Chinese New Year: capturing the golden audience
Chinese New Year is one of the three key mass market events of the year for Chinese consumers in the UK and worldwide. Due to the sheer scale of the event and the huge boost to the economy, British brands are increasingly recognising the need to mark this important occasion.
In 2019, Chinese consumers splurged 1.01 trillion yuan ($149 billion) in restaurants, malls and online shopping during the week-long holiday in China. In the UK, this retail-oriented opportunity attracts 38% year-on-year growth in e-commerce orders according to Rakuten marketing 2018 and Visit Britain expects visitors around this holiday will spend £1 billion in 2020.
It is clear that the Chinese consider the UK an attractive place to visit and live. Flight bookings to the UK over Chinese New Year from Chinese tourists were up by 24% in 2019, and China sends more students to study in the UK than any other nation[1Shopping is a key tourist attraction. Figures show that four of five Chinese tourists prefer shopping instead of cultural activities while in the UK. Add to these, those travelling on so-called golden visas: wealthy Chinese citizens happy to lay down significant sums on premium brands who appear to have a passion for UK luxury brands. This scenario has led luxury brands to launch Chinese New Year themed limited-edition products, attracting the attention of wealthy western and Chinese consumers. Some examples of this are Gucci and its playful ‘year of the rat’ Mickey Mouse Disney Collection; Burberry ‘Joy, health & Happiness’ channeling the vibrant colors and prosperity message; Louis Vuitton’s Tambour Horizon Smartwatch series 2020; and Selfridges creative campaign developed by the renowned director and photographer, Jin Jia Ji. British brands are increasingly needing to consider Asian retail trends when speaking to this important target. In China, gamification as part of the in-store experience for mass brands and interactive displays are both key trends currently. Engagement on social media and websites seems to be the key for this audience.
In short, Chinese New Year is an opportunity for western brands to innovate. However, care is needed: this audience is sensitive to stereotyping, yet yearn to see their cultural events acknowledged by the brands they identify with. Chinese premium buyers choose brands with unique story: heritage, craftmanship and limited production lines. This search for uniqueness can be applied to the whole communication spectrum, especially with the irruption of gen-z. A clear example would be the Alibaba advert for Chinese New Year 2020 featuring a same-sex couple. This was a small but significant win by China’s LGBT community that has gone viral despite the government censorship. The public response proves that success comes from brands showing they care and when brands harness the meaning of culture.
[1] UK Council for International Student Affairs: https://www.ukcisa.org.uk/Research--Policy/Statistics/International-student-statistics-UK-higher-education
