Market insiders say that Chinese consumers' spending on health, culture and entertainment-related products and services may increase significantly during the Spring Festival holiday in early February. They said that the Chinese Lunar New Year Week is the use of this traditional shopping time by companies to promote their brands and sales. The seven-day holiday is marked by family reunion dinners, visiting relatives and friends, and entertainment. In this case, people will exchange gifts bought during the crazy shopping before the holiday.
Such strong consumption has created a peak for marketing and sales, especially for food and beverage companies. Sales of milk, beverages, biscuits, fruits, meat, vegetables, sugar, dried fruits, melon seeds, potato chips and soft drinks tend to peak during the holiday season.
Cinthia Chen, a partner at the Boston Consulting Group, said consumers are also showing preference for imported foods such as seafood and cherries, avocados and kiwis, driven by consumption upgrades and supply expansion.
According to a recent report by market research firm Kantar Worldpanel, the top five categories of shopping during the Spring Festival are liquor and alcoholic beverages, dairy products, soft drinks, nuts, sugar and chocolate. In terms of beverages, each family spends an average of 367 yuan ($54.1).
During the holiday season, consumers tend to buy large quantities of healthy foods such as oatmeal, yogurt, milk and nutritional products to avoid high-calorie snacks. Sales of sugary or high-fat foods such as cheese, sausages and cakes may decree. In fact, sales of only one cake may drop by more than 10%. Chen of the Boston Consulting Group agreed. “Healthy foods are popular among consumers of all ages.”
Chen said retailers are also using innovative, creative and interesting products to attract 90s (they may be building their own homes and careers) with fancy design and marketing support. For example, companies are using online mini-games, red packets (envelopes with traditional cash gifts) or short videos to provide more entertainment.
During the Spring Festival last year, more than 250 million Alipay users worldwide collected five "Fu"(福) characters online. "Fu" means "luck" in Chinese. According to the company, by collecting five Fus, users are eligible for a cash prize of a total of 500 million yuan. Kher Tean Chen, managing director and product industry director at Accenture China, said: "In the digital age, customer focus has shifted from the product itself to the experience of buying or sharing products." according to Kantar Worldpanel, about 630 million consumers enjoyed special offers during the Spring Festival of 2018.
According to Chen of Accenture Consulting, as a consumer, the emerging elderly group (that was, people born in the 1950s and 1960s) can also show considerable purchasing power during the Spring Festival shopping boom, including online shopping.
“They have enough time and money to make decisions quickly.” Companies can attract such consumers through online marketing and encouraging information sharing between acquaintances.