Customers talk about Labubu dolls at a shopping mall in Beijing on Aug. 31. Photo: Chen Mirong/CSST

The undisputed “it item” of the first half of 2025 was the toy Labubu—many young people were willing to spend hundreds of yuan on it without hesitation, while limited-edition hidden pieces fetched six-figure sums on the resale market. Capital certainly played a role, but its swift popularity ultimately rested on widespread acceptance among youth. They explained that Labubu’s “ugly-cute” aesthetic conveys the message: “I may not be perfect, but I deserve recognition” or “I may not fit mainstream standards of success, but I am still worthy of love.”

Meanwhile, the freshly made beverage industry—from coffee to milk tea—has plunged into a fierce price war, with companies offering heavy subsidies while racing to open new outlets. On social media, young consumers share money-saving strategies: “Luckin for 5.9 yuan in the morning, Cotti for 2.9 yuan in the afternoon, and Mixue for 3.9 yuan in the evening—three drinks a day, no reason to pass up the perks.”

Within these everyday consumption scenarios, it often seems like the same young people are both spending lavishly and scrimping obsessively. So what does consumption actually mean to them? And what are they truly seeking through it? Through in-depth surveys, we set out to better understand the consumption values of youth today.

Focusing on needs, regulating spending

During our research, some young people introduced the term “pingti” (affordable alternatives). While conventionally understood as the practice of seeking budget-friendly substitutes for luxury or high-end brands, the concept has taken on new meaning among the younger generation.

When shopping online, they skillfully swap keywords to find products with similar functions but higher cost-effectiveness—all in the name of saving money. For instance, instead of searching “iPad stand,” they type “recipe stand;” instead of “makeup storage box,” they search “egg carton;” instead of “IKEA rolling cart,” they look for “barber shop tool cart.”

These products use similar materials and serve comparable functions, but once rebranded with trendier names, the prices can differ dramatically. To young people, this is what pingti really means: using practical search terms to uncover affordable, good-quality products—getting “discounted prices without discounted quality.” At its core lies the fundamental question: What exactly do I need from this purchase? Here, functionality and practicality take precedence.

Admittedly, the consumption habits of young people sometimes do veer into consumerism. But it’s misleading to assume that chasing big brands and luxury goods is a universal trap for them. Some are simply not particularly drawn to luxury brands, nor do they feel compelled to consume them. As one interviewee remarked, “The idea of expressing yourself through a designer handbag is outdated. Nowadays, we prioritize convenience. For commuting via bus or subway, a canvas tote is far more practical than a luxury bag.” At the same time, luxury products, though expensive, come with clear pricing and transparent value: You know exactly what you’re paying for and where your money goes.

Learning to save

There was a time when many people believed in the idea of “spending first, repaying later,” arguing that increasing income was more important than cutting expenses—that money is earned, not saved. While public perception still paints young people as “monthly spenders,” today’s youth have quietly begun embracing saving, ensuring they always keep a cushion in their accounts and exercise flexibility in their spending.

Many have even resumed using physical cash for transactions. One interviewee shared a revealing experience. His family had asked him to withdraw 10,000 yuan from the bank. Upon receiving the cash from the teller, he was deeply struck by the sheer volume of the money and reminded of how much it actually was. He reflected on how, in an age dominated by mobile payments, money has become abstract. Whether paying with a phone or scanning a QR code, the act of spending is reduced to a simple “beep.” Amounts like 10 yuan, 100 yuan, or even 1,000 yuan are just numbers on the screen—easy to spend without a second thought. But holding physical cash made him reconsider his usual expenses. The tangible presence of the money brought a sudden clarity he hadn’t felt in years.

He further described how digital payments have reshaped spending habits: People lose track of transaction amounts, purchase frequency, and total expenses, gradually abandoning the practice of careful budgeting. And when mobile payments are linked directly to credit cards, it’s easy to fall into the trap of spending unconsciously—only to be surprised and confused when the bill arrives.

Another interviewee admitted that he long had little awareness, let alone urgency, about saving. It was not until he and his girlfriend began planning for their future that he suddenly realized: “Money isn’t just about balancing income and expenses.”

What lies ahead? What if he continues his spendthrift ways and is suddenly laid off? What if his industry slows down or declines? What if he cannot even pull together a down payment when it comes time to buy a house or a car? These questions convinced him it was time to change his “QR code + credit card” payment habits.

Beyond preparing for the unexpected, it is likewise important to recognize that young people are actively using saving and budgeting to consciously reshape their spending behaviors. For them, “being frugal” is no longer synonymous with “being stingy.” Meanwhile, the consumerist narrative that equates taste, status, and upward mobility with luxury purchases has largely lost its influence over this generation.

Secondhand trading in vogue

For today’s youth, secondhand consumption has become commonplace, covering a wide range of goods. Many are seasoned experts in the secondhand markets—in their eyes, “used” doesn’t mean “useless” or “obsolete.” Some items might still be fully functional, or could be sought-after products within certain communities that are hard to find elsewhere. Some unique goods even gain value with each resale. As a result, secondhand trading isn’t just about offloading old belongings—it also blends consumption with social interaction.

During our survey, we met a particularly experienced secondhand trader who mostly dealt in everyday consumer goods. If such products are widely available, what is the point of buying them secondhand? She explained that for young people, secondhand trading isn’t just about getting rid of junk or hunting for bargains. Rather, it’s a way to extend the lifecycle of products, reduce expenses, and minimize waste—making sure things are used to their full potential.

A stable and thriving segment of the secondhand market operates within niche communities, where the social dimension becomes pronounced. These items appeal to a limited audience and often require “being in the circle” to access. But joining the circle isn’t just about shopping—it’s also about finding like-minded people and connecting through shared interests. In these spaces, the line between buyer and seller is blurred. Beyond transactions, they bring together individuals with common passions, creating social hubs and even a sense of belonging for enthusiasts.

These glimpses into the consumption habits of young people reflect a broader shift in their attitudes toward spending. While they do love to spend, they are equally enthusiastic about saving. They believe in “using things for their own purposes” while also insisting that “things should be used to their fullest.” They craft highly personalized consumption styles while also valuing interaction and seeking social connection through their purchases.

Focusing solely on whether they are “spending” or “saving” misses the point. What truly matters is how they perceive and position their relationship with material goods—and how, through this relationship, they establish their own principles and values surrounding consumption. Whether spending freely or saving consciously, they adhere to the notion that “I control things, not the other way around.” For them, the ultimate goal of consumption is no longer about pleasing others—it’s about pleasing oneself.

Xing Tingting is an associate professor of sociology from Shanghai University of Finance and Economics.