The rise of the cute economy marks a shift for Chinese industry

The so-called “cute economy,” known in China as Meng Jingji (萌经济), describes a consumer trend driven by millennials and Gen Zers who seek a sense of tenderness and emotional well-being in products. Driven mainly by young urbanites and characterized by an aesthetic combining nostalgia and design, the cute economy manifests itself in a wide range of products, from collectible figures and institutional advertising campaigns to themed cafes and museum merchandising, transforming the adorable into a cultural and commercial value. The cute economy is also part of the break with the traditional way of thinking about Chinese industry. For decades, the “Made in China” label was seen as synonymous with low-cost, relatively low-quality products. This paradigm is becoming a thing of the past.  Increased investment in R&D — 2.68% of its GDP in 2024, an 8% rise compared to the previous year — the development of designer products, as well as innovation in technology, robotics, and artificial intelligence, reinforce a narrative that China no longer relies solely on mass production but on the export of technology, IP, and services.  One need only look at the growing participation of robotics at the Canton Fair, one of the world’s most important trade events. In 2025, it featured a section called “Service Robots Zone,” dedicated entirely to robotics and AI. The current emphasis seems to be on showcasing a China that contributes innovation, quality, and sophistication and increasingly emphasizes creativity.  A growing market of cultural consumption There is no bigger player in this market than Pop Mart (泡泡玛特, Paopao Mate). Created in Beijing in 2010, this chain department store is mainly devoted to selling collectible figures known as art toys in a blind box format.  The collaborations with established and emerging artists for the design, coupled with the surprise factor of not knowing what you’ll get and the widespread publicity provided by social media platforms Douyin and Xiaohongshu, have driven a phenomenon that transcends the collectors niche, turning Pop Mart into a true symbol of youth consumption in China. Company creator and current CEO Wang Ning is 13th on Forbes’ China’s 100th Richest, with an estimated wealth of 22.2 billion dollars. Following the rise in art toys and blind boxes, Pop Mart began trading in the Hong Kong Stock Exchange. From there, it expanded its shopping network around the world.  The cute economy’s most representative product is a Pop Mart character known as Labubu. Born as part of a collection known as “The Monsters,” it was created by designer Kasing Lung and inspired by Norse mythology. It rose to stardom when various actors, singers, and influencers began using it as an accessory for luxury handbags. More than just an art toy, Labubu embodies how China turned cuteness into a powerful narrative of pop culture consumption. Pop Mart is not the only example of the rise of this trend. Cosmetics brand Flower Knows (花知晓, Hua Zhixiao) embodies the spirit of the cute economy through its slogan “Live your fairy tale.” Inspired by European Rococo, its products are very ornate, displaying a detailed aesthetic that includes cherubs, swans, hearts, and pearls.  Flower Knows’ theatrical packaging design has made it a coveted brand among influencers. The company capitalized on this via collaboration with makeup artists around the world through its global ambassador program, garnering more than 1.7 million followers on Instagram. Another example of cute products is seen in collaborations with established IPs. The HeyTea chain (喜茶, Xi Cha), known for its bubble tea, signed a collaboration agreement in 2025 with Chiikawa, a very popular anime in China created by Japanese illustrator Nagano, launching special packaging featuring characters dressed in the brand’s uniform, along with a line of merchandise that included mugs and other collectible items.  Previously, Chiikawa had collaborated with another well-known Chinese brand, Miniso (名创优品, Mingchuang Youpin), on a series of joint products that included stationery, household items, and toys. A trend going beyond companies  Big companies are not the only ones resorting to the power of cuteness. Many historical sites and museums began a veritable competition to see who could develop the most memorable and adorable merchandise — a rivalry that is particularly reflected in the creation of museum magnets, which have become true collector’s items.  In China, museums transformed emperors, concubines, mythical creatures, and even architectural details into charming souvenirs. Among them, the Palace Museum in Beijing has established itself as the leading institution in the creation of products inspired by its heritage, reinterpreted with a cute aesthetic. The cute economy’s impact can also be felt in Argentina. You only have to visit the bubble tea shops, which have spread from Chinatown to the rest of Buenos Aires, to see the growth of Chinese cosmetics, especially Flower Knows makeup.  And although Pop Mart does not have stores in the country, original Labubus, imitations, and products inspired by this character can be found in almost all toy stores.  As in China, Argentine Gen Zers are the ones driving the trend through TikTok and Instagram. Perhaps it will be these trend followers who will begin to curiously explore the most creative and surprising facet of this new “Made in China” label.