Gen Z Drives Asian Heritage Products to US$58B Market
Gen Z consumers transform heritage products into a $58B market through authentic cultural integration. Chinese brands like Moutai and HEFANG outperform competitors by blending tradition with contem...
Gen Z consumers across Asia have transformed heritage products into a US$58 billion market, with China's guochao (national trend) movement generating this figure on Alibaba in 2023 alone, representing a 220% increase from 2020 levels. The shift marks a fundamental change in how younger consumers view traditional cultural elements, moving from preservation artifacts to active purchasing choices that blend heritage with contemporary lifestyles.
The commercial transformation reflects changing consumer attitudes. Among Chinese consumers under 30, preference for products with cultural elements jumped from 42% in 2018 to 78% in 2024, according to research from Dentsu. This demographic now views domestic brands as equal or superior to foreign competitors, with 82% holding this perception and 75% sharing local heritage brands on social media compared to just 33% for foreign labels.
Cross-Category Expansion Drives Revenue Growth
Chinese brands have successfully monetized heritage through product diversification beyond traditional categories. Moutai, the baijiu alcohol brand, expanded into chocolates, ice cream, coffee, and fashion collaborations to capture Gen Z consumers. However, a Coach-Moutai collaboration failed due to tokenism rather than authentic cultural integration, illustrating the risks of superficial heritage application.
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HEFANG Jewelry reports that 60% of buyers are post-00s Gen Z consumers, attracted to modernized Chinese wedding motifs and traditional hairpin designs. The brand has disrupted Europe's jewelry market with heritage-infused products that reinterpret traditional symbols for contemporary use.
CHAGEE, a Chinese tea brand, derived 90% of Malaysian sales from Gen Z consumers and operates more than 800 stores rivaling Starbucks in scale by reinterpreting traditional tea culture through contemporary aesthetics. Fashion brand ZHIZHI sold more than 200,000 units of its Phoenix Revival jacket in 2023 by fusing Tang Dynasty embroidery with streetwear designs.
Authentic Integration Outperforms Tokenism
Successful heritage monetization requires consistent application across products and communication rather than one-off collaborations. ICICLE, a Chinese fashion brand using yak wool and plant-dyed silks, achieved 40% year-over-year revenue growth in Europe while allocating 15% of revenue to ancient textile preservation, demonstrating that authentic heritage investment creates competitive differentiation.
Lay's Find Your Flavor campaign in China engaged more than 200 million young migrant workers through regional hometown flavors, generating four billion views, over 600,000 user-generated content videos, and more than 800,000 Douyin followers while rising to number two in brand voice charts. The campaign successfully monetized nostalgia by connecting traditional regional flavors to Gen Z's emotional connection with heritage.
Anta Sports surpassed Nike in China by integrating dragon motifs and traditional cultural symbols into sportswear, capitalizing on Gen Z's preference for heritage-infused products. Florasis, a Chinese cosmetics brand, succeeded in Japan's mature beauty market by integrating Eastern Asian aesthetics and heritage-inspired innovations.
Regional Variations Show Distinct Approaches
Southeast Asian brands use different strategies to monetize heritage while competing against Korean beauty and fashion dominance. Wardah, an Indonesian halal beauty brand rooted in traditional Muslim values, shifted to micro-influencers with 1,000 to 100,000 followers for authentic content, driving online traffic, engagement, and brand loyalty among Gen Z by blending heritage with modern skincare innovation.
Gabar, a Myanmar-rooted unisex fashion brand, grew revenue by emphasizing sustainability, self-expression, and heritage via TikTok and Instagram micro-influencers, outperforming global competitors in Southeast Asia among Gen Z consumers. Research shows that 51% of Gen Z prefer micro-influencers for brand discovery and engagement over traditional celebrity endorsements.
The National Museum of Korea recorded approximately 6.5 million visitors in 2025, its highest annual figure ever, by emphasizing experience over explanation. Museum merchandise including heat-reactive soju glasses and incense sets shaped like traditional Korean kitchen hearths sold out immediately, while a collaboration with Korea's national baseball team featuring traditional patterns resulted in instant sellouts.
Louis Vuitton in China incorporated lettuce, a prosperity symbol via wordplay, and jade pendants for luck and protection into store displays and products, adapting luxury marketing to traditional Chinese cultural symbols for Gen Z consumers. Molly Tea collaborated with Lingshun Temple to create products featuring Caishen, the wealth deity, demonstrating how brands monetize spiritual and mystical cultural symbols.
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