Guzi economy: ACG fandom is now big business in China

What happened From July 11 to 13, BilibiliWorld 2025, one of China’s biggest anime and gaming expos, took place in Shanghai, drawing tens of thousands of Gen Z and Gen Alpha fans from across the country. Many attendees arrived with ita bags, transparent backpacks decorated with colourful badges of favorite characters — turning the city into what netizens dubbed a temporary “Pain Town,” a playful reference to a place full of “itasha” (decorated cars) and ita-bags (fan merch bags). Over the three-day event, this niche community — commonly known as “two dimensional” (二次元) or the ACG world (short for anime, comics, and games) — generated major economic impact. Local travel, dining, hotels, convenience stores, and attractions saw a surge in spending. Food searches near the Baolian ZX Plaza, which is becoming the mecca of China’s ACG fans, rose over 800%, and hotel searches nearby increased over 300%, according to Meituan Travel. Special shuttle buses were painted with anime-themed artwork to connect the main venue and satellite locations, offering attendees an immersive “2 dimensional world” experience For many visitors, especially those born after 2000, traveling for expos like BiliBiliWorld is becoming a new form of tourism. The Jing Take China’s ACG subculture, once considered niche, has exploded into a mainstream force driven by Gen Alpha and older Gen Z. In 2024, the number of ACG enthusiasts in China surpassed 500 million, making it the largest market globally. The industry now exceeds 270 billion RMB ($37 billion), overtaking sectors like smart home appliances and coffee. At the heart of this cultural movement is what Chinese fans call the ‘guzi economy.’ Guzi is a phonetic twist on the word “goods” and refers to merchandise like badges, figurines, plush toys, and keychains, tied to popular characters. These items are more than products: they are emotional tokens of identity, belonging, and joy. For brands looking to engage with the next generation of Chinese consumers, this is a market too big to ignore. Companies like Pop Mart and Miniso have tapped into this economy successfully by focusing on collectible IP (intellectual property) and experiential retail. Pop Mart ended 2024 with recordbreaking results, as its push into international markets and emphasis on IP development drove revenue to 13 billion RMB ($1.8 billion), reflecting a 106.9% YoY increase. These spending patterns reflect a deeper behavioural shift. For Gen Alpha, consumption is about emotional connection, not just utility. Buying a plush toy isn’t childish. It’s a form of self-expression, especially in a digital-first world where identity is fluid and fandom is culture. Still, not every IP becomes a long-term success. As seen with Disney’s LinaBell, explosive popularity can fade. The challenge for brands is to build or align with IPs that offer lasting value: narratives, characters, and aesthetics that resonate deeply. ACG culture is no longer fringe. It’s a driving force of China’s youth economy. Brands that want to stay relevant to tomorrow’s consumers must understand how fandom, emotional value, and community-centered experiences shape this new landscape. Additional research by William Zhou. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

China’s Gen Alpha powers a fandom industry boom

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China’s Gen Alpha powers a fandom industry boom