Has Chinese consumption entered its ‘wonderland’ era?

Following the peak of Labubu-driven hype and the rise of what analysts have termed the “charm economy” — a market trend centered on emotionally resonant, collectible goods — China’s consumer market appears to be entering a more sustained phase of joy-led spending. Even as questions mount over whether Labubu — Pop Mart’s iconic monster character — has passed its commercial peak, consumers continue to seek out products and experiences that deliver emotional relief and nostalgia. The appetite spans categories, from “healing items” and playful accessories to increasingly immersive brand activations. Is this the ‘kidult’ economy? On Xiaohongshu (also known as RedNote), the numbers point to mainstream scale rather than niche interest. Hashtags including #dreamcore (2.1 billion views), #everythingcute (387.2 million), and #kidcore (25.4 million) signal a durable appetite for soft, fantasy-driven aesthetics. At the product level, that appetite translates into demand for nostalgic IP collaborations, simulation food keychains, and other objects engineered to deliver small, repeatable moments of joy. These trends align with findings from trend forecaster WGSN’s Asia Shopper Priorities, which identifies a “Living in Wonderland” shift as one of the defining commercial forces reshaping APAC consumption. “It’s one of the most commercially significant shifts we’re tracking for APAC shoppers right now,” says Laura Saunter, senior strategist at WGSN. She points to Chinese consumers as leading the charge: “They’re spending big on idols, characters, and fictional worlds not as escapism, but as a core expression of identity and joy.” The figures underscore the shift’s commercial weight. “Gross merchandise value of IP-related products grew 448% year-on-year globally in 2024, with China accounting for 37% of the global toy and games market alone,” Saunter says. Central to this is the rise of the “kidult” consumer: adults drawn to products and environments that evoke childhood. The pull is cultural as much as commercial. As Ashley Ogawa Clarke observed in a Q4 2025 interview with Jing Daily, the appeal of kawaii fashion and charm culture reflects a desire to reconnect with simpler emotional states. In China’s current climate — marked by economic caution and social pressure — consumers are gravitating toward purchases that offer immediate comfort. The popularity of “healing items,” typically framed around calmness and cuteness, is a direct expression of that. Why brands need joyful experiences WGSN situates “Living in Wonderland” within a broader regional shift in consumer expectations. According to its report, 80% of APAC consumers say they rely on brands to deliver unique or transformative experiences — a demand that has direct implications for how retail is designed and activated across the region. For brands, the practical implication is a fundamental rethinking of physical retail. “For fashion and retail, that means the store itself has to become a world,” says Saunter. She points to early movers in China: Masonprince, whose spaces are designed as immersive environments; Miniso, which has leaned into IP-led differentiation; and Mixue, which has built its identity around its Snow King mascot. In China, brands are translating this philosophy into physical and digital investment. Interactive installations, themed pop-ups, and augmented and extended reality (AR/XR) overlays are increasingly deployed to draw consumers into experiences that extend well beyond the point of sale. “The opportunity isn't just in IP collaborations,” Saunter says. “It’s about designing for emotional participation across every touchpoint.” Saunter describes the components of this shift in concrete terms: “cinematic spaces, collectible fan ecosystems, and brand worlds that feel genuinely inhabitable.” Underpinning it all, she argues, is a move from storytelling to what she calls “storyliving” — stores conceived as chapters of a narrative rather than product display environments. Brand consistency, she says, is what makes the model work: “Across APAC, it is a top driver of recognition and loyalty.” The “Living in Wonderland” dynamic is not confined to fashion. In the automotive sector, customization and consumer co-creation are emerging as expressions of the same playful impulse. On Xiaohongshu, #adultsneedbigtoystoo has accumulated 43.7 million impressions, suggesting the sensibility has taken hold among luxury automotive consumers as well. Joy-led spending’s commercial logic is becoming harder for global brands to ignore. Emotional resonance, once treated as a secondary consideration, is emerging as a primary driver of purchase and loyalty in China. For brands operating in APAC, the strategic question is no longer whether to invest in experiential and emotionally led retail, but how quickly they can do so at scale. Delivering moments of surprise, delight, and escapism is no longer optional but central to driving loyalty and repeat purchase in China.

Has Chinese consumption entered its ‘wonderland’ era?

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Has Chinese consumption entered its ‘wonderland’ era?

How Bottega Veneta weaved China’s forever it bag