Gen Zs in China retreat from Q4 splurging amidst spending slump

Gen Z splurging slid by 14 points as country’s consumers tighten budgets.

Splurge behaviour amongst the Gen Zs in China declined in the fourth quarter (Q4) of 2025 as it slid 14 percentage points compared to last year, McKinsey & Company found.

Despite the decrease, it remained the most likely demographic to splurge, the consulting firm said in its Asia-Pacific consumer sentiment survey. 

It also said that the behaviour has declined across generations in China during Q4, as their intent to spend in discretionary categories, such as accessories, furniture, and cruises, amongst others, remains down.

About 40% of respondents from China in the McKinsey survey said that they intend to spend less on accessories in the next three months, compared to 20% in India and 42% in Australia.

About 45% of respondents from the country intend to cut spending on furniture in the same period, compared to 41% in South Korea and 23% in India.

About 48% of China respondents said that they will lessen spending on cruises, compared to 14% in India and 38% in South Korea.

Citing World Bank data, McKinsey said that even with inflation hovering near zero, China consumers are remaining cautious and tightening their discretionary spending budgets.

Despite this, total retail sales in the country increased by 4.3% year on year from January to October 2025, McKinsey added, citing data from China’s statistics bureau.