How evolving consumer identities are driving a fresh surge in spending across China

The recently released China Online Consumer Brand Index (CBI) for the September quarter by Peking University as well as insights gleaned from Taobao and Tmall’s 11.11 Shopping Festival for 2025, indicate that quality consumption is on the rise. A common trait among brands gaining prominence on the CBI500 list is their innovative approach. For instance, drone maker DJI’s jump from 29 to 10 reveals how brands respond to the evolving and diverse consumer demand.

This year’s 11.11 Shopping Festival—China’s biggest retail event—delivered Tmall’s strongest growth in four years, with nearly 600 brands surpassing RMB 100 million  ($14 million) in sales. But beyond the headline numbers, 11.11 offers a real-time lens on how consumption is being redefined. Gen Z and millennials are moving beyond purely transactional purchases toward spending that reflects self‑expression, emotional well‑being, and personal values. These shifts can also be seen in CBI’s latest findings.

Four major trends stand out as signals of where China’s consumer mindset is heading next:

AI gadgets fuel tech-enabled lifestyles

Consumer-facing AI hardware exploded in popularity during 11.11 with smart glasses in particular experiencing a  25-fold year-over-year increase on Tmall. These glasses have rapidly acquired must-have status among for tech enthusiasts and consumers who want products that blend intelligence with design.

Momentum was reinforced by the robust performance of new launches. Quark’s first self‑developed AI glasses, S1, entered pre‑sale on Tmall and climbed to the top of the XR bestseller charts soon after. Deeply integrated with Alibaba’s large language model Qwen, the product drew positive user feedback following its late-November launch.

The lessons are not just for smart glass manufacturers but for tech firms across the board: consumers are increasingly willing to invest in augmented reality experiences that integrate smoothly into their daily routines and deliver practical, everyday value.

Pet care goes premium as owners seek specialised solutions

Pet care is shifting from essentials to premiumisation, driven by the deepening emotional bond between owners and their pets. The rise of ‘furkid’ culture is turning pet owners into more discerning buyers who prioritise higher-quality, more tailored offerings for wellbeing and long-term care.

The premium shift is visible across categories. High-end specialised pet foods are taking a larger share of Tmall sales, while pet health spending is moving from reactive treatment to preventive care. At the same time, smart pet devices—such as automated feeders, real-time health monitors, and interactive toys—are increasingly mainstream, helping owners stay connected while adding convenience and peace of mind.

Chinese medicine-inspired beverages are winning over Gen Z

Ingredients traditionally associated with older generations, such as astragalus, kudzu root, and turmeric, are now being reintroduced to younger consumers in modern formats, giving traditional remedies a new commercial momentum.

During 11.11, beverages inspired by traditional Chinese medicine gained meaningful traction. Sales of single-serve sachets of apple and astragalus drink rose 176% year-on-year, while sales of ginger-turmeric shots surged fourteen times compared to September.

The signal is less about nostalgia and more about practicality: younger consumers are weaving wellness into everyday life through convenient, on-the-go formats.

Luxury diversifies into experiential lifestyle categories

At the premium end, growth signals remained strong. Tmall Luxury Pavilion recorded double-digit growth in transactions, daily active users, and new customers in Q3 2025, underscoring continued momentum in high-end demand. Platform data also suggests that luxury spending is broadening beyond fashion into lifestyle categories. High-net-worth consumers increasingly seek purchases that reflect their personal taste and enduring value, such as home furnishings and gold accessories.

High-end home products have emerged as a standout. The fastest growing categories within Tmall Luxury's rapidly expanding home segment include designer lighting, premium tableware, home fragrances, art décor, and luxury furniture.

Gold also showed exceptional momentum. Laopu Gold generated RMB 1.618 billion ($229 million) in online revenue in H1 2025, a 313% year-over-year increase, with 77% overlap between its shoppers and those of brands like Louis Vuitton and Hermès. During 11.11, Laopu Gold’s Tmall flagship store reached RMB 300 million ($43 million) in 10 minutes, an 848-fold increase versus the prior year.

This year’s 11.11 performance also highlighted the spending power of Chinese consumers. This was especially true for 88VIP members, Alibaba's premium loyalty cohort, who contributed 79% of GMV for leading brands, and drove a 39% year-over-year increase in daily active buyers.

Meanwhile, Alibaba’s tiered cross-platform loyalty program (based on spending) has seen its top three tiers—Platinum, Diamond, and Black Diamond—surpass 100 million members who shop for over 90 days per year on average, underscoring both purchasing power and brand stickiness.

Taken together, these patterns reinforce the role of Tmall and Taobao as a barometer of China’s consumption trends, capturing not only what consumers buy at scale, but why they buy it. As identity, wellbeing and experience increasingly shape purchase decisions, the brands best positioned for sustainable growth will be those that keep innovating in ways that align with consumers' evolving expectations.