" They Discover and "Where" They Buy

🎵
Douyin (抖音)
800M+ MAU
Short video & live commerce. The #1 "impulse purchase" channel for Gen Z. Discovery-to-purchase in under 30 seconds is not unusual.
📷
Xiaohongshu (RED)
300M+ MAU
Lifestyle, beauty & travel "review SNS." The go-to for pre-purchase research. KOL "landmine" (negative) reviews carry enormous influence.
🛒
Pinduoduo (Temu)
900M+ MAU
Ultra-low-price e-commerce. The main battlefield for "rational consumption." Used for value buys on daily goods, food, and electronics.
🎮
Bilibili (B站)
340M+ MAU
Anime, gaming & educational video hub. The cultural home for Gen Z "otaku." Extremely high affinity with Japanese anime and game IP.
📈 Guochao Brand Market Size Trend (Trillion RMB)

4. Business Opportunities for Japanese Companies — 6 Sectors to Win Gen Z

🌸
Skincare & Sensitive Skin Care
Market Size: ¥800B+ (2025)
Lead with "ingredient transparency," "sensitive skin formulations," and "Japanese safety standards." Ingredient-explanation content on Xiaohongshu combined with KOL partnerships is highly effective. MUJI, Shiseido, and Kao offer proven success models.
🐕
Pet Products & Pet Food
Market Size: ¥600B+ (2025)
Japanese brands like Unicharm (pet products) and Inaba Pet Food enjoy high trust. "Natural, additive-free, safe" messaging and the pet beauty & health-management categories are particularly promising entry points.
🧸
IP Collabs & Character Merchandise
Market Size: ¥150B+ (2025)
Enduring demand for Japanese IP — Doraemon, Sanrio, Pokémon. Collaborations between Chinese local brands and Japanese IP (food × anime characters, daily goods × mascots) have explosive potential to go viral on social media.
🍵
Food & Beverage (Health & Experience)
Market Size: Food e-commerce ¥3T+
Interest in matcha and Japanese ingredients (dashi, soy sauce, miso) is growing. For functional food (supplements, probiotics), "made in Japan" brand trust is a genuine asset. "Selling the Japanese dining experience" through experiential marketing also resonates strongly.
🏕️
Outdoor & Sports Equipment
Market Size: ¥200B+ (2025)
Snow Peak is a model case of successful Gen Z penetration — combining premium quality, great design, and Japanese-brand trust effectively. Mizuno, Descente, and Columbia (Japan operations) also have compelling opportunities to appeal to Chinese Gen Z.
🎌
Inbound Japan Experience Design
Inbound Spending: ¥5T+ (2025)
The shift is from "shopping sprees" to "experience consumption." Traditional craft workshops, cooking classes, hot springs, and regional cultural experiences are the top reasons Gen Z visits Japan. Investing in visually compelling content for Xiaohongshu and Douyin directly drives bookings.
📊 Gen Z Usage Rate (%) and Purchase Influence Score by Platform

5. Practical Marketing Guide — 5 Things Japanese Companies Should Do Now

🚀 Gen Z Market Entry Checklist for Japanese Companies

  • Build a Strong Xiaohongshu Presence: The main battlefield for pre-purchase research. Turn product usage, ingredients, and brand backstory into compelling content. Collaboration with KOCs (Key Opinion Consumers — everyday power users) is especially effective at building authentic credibility.
  • Open a Douyin Official Store (TikTok Shop China): Ride the live commerce wave. Aim for 1–2 live-stream selling sessions per week to demonstrate products in action. Offering trial-size samples and actively collecting user reviews dramatically improves conversion rates.
  • Articulate "Emotional Value" Explicitly: "High quality" and "safe" are necessary but not sufficient. You need content that vividly paints the picture: "How does my life actually change when I use this product?" Emotional experiential value — not just features — drives Gen Z purchase intent.
  • Co-existence Strategy with Guochao: Rather than trying to compete head-on with rising domestic brands, "Japan × China collaboration" and "Japanese technology × Chinese design" fusion approaches are increasingly effective — and they disarm the nationalism angle entirely.
  • Build Long-Term Relationships with Gen Z KOLs: One-off sponsored posts are fading in effectiveness. Invest in nurturing KOLs who "genuinely love your brand" over the long term. Influencers whose authenticity shines through are measurably more effective than paid endorsers.

Conclusion — Gen Z Are Not Targets to "Capture" but Partners to "Co-Create" With

China's Gen Z surpasses any marketer's definition of them the moment that definition is written. They are highly information-savvy and can immediately distinguish between companies that are genuinely committed and those offering surface-level outreach. Any campaign that radiates a "we made this for Gen Z" feeling will backfire.

What successful Japanese brands share is sincere investment in product quality, genuine respect for Chinese culture, and meaningful investment in authentic shared experiences on social media. The 270-million Gen Z market is absolutely within reach for Japanese companies — not by confronting Guochao, but by delivering what is authentically real.

🔑 Key Takeaways

① China's Gen Z (270M people) are hybrid consumers who alternate between "rational consumption" (value-seeking) and "emotional spending" (paying for experience and story).

② The 10 big trends of 2026: Guochao, new tea drinks, pet economy, outdoor culture, IP collabs, ingredient-focused cosmetics, immersive experiences, travel bifurcation, functional foods, and sustainability.

③ The dominant purchase journey is "research on Xiaohongshu → buy during a Douyin live-stream." Simultaneous investment in both platforms is non-negotiable.

④ Areas where Japanese companies' strengths land well: skincare, pet products, IP collabs, health foods, outdoor gear, and inbound Japan experiences.

⑤ The long-term brand-building requirement is a philosophical shift from "selling to Gen Z" to "co-creating with Gen Z."