Gen Z Insights China: Inside the Kidulting Economy

In today’s high-pressure world, where identity anxieties run deep, gen z'ers in their twenties are seeking refuge by reconnecting with an idealized childhood.

By unleashing their 'inner child' - whether through collecting nostalgic toys, wearing playful cartoon apparel, or visiting whimsical amusement parks — they carve out precious moments of escape, finding emotional solace and renewed comfort amid life’s stresses.

01: Gen Z's Toy Obsession 

In the first half of 2025, Labubu evolved from a modest 99-yuan collectible to an unstoppable sensation among gen z pop culture fans. Resale prices soared to 2,300 yuan, and the limited Labubu Vans collaboration fetched tens of thousands, turning these spirit dolls into near-mythical treasures. But the craze goes beyond collecting - personalising Labubu has become the real passion. From diamond-studded grills to peachy curves, fluttering lashes to gilded bling, the social media frenzy around toy customisation continues to surge.

Research shows 60% of gen z believes 'toys relieve stress better than socialising.' The viral hashtag 'Gen Z Has Its Own Abbebe/Comforter' captures this emotional attachment, fuelling a booming doll economy where brands like Jellycat breathe life into plush toys - fans name them, create stories, and even take them along on journeys.

From China’s Pop Mart unleashing Labubu globally, to UK’s Jellycat rising in China with playful 'playhouse' campaigns, to domestically produced nostalgic plushies sweeping tier two and thre cities with their 'retro healing' charm - the Kidulting economy (kid + adult) has exploded from a niche to a mainstream cultural force. Driven by adults craving childhood joy, playful experiences, and indulgent non-essentials, this global movement boasts a $2.3 trillion market, with China’s kidult toy sector alone valued at 50 billion yuan.

02: Childhood Favourites Make Waves Again

Every generation treasures its own IPs; while people age, these icons remain eternally young. More than symbols of the past, they have become emotional lifelines for today’s generation - safe havens amid real-world challenges that offer space to express and release pent-up feelings.

Take 'GG Bond,' a childhood hero whose unexpected viral moment cast him as a 'delivery rider' in today’s gig economy. The brand quickly partnered with JD.com, bringing GG Bond to life as a virtual delivery mascot, launching exclusive stickers, skins, and immersive experiences that broke traditional IP marketing moulds.

Another inspired mash-up paired the otome game 'Love and Producer' with childhood animation 'Pleasant Goat and Big Big Wolf.' This nuanced blend, tinted with 'childhood filters,' struck a powerful emotional chord, surpassing expectations.

Meanwhile, the '100% DORAEMON & FRIENDS' Tour brought 117 life-sized blue statues to Shanghai’s streets, inviting adults to step back into their youth through meticulously recreated anime portals - offering magical entryways to cherished memories.

'100% DORAEMON & FRIENDS”'Tour - Shanghai

03: A Journey into Chinese Dreamcore

Chinese Dreamcore art fuses millennial urban memories with vintage relics through lo-fi filters, pixelation, and muted colours - crafting a dreamscape that feels both familiar and surreal. Unlike the Western Dreamcore’s vibrant hyperrealism, Chinese Dreamcore embraces subtlety, grounding itself in collective memory and shared cultural rituals such as old appliances, school computer labs, and Spring Festival traditions.

'Awake now. Welcome to 2000…' Faded photographs flash alongside retro tunes. Scenes of worn neighbourhoods, shoe-caped computer rooms, and cobalt-glass skyscrapers evoke deep emotional resonance. On Xiaohongshu, #ChineseDreamcore content has surpassed 180 million views, while Douyin videos boast over 1.7 billion plays.

Top resale hits on Xianyu’s Dreamcore market include nostalgic CCD cameras, Walkmans popularised by TV dramas, and vintage DV cameras used for artistic videos. Classic gadgets - Subor game consoles, electronic dictionaries, old desktops - are experiencing a fiery comeback, with search interest spiking nearly 200%. This nostalgia wave is driven mainly by post-95 millennials, who represent nearly 80% of these devoted buyers.

04: A Fashion Time Capsule 

The Y2K revival - a digital-era sensation - transports millennials and gen z back to the dawn of the millennium. Born from late ’90s and early 2000s tech optimism and anxiety, this trend melds futuristic vibes with nostalgic throwbacks into a dazzling stylistic fusion.

On 2025 spring-summer runways, fashion titans like Louis Vuitton, Dior, Bottega Veneta, MSGM, Miu Miu, and J.W. Anderson infuse playful, childlike elements into their collections, crafting pieces that strike a perfect balance between nostalgia and modernity - resonating deeply with today’s consumers.

A highlight is Miu Miu’s 2025 spring-summer collection, inspired by the 'baby wardrobe.' Partnering with French children’s brand Petit Bateau, they reimagine simple childhood staples into an expressive fashion experiment on growth and innocence. Pure white dresses, plucked from youthful memories, are reinvented with asymmetrical cuts and layered textures - reviving authentic self-expression.

KFC × SANRIO

BRAND: KFC

CREATIVE AGENCY: DENTSU CREATIVE

To celebrate Children’s Day, KFC teamed with Sanrio to launch six limited-edition toys featuring five iconic IPs - each stylish, functional, and designed to set social media ablaze. Hashtags like #KFCcamera and #KFCSanrio dominated Weibo, as the collectibles sparked a sold-out frenzy and social buzz.

From portable Cinnamoroll water bottles that refresh at a tap, to Pompompurin clap-activated nightlights, Pochacco karaoke mics doubling as phone stands, Kuromi’s sparkling mist stage, and Hello Kitty-themed ambient lamps emitting soothing white noise, this playful line up captured the hearts of kids and adults alike.

This KFC-Sanrio fusion amplifies the unique charm of each character, creating holiday merch that is both innovative and practical - inviting fans to unlock their personal joy codes within this adorable universe, while fuelling sustainable growth of the IP.

Unlock the Kidulting Economy 

The Kidulting economy goes beyond transactions - it’s a cultural heartbeat echoing a collective longing for innocence, joy, and genuine connection. Far from a fleeting trend, it reflects society’s evolving focus on emotional wellness and authentic experiences.

For brands, success now depends on peeling back the surface to understand deeper consumer behaviours and emotional drivers. This marks a shift from merely selling products to delivering meaningful emotional value that truly resonates.

Brand engagement today transcends traditional advertising; it’s about crafting playful, interactive content that invites authentic participation and builds lasting emotional bonds.

Within Dentsu Creative, the dentsu Z team stands out as a group of innovative Zoomers, leading the way in crafting strategic plans and providing solutions for brands. By leveraging cutting-edge technology, they consistently push boundaries to create meaningful cultural experiences. Drawing from their unique perspectives as gen z consumers and young creatives, dentsu Z delivers valuable insights and fosters authentic connections between brands and the next generation of consumers.

Visit the global website and download Unlocking Gen Z 2024: China Focus, presented by the dentsu Z team.