What is going on with the "guzi" mania?

In recent years, the luxury economy in China has undergone a surprising metamorphosis (not in a positive sense), with the decline of the traditional market and the rise of new forms of consumption. Among these, the "Guzi" phenomenon is emerging as a modern diamond rush, an economic opportunity that could redefine the sector. The news of a "baji" (吧唧, badge) sold for over 70,000 RMB (9,609.84 USD) climbed the Hot Search list on Weibo, proving that this is not just a passing trend but a cultural wave in full expansion. But what exactly are these "Guzi"? The term is the Anglophone transliteration of the word "goods" and refers to products related to the world of anime, comics, games, and novels (ACGN). A market that is proving to be a goldmine, better defined as "plastic gold," for those who can grasp its potential. With 9.5 million customers and 41 million sales at the Bailian ZX Creative Center in Shanghai, the shopping mall has transformed into a seven-story temple dedicated to ACGN culture. The phenomenon has accumulated over 10 billion views on Douyin and 2 billion on Rednote, and data from iiMedia are telling: the value of the Guzi economy in China has surpassed 23 billion dollars in 2024, with an estimate of over 43 billion in the next five years.

While in Europe, brands experiment with accessories and "pocket wardrobes" to showcase on bags, in China, the Guzi phenomenon is not just an aesthetic matter, akin to the chaotic customization trend, but an emotional and identity-driven experience. It is the storytelling of oneself through small objects that become talismans of belonging. ACGN buyers are not just consumers but modern collectors, willing to spend astronomical sums to acquire pins, bows, and figurines that embody their favorite heroes. It is no coincidence that the hashtag #ItabagSharing has gathered over 78k views on Rednote, with users proudly showcasing branded bags—often Hermès or transparent PVC Chanel—turned into genuine portable altars dedicated to their anime idols. It is a form of visual storytelling, an open conversation between fashion and pop culture that echoes the very concept of the "it-bag" but reinvents it with a new visual grammar. The strong bond between anime culture and consumers is evidenced by the incredible success of the Loewe x Ghibli collection, which saw a 23% surge in searches within just 24 hours, according to Lyst. But this audience is also ruthlessly demanding: when Jeremy Scott launched the "Anime Antoniette" collection for Moschino in 2020 without properly acknowledging the manga that inspired it, The Rose of Versailles (Lady Oscar in Italy), a wave of outrage erupted, proving that merely exploiting the aesthetics is not enough without an authentic understanding of the reference culture.

The sense of belonging is the beating heart of this economy. According to a McKinsey survey, 64% of Chinese consumers place greater importance on emotional consumption than purely functional consumption. This connection is also reflected in the preference for offline purchases, with physical stores becoming true shrines for enthusiasts. «It’s not just about objects, but a form of art and personal expression that transcends fashion», says Jiacheng Zhu, CEO of the Guzi Yuechai Goods retail chain, to JingDaily. It’s no surprise that the first to recognize the potential of this phenomenon were the giants of the food and beverage industry. Chains like Heytea (China’s leading bubble tea chain), Good Me, and KFC have launched special collections dedicated to Guzi, while Starbucks even introduced a Christmas line inspired by anime. It’s a development similar to how, in the early 2000s, Happy Meal toys became status symbols for children: the value lies not only in the object itself but in the narrative surrounding it. The economic impact of the Guzi phenomenon is also visible in financial markets: the stock value of MINISO, specializing in pop-culture merchandising, has risen by over 18% in Hong Kong, while retailer POP MART has recorded a 90% growth year-on-year in the first quarter of 2024. With the slowdown of the luxury market in China, many brands are questioning what the next growth engine could be. While Yoox Net-a-Porter (YNAP) exits the market and analysts debate whether South Korea or Thailand could fill the void left by China, the explosion of the Guzi economy opens a new chapter. Could this be the future of luxury? In an era where a brand's value is increasingly measured by its ability to create immersive experiences, Guzi may not just be a passing trend but a cultural revolution set to redefine the rules of the game.