“Guzi” or “goods” economy (谷子经济) is now one of the hottest markets in China, especially among young consumers. “Guzi” is a transliteration of the Japanese word “グッズ” (lit. goods), which is, in turn, a “wasei-eigo” (和製英語, Japanese-made English) and actually means merch, collectibles or memorabilia. The “guzi economy” that is booming now, therefore, mostly involves designer toys, action figures, IP merch such as pin badges, trading cards and IP collaborations.
Originally from the “erciyuan” (二次元, lit. 2-dimensional, meaning the animation/comics/gaming/light novel or ACGN cohorts) subculture, the “guzi” culture has become mainstream among younger generations from millennials to Gen Alphas.
Data from iiMedia shows that the guzi economy market size has grown from 120.1 billion RMB (16.49 billion USD) in 2023 to 168.9 billion RMB (23.19 billion USD) this year. Wind information also notes that the market index for guzi economy has grown 20% since October this year. Share prices of guzi-related stocks surged, for example, MINISO’s shares grew over 18% in Hong Kong after posting high growth in Q3 2024. Companies also posted high profits, such as POP MART’s 90% year-on-year (YoY) growth in profit in H1 2024.
Young people are also taking on collectibles trading and reselling both as a hobby and a side hustle, as collectible items can fetch a pretty penny. The news of one “baji” (吧唧, badge) selling for over 70,000 RMB (9,609.84 USD) topped the Hot Search list on Weibo, China’s Twitter equivalent.
However, with many hopping on the bandwagon, there are already signs of saturation in the market as offline guzi stores are popping up in every shopping mall and some early ones are already closing down. While the IP business is still growing steadily, whether the “emotional value” the guzi provides the young consumers can sustain the expansion of the market requires further observation.
