The term "Guzi", deriving from the realm of otaku culture, serves as a phonetic translation of the English word “Goods.” This expression primarily refers to merchandise associated with various two-dimensional intellectual properties (IPs) like comics, animation, and video gamesA rising trend among the youth illustrates a growing fervor for collecting such merchandise, which subsequently gives rise to a significant market demand that has drawn considerable attention

Data indicates that China’s two-dimensional culture and its ancillary markets reached an astonishing 221.9 billion yuan in 2023, with the merchandising segment alone contributing to a remarkable 102.4 billion yuan of this figure

Forecasts predict that by 2029, the scale of the two-dimensional industry will expand to approximately 590 billion yuan, reflecting a compound annual growth rate of around 18%.

In the A-share market, stocks within the “Guzi economy” category have displayed both volatility and a degree of divergence after a period of steady growthCertain stocks continue to exhibit robust strength, with companies like Chuangyuan Coand Deyi Cultural Creativity frequently enjoying active tradingThis phenomenon can, in part, be credited to the rising popularity of two-dimensional culture and the increasing consumer appetite for related merchandise

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However, some stocks have experienced pullbacks, possibly influenced by factors including market sentiment and the prevailing macroeconomic climate.

Behind the Consumer Frenzy and Its Hidden Perils

The industrial chain of the Guzi economy encompasses a wide variety of components, including IP creation and incubation, licensing and management, derivative product manufacturing and sales, as well as content distribution and platform strategies

As two-dimensional culture becomes more mainstream and influential, many IP holders seek to augment their revenue streams by licensing the production and sale of related merchandiseFurthermore, the limited-release nature of Guzi products adds a layer of collectability, attracting numerous collectors and investors looking to get in on the booming market.

The business model of the Guzi economy showcases a broad array of characteristics. Beyond traditional retail channels such as physical stores selling Guzi products or trading card shops, online platforms like Xianyu have also emerged as significant venues for Guzi transactions

Additionally, several companies utilize social media and short video platforms for effective marketing and promotion strategies.

Surveys have shown that the primary demographic driving the consumption of Guzi products consists of individuals born in the 1990s and 2000s, with many reportedly spending over a thousand yuan per annum on GuziIn response to the booming demand, commercial districts are increasingly integrating Guzi shops into their retail mixAccording to statistics from Zhejiang Merchants Securities, more than 60 key commercial districts in first and second-tier cities across China are actively developing landmarks that cater to the two-dimensional consumer market.

However, this phenomenon has not come without its complications

The rise of the Guzi economy has been associated with concerns about social issues like addiction and overspending among minors.

Purchasing Guzi often resembles buying stocks, as various factors, including scalpers, counterfeits, and limited editions, can sway the market pricesThe introduction of blind boxes exacerbates this issue, leading to volatility in product valueIn attempts to acquire preferred characters or designs, collectors may find themselves purchasing entire boxes of products, which can easily exceed a thousand yuan— a notable financial burden for many teenagers, often resulting in impulsive spending

Some retailers even go to the extent of posting signs inside their stores, advising that minors must be accompanied by parents when purchasing blind box products.

What Are They Buying?

Some enthusiastic members of the Guzi community express that the amount they purchase symbolically correlates with their affection for specific characters, a phrase in the community known as “displaying culinary power” suggests that expenditure serves as a metric for one’s admiration

Yet, is this truly the case?

Psychological counselor Lu Jing points out that the enthusiasm surrounding Guzi mirrors a game of “control” for individualsWhen a desirable outcome is achieved through the purchasing process, one experiences an immediate sense of certainty and excitement

“This creates a thrilling experience, noticeably invigorating the heart, and essentially satisfying that deep-seated craving for control over unpredictable matters.”

Lu Jing further opines that both purchasing merchandise and obtaining blind boxes serve to fill a void within individuals’ lives that lack fulfillment, often unconsciously indicating deeper-seated deficienciesThis sentiment is particularly prevalent among teenagers, who are navigating rapid physical and emotional changesShe advises her clients to reflect on their lives instead of fixating on quitting these habits and to identify what exactly has been lost within that perpetual drive to consume.

Relevant stakeholders assert that there exists a palpable demand for entertainment, gaming, and social interaction among younger demographics