Young consumers drive 'goods economy' boom in China

(ECNS) -- Concept stocks driven by ACGN (Animation, Comic, Game, and Novel) derivative products have seen a significant surge since September. The “goods economy”, a new consumer phenomenon centered on peripheral ACGN items, is rapidly emerging in China, with a market scale exceeding 100 billion yuan (about $13.80 billion).

It represents the transaction of ACGN merchandise, including pins, posters, cards, pendent ornaments, stand-ups, hand puppets, dolls, and more. The prices of some popular items range from less than 10 yuan to thousands of yuan.

Data from research institutes showed that from 2016 to 2023, the market size of China's ACGN sector grew from 18.9 billion yuan to over 220 billion yuan. It is expected that by 2029, its market value will grow to nearly 600 billion yuan.

The rise of the “goods economy” is inspired by young Chinese people, including those born after 1900 and 2000. There was a relatively small group of young ACGN fans about 10 years ago, but the group has been growing in recent years, with more and more ACGN culture enthusiasts willing to pay for peripheral products out of hobby or to satisfy their emotional attachment.

Chen Peng, secretary-general of the Wuhan Digital Creative and Game Industry Association, said young consumers are attracted to personalized goods that can meet their emotional demands. They embrace newness, changes, and fashion trends, he added.

Additionally, the “goods” have been given distinctive social attributes encouraged by social media. For example, young people who are keen to buy peripheral products also love to post on social media platforms to display these items, which has become a way to make friends.

The boom of the “goods economy” is not only attributed to consumers, but also the unremitting efforts of the supply side. In recent years, the animation, game, and related industries have developed rapidly, and the influence of well-known IPs has been expanding, attracting a large number of fans through cross-border cooperation and diversified product development. More and more fans have contributed to the expansion of peripheral product consumption.

What’s more, core business districts of first- and second-tier cities across China are committed to creating city landmarks for ACGN consumption, with more than 1,000 shops opening around the country.

First-tier cities with a large population are more inclusive, stimulating the flourishing development of the ACGN economy, said Chen. Meanwhile, they have attracted more and more young people to start businesses or live there, Chen added.