---
title: "The Underlying Logic of Business Has Changed!"
description: "Emotional value in business refers to the emotional resonance and identification that brands and products evoke in consumers. Understanding emotional value explains why people spend heavily on niche toys or IP products, revealing new business opportunities. The article discusses how brands can leverage emotional value to meet evolving consumer needs."
author: "蔡钰 刘润"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2024-05-10"
language: "en"
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# The Underlying Logic of Business Has Changed!

> Emotional value in business refers to the emotional resonance and identification that brands and products evoke in consumers. Understanding emotional value explains why people spend heavily on niche toys or IP products, revealing new business opportunities. The article discusses how brands can leverage emotional value to meet evolving consumer needs.

What is emotional value? In the business realm, emotional value primarily manifests as the emotional resonance and identification that brands and products evoke in consumers. Once you grasp emotional value, you can understand why some are willing to spend a fortune on niche toys or IP products, and even spot business opportunities within.
**From Functional Value to Emotional Value**
**1. What is Emotional Value?**
**Liu Run:** What is emotional value? Why should we understand it in 2024?
**Cai Yu:** I first heard this term from friends in psychology, who used it to explain emotional exchanges in intimate relationships. **I believe emotional value is essentially a person's influence on others' emotions, and this ability has practical value.** For instance, when interacting with friends, if we feel joy, calm, or gain new insights, we receive positive emotional value. **The uniqueness of emotional value lies in its positive-sum nature: positive emotions can lead to more positive outcomes.** Conversely, we should avoid those who constantly transmit negativity or use us as emotional dumping grounds, as they are releasing negative emotional value.
**Liu Run:** How can we apply emotional value to business?
**Cai Yu:** I have a personal insight: **once value is assigned positive or negative attributes, it can become a tradable commodity. Why?** Around 2016, China entered a new consumption era, with the first batch of new consumer brands emerging. Analyzing this wave of new consumption, we see significant differences from the past three to four years. While China had many domestic brands before, they were often seen as substitutes for big brands. However, from 2015 to 2016, new consumer brands like Genki Forest, Satuday, and Perfect Diary leveraged China's vast and complete supply chain but injected differentiated value—emotional value. Specifically, these brands used unique marketing strategies to craft distinct brand images, breaking away from the traditional "substitute for big brands" role, offering deeper emotional satisfaction, such as national pride. As I delved into this phenomenon, I gradually formed my own perspective on business: **by providing emotional resources to meet others' emotional needs, one can commercialize emotional value.** For example, suppose I need a chair for basic sitting and lying. The chair's appeal lies in its function, which is its functional value. Based on this, I might pay 50 yuan. Next, if I want more comfort, I might spend 200 yuan on a sofa—that's the sofa's functional value. Now, when a chair is not just a daily item but a piece of art, like one hand-carved and signed by a master, limited edition, it transcends basic function and carries special emotional value. Such a chair might sell for 2000 yuan. This price increase is driven by its emotional value. **This emotional value stems from its uniqueness, scarcity, and the special emotions it carries.** You see, the price increase isn't solely determined by function but by the emotional resonance it triggers.
**Liu Run:** You remind me of something. Recently, I had an item shipped from my hometown to my home—an iron ladder. It's not an ordinary iron ladder; in my childhood, we lived in a cramped single-story house. To give my brother and me more space, my parents built a simple shed on the roof. The ladder connecting the ground to that shed was welded from iron pipes. **So, every day we had to climb this ladder to reach our rooftop home, until I finished university.** Recently, my hometown faced demolition, and many items had to be discarded. When I learned the iron ladder was still there, I insisted on keeping it and having it shipped to me. To others, it may seem worthless, but to me, it carries deep emotional value.
**Cai Yu:** Indeed. That ladder is not just an object; it symbolizes your youth and memories of your hometown. You're willing to pay high shipping costs to find that indescribable sense of belonging.
**Liu Run:** Yes, I feel it's totally worth it. When assessing value from a functional perspective, it's sometimes hard to make clear judgments because the same item can have vastly different emotional value for different people. **For example, diamonds are seen by many as precious symbols with specific meanings. However, from a scientific standpoint, diamond is essentially a form of carbon, no different from graphite.** This difference reflects people's varying perceptions of emotional value.
**2. More People Are Willing to Pay for Emotional Value**
**Cai Yu:** In recent years, I've observed a significant market shift—more people seek validation from strangers online. This trend often simplifies our personal emotions to fit mainstream aesthetics or dominant views when seeking collective recognition online. For instance, expressing love for national brands online often gets reduced to a few keywords. However, **this simplification overlooks the complexity and depth of personal emotions.** When we express opinions online, we may gradually lose authentic self-expression, leading to mental exhaustion. Moreover, **with the rapid development of the internet and social networks, people's emotional needs are expanding rapidly.** In this context, manufacturers and suppliers strive to win consumers, and consumers' personalized, emotional needs become increasingly prominent.
**Take dining as an example: modern people go out to eat not just to satisfy basic hunger—functional value.**
**Liu Run:** Right, filling your stomach and filling your phone camera. Taking photos of the meal, editing nine pictures, and posting them on social media might account for a large part of the meal's value.
**Cai Yu:** Another example is Haidilao's service model, which provides an emotional experience beyond basic needs, allowing consumers to feel more emotional satisfaction during service. More and more consumers are willing to pay for this emotional value.
**Failing to Grasp Current User Emotions**
**Brands May Face Backlash**
**Cai Yu:** Recently, a dispute between an automaker and Xiaomi drew widespread attention. This automaker clearly didn't fully consider the importance of emotional identification in handling its relationship with Xiaomi. They made some comparisons publicly, which was not only unwise but could spark more controversy. More notably, when launching products, they tried to win emotional resonance by showing users their investment and sacrifice. They emphasized employees missing their child's birth for R&D, sending children to daycare early for work, or even working while seriously ill. They hoped to tell consumers they'd do anything for them. However, they seemed unaware that such storytelling might evoke different feelings. Consumers might put themselves in the story's roles. I think this touches on two key taboos: **First, they didn't clarify the role users should play in the story, preventing consumers from fully engaging and resonating. Second, they didn't clearly define their relationship with consumers, making it hard for them to understand and accept the message.** Especially now, when consumers haven't explicitly expressed willingness to cooperate, presenting a pitiful image may make them uncomfortable. They're more likely to empathize with struggling workers, like employees who worked despite four COVID infections or children who never saw their fathers. These figures resonate more than the roles you set. Even if we assume consumers are willing to adopt your roles, they don't want to hear stories that induce guilt, like missing a good friend's funeral or cutting ties with in-laws. Such stories may make consumers feel exploited and turn against you.
**Liu Run:** I think they wanted everyone to empathize with that role, but after empathizing, people went to another role. So, when trying to proactively provide emotional value, there are subtle points. **In the current social environment, public emotions are particularly complex and volatile, like a torrent, constantly changing at high speed.** I recently invited two young people to Shanghai for my interview program. Through conversations, I deeply felt generational differences and different understandings of social emotions. We found that people's emotions are about maintaining emotional consistency with others. This expectation isn't malicious or negative but a universal psychological need. For example, when seeing others maintain healthy diets and regular exercise, some may feel envy or jealousy because they can't meet those standards. **This emotion is not uncommon in today's society; it reflects a natural reaction to differences between oneself and others.** This helplessness evokes my sympathy and makes me realize that changes in social emotions aren't baseless but have deep social backgrounds and realistic foundations.
**Cai Yu:** Yes, this has become a claim, an attitude demanding legitimacy. Looking back over the past five years, we can see this change. For instance, when we want to release pain or express negative emotions, these aren't topics we're willing to discuss publicly. Instead, we prefer to confide in a hidden corner privately, like finding a tree hole. Now, we generally believe that **the emotions of the weak deserve respect and comfort; they should be seen, acknowledged, and understood.**
**Liu Run:** Indeed. In reality, everyone exists between strength and weakness. **Sometimes, some people may have to make certain choices due to life's pressures. However, when these people think they're great in such situations, this self-inflation often triggers others' resentment.** Therefore, at such critical moments, it's even more important to maintain clear self-awareness and avoid excessive complacency. **Those who can stay grounded and return to ordinary life are often better adapted to current social emotional changes.** I believe this humble, pragmatic attitude is urgently needed in our society. I also notice a gradually strengthening emotion in society. Initially, I couldn't describe it, but after deeper observation, I found it seems related to our changing views on things. What we once thought right, some now feel tired of; what we thought not quite right becomes less important. **This change may reflect the evolution of social emotions, requiring deep thought and understanding.** You mentioned the word "hole," and I think I'm like that. We talk about rules—what are rules? They're constraints set by the previous generation of successful people; we should break all these rules. I'm starting to understand things I didn't before. I found a word: "anti-hero." Have you noticed? Recall Marvel movies we watched before; their heroes were flawless, like Iron Man and Captain America. However, Marvel's recent films like Venom and Deadpool differ from traditional heroes; these characters have more complex and realistic personalities, not flawless heroes. **This phenomenon is called the "anti-hero" trend.** The film industry has keenly captured this trend; people crave heroes who can break conventions for them. These heroes need not be perfect; they can be ordinary people with flaws and shortcomings, **but as long as they bravely stand up, challenge rules, and fight for justice, they become heroes in people's hearts.** This emotion is fully reflected through their images, also reflecting a certain need in current society. We should also recognize that whether weak or strong, when facing survival choices, we need to maintain humility and self-reflection, avoiding excessive self-promotion and arrogance that cause others' resentment. At such times, we should see our position clearly, return to real life, and stay grounded. I think this might be a very important aspect of current social emotions. For example, in the movie "The Pig, the Snake and the Pigeon," the protagonist Chen Guilin does relatively just things and becomes a hero, but he committed murder, so he has flaws. **Modern people have undergone significant emotional changes regarding this, so someone needs to step up to guide them; the emotion of breaking rules and defying discipline must be curbed.** This is my most obvious feeling about emotional value.
**Implications of Emotional Value for Brands**
**1. Brands Must Beware of Social Emotional Backlash**
**Cai Yu:** In my book "Emotional Value," I also delve into important considerations for commercial brands and manufacturers when managing brands and products. In my observation, **commercial brands and manufacturers need to pay attention to two points: First, avoid tearing local emotions; don't over-manipulate user emotions, causing social emotional disharmony. Second, prevent social emotional backlash; don't let improper behavior negatively impact the brand.** In some cases, brand strategies overly reliant on specific emotions may trigger public disgust, harming the brand itself. **For example, some companies try to win markets by playing the nationalist card, but sometimes this strategy can backfire, causing nationalist sentiment to rebound and adversely affect the brand.** Are there brands that do this well? Yes. Nike is exemplary in emotional management, skillfully crossing different thinking barriers. Although in some aspects, like choosing marketing spokespersons or product designs, Nike may cater to certain Western political correctness, from an overall brand value perspective, they consistently uphold the stance of paying tribute to sports heroes and the spirit of sports. This strategy avoids making enemies and makes the brand safer and more enduring. It also helps promote social consensus and has a positive impact on society as a whole. **Therefore, deeply researching and mining emotional value in today's business world is particularly important.** When a company expands outward, **it should fully consider and tap into emotional elements in local culture and civilization to stimulate new national identity.** This not only enhances domestic market competitiveness but also attracts more attention in overseas markets.
**Liu Run:** Yes, everyone needs to catch up. In different historical periods or regions, due to unique backgrounds, people's emotional expressions often differ significantly. Recently, I've noticed a trend: more people are rereading the Tao Te Ching. This reminds me of a saying I heard about 15 years ago: "In prosperity, Confucianism; in adversity, Taoism; in desperation, Legalism." The deep meaning is that **in different social contexts, people's needs and emotions differ.** Therefore, interpretations and pursuits of order also differ. In prosperous times of economic growth and social progress, people tend to follow Confucian moral etiquette, which regulates behavior, clarifies roles and responsibilities, and enables harmonious social development. At this time, **business methods and ethics become key factors determining how far a company or individual can go.** Business ethics, to some extent, reflect this order framework. **However, when society falls into adversity and the original Confucian order can't effectively address challenges, people begin seeking new paths.** Some may choose to break existing rules, adopting more flexible and practical approaches; others may turn to Taoist thought, seeking inner peace and harmony, believing life's value lies in enjoying each moment rather than pursuing distant goals. **When society falls into desperation, with chaos and crises, Legalist thought may dominate.** In such contexts, strict laws and order become necessary means to maintain social stability and security. Thus, social emotions vary across historical stages and regions, depending on the challenges and needs people face. What people pursue as "right" and "useful" in different periods is based on their specific environments and situations.
**Cai Yu:** Indeed. For example, 10 years ago, people listened to Phoenix Legend and thought it was rustic, "agricultural heavy metal." Today, listening again, they feel a sense of national peace and prosperity. This is because in today's volatile and complex world, stability and tranquility have become especially precious. **Therefore, for entrepreneurs and successful big brands and enterprises, deeply researching and understanding the context of the times' emotions is crucial.** Only by mastering this basic mechanism and analyzing it in specific contexts can one find their position in new opportunities. Furthermore, if one can distill unique emotional touchpoints in their brand that transcend time and circles, such a brand will undoubtedly have strong influence and appeal.
**2. Brands Must Provide Unique Emotional Value**
**Liu Run:** I'm personally weak in emotional resonance. For a product, I often talk about its materials, efficacy, etc., saying it's not worth the price, feeling like a "IQ tax." But sometimes I don't realize it satisfies another kind of value.
**Cai Yu:** Indeed, as President Run mentioned the concept of IQ tax, I have some personal views. In life, we may all encounter misunderstandings or doubts. Regarding whether buying a product involves an IQ tax, I'd like to offer a perspective. The IQ tax concept can be divided into two types. **The first is the IQ tax we commonly understand: the cost paid due to information asymmetry.** For example, when buying insurance, if consumers don't understand the product's true nature, they might mistakenly buy it as an investment product when it's actually a small insurance policy. This mispurchase due to information asymmetry is a manifestation of information gap. However, sometimes consumers pay a normal price for goods or services, but their real need isn't just the practical value but a specific feeling or experience. Those who criticize others for paying an IQ tax often spend a lot of time and energy identifying what is and isn't an IQ tax, striving to find the best value-for-money products or services. **What they're buying isn't just the product or service itself but the pleasure of being smarter and more insightful than others.** Let's look at another example. When buying high-tech products like nano-ion longevity beds, if consumers seek their special functions or effects, such consumption shouldn't be considered an IQ tax. But if consumers buy solely for celebrity effect or emotional attachment, then it might be considered an IQ tax. Thus, these two situations are fundamentally different.
**Liu Run:** So, can we say that the four characters "emotional value" equal "IQ tax"?
**Cai Yu:** I don't think so. I believe **emotional value can be seen as a "feeling tax."** That is, when I feel I've gained satisfaction or pleasure, I'm actually paying a price for that emotion.
**Liu Run:** Yes. If you know the factory price of a luxury brand's bag but still choose to buy it, you haven't been deceived. What you're truly purchasing is the envious glances from others when you carry it on the street—that psychological satisfaction. **For brands, how to effectively create and provide value beyond the product itself is a question worth pondering.** Take Moutai as an example. In my interview with Mr. Wu Xiaobo, he mentioned Moutai's cost structure. Moutai's main raw materials are only sorghum, wheat, and water, with total costs not exceeding 20 yuan. However, Moutai's market price is much higher, like Feitian Moutai at 2000 or even 3000 yuan. Using emotional value theory, this price difference mainly stems from its emotional value. Because Moutai on the dining table not only represents the quality of the liquor but also the host's sincerity and respect. In 2024, when competition in basic functional value reaches a certain level, brands need to think about how to provide unique emotional value, which will become an important direction for product development and market competition.
**Cai Yu:** Let me give another corporate example—Fu Shou Yuan, a leading private funeral service provider in China. They integrate emotional value concepts into products and services, offering users richer and more meaningful experiences. For instance, in current social customs, when we bid farewell to the deceased, we typically follow traditional memorial ceremonies. However, they chose a more humane and individual-respecting approach—a remembrance meeting. This change isn't accidental but based on deep understanding and respect for user needs. They understand that although we're bidding farewell to the deceased, the real users are the friends and family suffering the loss. By changing traditional ritual requirements, they allow people to express more emotions in the remembrance meeting, not just grief. This change makes both the living and the deceased feel respect and understanding, rather than the traditional, rigid "the deceased is paramount" concept. This change is actually an elevation of respect and understanding for people. It no longer treats the deceased as a center around which everything revolves but as a person with rich emotions, experiences, and stories. It also gives the living more space and time to express their longing and remembrance, to experience and feel the pain of losing a loved one. **This change is an improvement and innovation on traditional customs, more aligned with modern people's emotional needs and values.** Also, their burial ceremonies are very thoughtful. In one of their cemeteries, they held a burial for a veteran of the People's Liberation Army. They sent people to every place the veteran had fought, collected a handful of soil, and brought it back to accompany him in eternal rest. Such a heartfelt gesture is admirable. Another touching detail is in the burial segment. They invited a group of the veteran's subordinates to stand aside and play the taps. For those who served in the military or have military friends, this sound has special significance. It's the bugle call for soldiers before lights out, marking the end of the day. When this sound plays, everyone present feels respect and emotion. This undoubtedly enhances people's sense of belonging and existence.
**Liu Run:** In summary, **many people misunderstand emotional value by treating functional value as a necessity and emotional value as optional. In fact, emotional value is sometimes the real necessity.**
**Recommended Reading**


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