Pursuing Certainty: How China's Z Generation is Reshaping Consumption

Table of contents Executive summary3 The new reality: Living for today, saving for tomorrow4 Three changes in Gen Z’s consumption The return of rationalityBudgeting emotions, not just money Winning the certainty mandate Deliver with reliabilityWin with emotional connectionDesign for resonance About this research13 Executive summary For years, commentary about China’s younger generation has oscillatedbetween alarm and dismissal. Often described as “lying flat” for optingout of relentless striving, Generation Z (Gen Z) appears to be scaling To their elders, who lived through decades of uninterrupted growth,this disengagement may seem defeatist. Yet a closer look at Gen Z’spriorities and decision-making reveals a very different story. Rather than These choices make sense when volatility and technological disruptionare the new baseline. And the desire for certainty is spreading well beyondGen Z. This shifts the core challenge for business leaders: from how to As Gen Z evolves from tastemakers to mainstream consumers andenters more complex life stages, the logic they follow will increasinglyshape the market. For companies, the ability to deliver reliable value and The new reality: Living for today, While the number of Chinese consumersoverall prioritizing their careers has droppedby 8 percentage points (pp) since 2021,Gen Z is moving in the opposite direction,with a 3 pp increase. Their focus on wealthhas also surged, rising by 17 pp—compared In 2024, China’s Generation Z—those bornbetween 1995 and 2009—numbered nearly230 million, accounting for nearly 16.5% of the total population.1As China’s mostinfluential trendsetters, Gen Z serves as thetesting ground for new brands, categoriesand cultural movements that eventuallydiffuse into the broader population. As they Notably, the meaning of “growth” appearsto have shifted. They now prioritize buildingpractical skills, securing tangible returnsand managing risk, while still valuing At the same time, Gen Z is coming of age ina more uncertain environment. This realityshapes how young people assess the Our research shows that compared withpeers of the same age in 2021, today’sGen Z consumers aged 18–29 placesignificantly more weight on health, careerand financial security, while the relativeimportance of family, romantic relationships Far from “lying flat”, Gen Z is activelyinvesting in their future. 60% of Gen Z arelearning new skills—10 pp higher than theoverall sample. 38% have experimented As aspirations grow and budgets tighten,Gen Z is finding creative ways to make themost of what they have. They lean intohigh-impact, low-cost experiences: bite- A paradox emerges when observing Gen Z:Why do they save aggressively while stillspending on travel and “emotion-driven” Their answer is simple: Why not? In fact, Gen Z splits their spending intotwo buckets, one for today and one for thefuture. They invest in experiences that offerimmediate rewards, while simultaneously For Gen Z, seeking certainty isn’t aboutspending more or less—it’s about spending Three changes in Gen Z’s consumption The return of rationality Gen Z is becoming more cautious andselective with their spending. 82% ofGen Z consumers are actively saving orcutting back on non-essential spending. This shift doesn’t mean they’ve lostinterest in quality or uniqueness; rather,identity premiums are giving way to riskmanagement. Compared to older cohorts,Gen Z relies far more on multi-source Budgeting emotions, not just money Similarly, Gen Z has not abandonedthe pursuit of emotional value, they’vejust become more selective about it.Today’s youth are increasingly proactive Consumption has also emerged as animportant tool for emotional regulation.Over half (52%) of Gen Z consumersexplored new brands in the past year— AI as a steadying force Another way Gen Z navigates this complexenvironment is by turning to AI. 85% of GenZ consumers report frequent use of AI tools, and regain a sense of control. On the otherhand, for some young people, it offers alow-pressure space for reflection and self-expression. Always available, responsive More importantly, Gen Z’s expectations ofAI go far beyond efficiency gains (Figure 5).On one hand, AI serves as a decision- Winning the certainty mandate Influencing Gen Z has become more difficult—not because they are harder to please,but because their tolerance for risk, trial-and-error and emotional cost has fundamentally Deliver with reliability In the past, young consumers embraced novelty for its own sake, often toleratingimperfection in exchange for something new. Today, Gen Z is shifting from expansive For today’s Gen Z, reliability is the new “new”. Innovation is judged less by how disruptive it is,and more by how reliably it delivers. Xiaomiexemplifies this shift. For many young consumers, choosing a Xiaomiproduct is less about the individual item and more about buying into a connectedsystem in which everything works seamlessly together. Bu