Amidst China’s economic downturn and weak traditional consumption, recently, Ragdoll dolls, gold jewelry, and milk tea have become new favorites among young people, driving the stock prices of three companies listed in Hong Kong to soar. Experts interviewed pointed out that this trend is driven by three forces, shifting from bulk assets to “emotional consumption,” as young people seek a sense of presence and emotional comfort, revealing deep-seated anxieties in society.
The so-called “Three Golden Flowers” refer to three companies: Bubu Mart, a manufacturer of Ragdoll dolls, the traditional gold jewelry brand Lao Pu Gold, and the affordable tea brand HEYTEA, which have shown remarkable performance recently with their stock prices surging.
According to a report by The Wall Street Journal on July 18, Lao Pu Gold has seen its stock price soar by over 250% in the Hong Kong stock market this year, reaching a market value of $19 billion; HEYTEA’s stock price has doubled since its listing in March, with an estimated valuation of around $24 billion; and Bubu Mart’s stock price has risen by nearly 180%, surpassing a market value of $42 billion.
These three companies, known as the “Three Golden Flowers,” have become indicators for analysts to observe the “new consumption pattern” in China. The Hang Seng Index has also risen by 22% this year, with the outstanding performance of the “Three Golden Flowers” contributing significantly to the overall index.
American economist Davy J. Wong, in an interview with Dajiyuan, stated that the shift in consumer habits from savings and property purchases in the past to immediate consumption of dolls, jewelry, and milk tea reflects a “shift towards emotional consumption” among young Chinese people, responding to increasingly severe economic and socio-political pressures.
Wong analyzed that these products share common characteristics, such as being easily spread on social media (like dolls and milk tea cups), having therapeutic and emotional value, controllable prices, and providing cultural and identity recognition.
He explained, “This is a shift in consumer focus from bulk assets like real estate and appliances to consumer-oriented, immediate gratification products.”
Wong further proposed that the new consumer trend in China is driven by three forces.
Firstly, changes in population and social structure: the emergence of the Z generation and a society trending toward singleness have shifted consumption from traditional family-oriented purchases (like buying houses and appliances) to “self-oriented, instant gratification consumption.” Young people who cannot afford homes and children choose to reward themselves with milk tea and dolls.
Secondly, there is uncertainty about the future and compensatory psychology. Wong explained that high unemployment rates, a sluggish housing market, and a lack of social security have made young people lose faith in long-term investments for stable returns, and “Nowism” has become the guiding principle of behavior. He believes that this is not luxury but a proof of the emotion of “I am still alive.”
Furthermore, Wong observed that this consumption trend integrates Chinese culture with the influencer economy. HEYTEA’s milk tea, Lao Pu’s gold jewelry, and Ragdoll dolls combine social marketing with local aesthetics, creating a strong sense of participation and cultural belonging, making consumption an extension of identity, feeling that “participating in this trend means not being left out.”
According to Hua Daily, Bubu Mart has established a closed-loop system of “collection-socialization-re-purchase” through blind boxes and IP characters; HEYTEA attracts a large young demographic with ice cream and drinks priced at less than $1, opening over 46,000 stores in China and breaking into the fiercely competitive tea market.
Meanwhile, Lao Pu Gold has seized market share from foreign jewelry brands by blending traditional totems with Chinese aesthetics, selling over 200,000 pieces in six months on Alibaba’s e-commerce platform alone.
Although some analysts categorize this phenomenon as the “Lipstick Effect” in an economic downturn period, Wong proposed a different perspective, stating that this is not just a reactionary response to cyclical stress but a social psychological alternative consumption pattern arising from the collapse of intergenerational faith.
The “Lipstick Effect” is an economic phenomenon where sales of low-cost luxury items like lipstick increase during a recession or financial crisis.
Wong bluntly mentioned, “The government’s strong promotion of subsidies for appliances and cars has not truly boosted consumer confidence.” Instead, these products with emotional and cultural attachment have become the few exports that can genuinely stimulate the desire for consumption.
He pointed out that when traditional values like marriage, property ownership, and striving lose persuasive power, Bubu Mart’s dolls are no longer just toys but tradable cultural assets known as “mini financial derivatives,” while HEYTEA is not just a beverage but a community ritual of collective participation and shared memories.
He believes that these products no longer carry mere functionality but represent an alternative spirit and social connection.
In response to the phenomenon of “new consumption,” securities and financial analyst Mr. Adam Lu, in an interview with Dajiyuan, indicated that the current craze not only does not signify economic recovery but also reveals deep-seated anxieties within society.
“This is not a recovery but an escape. This is not fashion but desperation,” he wrote in his response. Ragdoll dolls, gold necklaces, and milk tea are the final consumer outlets for young people in China in a seemingly hopeless life.
Mr. Lu believes that the Chinese Communist authorities use terms like “consumption upgrade” and “new national trend” to mask the reality of draining family savings due to high housing prices, uncontrolled unemployment rates, and the collapse of social trust. In reality, young people are seeking psychological comfort with “cheap yet emotionally intense” products. he boldly stated, “Consumption has become an escape,” he added.
“Buying dolls is about feeling needed; drinking milk tea is for momentary sweetness; wearing a gold necklace is a confirmation of a bit of presence,” he wrote. “The heat of new consumption is merely because people cannot find another way of living.”
“When young people do not buy houses, marry, or have children, choosing to place all their energy into dolls and milk tea, what we see is not decadence but a silent protest against the system’s defeat,” Lu cautioned.
He further warned, “When a society can only maintain surface stability through bubble milk tea and blind boxes, the system itself is the greatest crisis.”
The fervor of the “new consumption” phenomenon in China has indeed propped up impressive numbers and a capital boom in some industries. Yet, beneath all this noise lies a sense of unease about the future, anxiety about reality, and a complete farewell to past beliefs.
Interviewees believe that this is not just “lipstick in a recession” but a generation of young people using dolls, milk tea, and gold to piece together their dwindling “sense of existence” in Chinese society.