In 2010, a 1959 vintage bottle of Moutai sold for ¥1.03 million at a Beijing auction. Fifteen years later, a first-generation Labubu collectible figure fetched ¥1.08 million. In the arena of appreciating value over time, Moutai has finally met its match.

Pop Mart (09992.HK) represents both a company and a paradox of our era.

The million-yuan liquor symbolizes national pride, while the million-yuan toy is often dismissed as a frivolous indulgence. Middle-aged consumers stockpile Moutai while wearing Patagonia, whereas young office workers clutching Labubu figures after a budget meal see each other as victims of consumer traps.

Our era is defined by fragmentation. People may scroll through short videos until 2 a.m., only to wake up and criticize the younger generation’s obsession with internet fame. Companies chase consumption upgrades while struggling with cutthroat price competition.

As the consumer goods industry stumbles, Pop Mart’s soaring performance offers a new symbol: emotional value.

Understanding Emotional Value

Emotional value refers to the additional worth of a product beyond its practical function.

If a cup’s primary purpose is to hold water, its added value may come from capacity, durability, or insulation. When its design and aesthetic appeal gain market recognition, emotional value emerges.

This trend mirrors what Japanese scholar Miura Atsushi calls the “third consumption era,” where basic consumer goods have saturated the market, and demand shifts toward personalized, niche products.

The key difference lies in functionality. Basic goods like home appliances and

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fast-moving consumer products serve universal needs, targeting nearly the entire population and enabling massive business scale.

Niche products, by contrast, emphasize non-functional attributes and carry premium pricing. Whether it’s the raw power of a Xiaomi electric car or the mischievous grin of a Labubu figure, these traits defy conventional notions of utility.

The Shift in Consumer Behavior

China’s consumer market has undergone a major shift. Population-driven growth has plateaued, while niche demands are rising rapidly. Pop Mart’s extraordinary performance has overshadowed traditional investment metrics focused on high-frequency necessities.

When office workers wear Arc’teryx jackets but never ski, investors face a challenging question: how do we evaluate businesses built on emotional value?

Basic consumer goods follow a straightforward, quantifiable logic—like a matchmaking process where income, profession, and assets define compatibility. Products are judged by universal standards of practicality.

Non-practical desires, however, are abstract and diverse. Emotional value operates more like romance—it’s subjective, hard to measure, and resistant to formulaic analysis.

Famed photographer Ansel Adams once criticized camera manufacturers for prioritizing technical specs over artistic beauty. They understood optics and marketing but had no feel for aesthetics.

Similarly, Pop Mart’s founder initially wanted Molly, one of its iconic characters, to look more cheerful. The designer insisted on a neutral expression—and it became a hit. Yet, this success couldn’t be replicated directly; Labubu, another popular figure, sports a wide grin.

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Emotional Value in an Economic Downturn

Emotional value seems contradictory during times of consumer downgrading. Conventional wisdom suggests that people should spend prudently and prioritize essentials. Yet, emotional value thrives on “useless premiums.”

Young consumers sipping Milkshop milk tea while unboxing Pop Mart figures, or ordering budget meals while eyeing limited-edition tech gadgets, reflect this paradox.

Some attribute this behavior to the “lipstick effect”—the idea that people buy small luxuries to feel better during hard times. However, this theory lacks solid economic backing.

A more plausible explanation lies in the declining return on reinvestment. During economic booms, people focus on investing in assets, education, or savings, expecting future returns. When the economy slows, these investments yield less, and consumer behavior shifts.

People may no longer see the point in sacrificing present enjoyment for uncertain future gains. Emotional spending offers an outlet for accumulated wealth and frustration.

The New Consumer Logic

Emotional value aligns with the transition from mass consumption to individualized expression. As Miura Atsushi noted, consumers increasingly seek products that reflect their identity, taste, and lifestyle.

Young buyers may hesitate over a ¥9.9 coffee but readily spend ¥99 on a toy. They value design, culture, and aesthetic appeal over pure functionality.

Brands like Lululemon and Xiaomi have successfully tapped into this shift. Lululemon turned yoga pants into a fashion statement by emphasizing abstract values over pure utility. Xiaomi entered the auto market not by mimicking giants

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like比亚迪, but by leveraging performance and emotional appeal in targeted segments.

Universal products are often generic. Products with unique, hard-to-define qualities can command higher prices and loyalty.

The Role of Passion in Innovation

Many analyses of Pop Mart focus on market size and operational skill, overlooking a critical factor: founder Wang Ning is a genuine toy enthusiast.

The collectibles community has its own language and rituals, from “blind box” hunting to sizing terminology. Wang knew these nuances well, even if he was initially unfamiliar with retail terms like SKU.

Profit can be made in many ways, but capturing emotional value requires authentic passion. A product director who has never driven a sports car can’t design one that breaks track records.

Conclusion

We live in an era of reconciling with larger narratives. Old moral standards clash with new values, as seen when a 40-year-old fund manager tries to understand 20-year-old consumers—and stumbles over the appeal of Pop Mart.

Emotional value is about self-satisfaction. When the future feels uncertain, people focus on the present. What matters isn’t monetary policy or debt crises, but what’s for lunch, whether the weather is nice, and if the neighborhood barbershop is still open.

Even on a crowded, anxiety-filled subway during rush hour, there’s a certain freedom in pretending you’re about to pick up a BMW M4.

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