Chinese New Year
China has two Golden Week holidays – the Lunar New Year in January or February, and the National Day week in October. Both are barometers for Chinese private consumption, due to gift-giving, family reunions, tourism and retail.
The Lunar New Year marks the day of the turn of the traditional Chinese calendar. It begins on the new moon and this year it falls on 25 January. Chinese New Year’s Eve and the New Year’s Day are traditionally followed by two weeks of festivities, referred to as Spring Festival. The festivities culminate in the delightful and emblematic Lantern Festival. The holiday is associated with different customs and traditions. During this time of celebration, it is common for people to give small gifts to friends and family. And that’s in addition to the red envelopes with a symbolic amount of money that usually older people give to younger people.
Chinese New Year is the most significant holiday for the Chinese people. Entire families get reunited and for most of them this only happens once per year during this period. The majority of people live in the big cities, far away from their families.And they want to indulge them with nice gift packages filled with different special treats. Weeks before the holiday people start preparing nianhuo – traditional Spring Festival goods. A part from these, in the recent years it has become more and more popular for people to buy imported snacks and beverages, nicely packaged specially for the Spring festival as gifts for their friends and relatives.
Stats, expected volumes and trends
No retailer can afford to miss the unique opportunity that the Spring festival presents. A substantial number of consumers (around 1,4 billion people globally) believe that the Chinese New Year is a time for new beginnings, and more specifically, new things. China is one of the fastest growing and evolving markets. And the Spring festival is indeed a golden opportunity for brand owners to expand their business in China, especially online.
A survey showed that in 2019 consumers in China spent an average of 791 yuan on snacks during the New Year holiday. That accounted for 40 percent of full-year consumption. Sales of snacks grew nearly 4 percent year-on-year during last year Spring Festival. Market insiders expect to see similar growth this year as well (RMB 1.10 trillion expected in consumption in 2020). The two-week Festival represents a peak season for the fast-moving consumer goods industry, with a focus on e-commerce.
Chinese New Year 2020: expected sales volumes and trends
E-commerce platforms such as Tmall, JD and Womai, have launched Spring Festival shopping carnivals. They offer discounts on holiday treats such as snacks and beverages. Some online platforms offer “buy one, get one free” deals. While others offer deep discounts on large purchases. Cross-border shopping also continues to be a growing trend among Chinese shoppers. Popular product categories, a part from snacks and beverages, include personal care products. With the latest big trend of livestreaming, offering personal care and beauty products on special prices for the holidays can really boost a product or even a whole brand.
BrandHouse is a service provider facilitating cross-border sales to China on behalf of FMCG brand owners. If you want to know more on how to expand your business in China, contact us at firstname.lastname@example.org.