Intangible cultural heritage drives China’s retail evolution

2025 is the Year of the Snake in the Chinese Lunar calendar and the media has been promoting China’s Intangible Cultural Heritage (ICH). This cultural resurgence caught international attention in April when popular American internet celebrity IShowSpeed toured major Chinese cities, including Beijing, Shanghai, Chengdu, Chongqing, Hong Kong, etc. He also made a dedicated trip to Henan’s Shaolin Temple to study martial arts. Through livestreaming, he showcased China’s cultural richness to his global followers, documenting numerous ICH techniques, traditions, and culinary delights.

ICH has emerged as a vital cultural symbol and consumption hotspot in China’s retail market. Data from a leading domestic e-commerce platform shows ICH-related spending surged significantly since 2023, with annual growth rates exceeding 20–40% over the past two years. A wide range of cultural products have become standout stars in China’s online and offline retail landscape. These include Forbidden City IP merchandise, Sichuan opera face-changing dolls, handcrafted folding fans, and the viral Rongchang braised goose, popularised by Speed’s livestream.

Exhibit 1: ICH Sales on A China Leading E-Commerce

Source: Tmall, JLL Research, April 2025

Who favours ICH consumption?

Post-2000s, Gen Z consumers dominate the ICH market, accounting for nearly 50% of cultural and creative product purchases. Older generations show a progressive decline in spending on these items. Surveys reveal that over 60% of consumers prefer ICH-themed everyday items like tableware and calendars. The stationery category, including bookmarks and notebooks, follows as the second most popular. Interestingly, 14% of consumer interest focuses on virtual ICH products, such as digital collectibles and IP collaborations. This trend highlights the growing interplay between traditional culture and the digital economy.

Exhibit 2: ICH consumption breakdown by generations in China

Source: Mob Research, JLL Research, April 2025

Driving forces behind the ICH boom

China’s Gen Z has developed unprecedented national pride and cultural identity during the country’s rapid economic rise, creating a generational shift in consumer behavior. This cultural confidence has shifted focus from international brands towards domestic “Guochao” (China’s homegrown trendy brands), empowering them to gain market share through culturally resonant storytelling. ICH products flourish by tapping into this generational ethos, offering emotional connections that align with the broader trend towards sentiment-driven consumption in China’s retail landscape.

ICH's impact on commercial real estate and retail strategies

China’s commercial real estate sector faces persistent oversupply, compelling operators to reinvent strategies to stand out in a saturated marketplace. An increasing number of operators are adopting ICH-themed IP collaborations to create immersive retail experiences that boost foot traffic. Meanwhile, China’s consumer market has shifted toward valuing experiences and cultural narratives. Brands now integrate ICH into tangible products and experiences, such as heritage-inspired lifestyle items and interactive exhibitions, merging tradition culture with youth-driven storytelling.

This trend is gaining momentum as digital innovations like NFTs (Non-Fungible Tokens) and VR-powered cultural experiences take hold, alongside cross-border influencer partnerships that promote and globalise ICH’s appeal. With the younger generations show increasing interest in local cultural elements, ICH is poised to reshaping global perceptions of Chinese culture through both physical retail ecosystems and digital platforms.