TRENDS & INSIGHTS
Executive summary
Chinese New Year is high season. Gifts in certain key categories are big sellers. It’s also a key moment for luxury goods purchases.
E-commerce is big sales driver in China. Mobile dominates. Short-video platforms are hugely popular. And consumers are influenced by shopping and product experiences.
There are key market attributes specific to China. Sales trends, purchasing habits and consumer preferences will help guide your approach.
Shipping goods into China can have added complications. Ensuring your documentation is correct and any additional requirements are addressed in advance helps make it much smoother.
Chinese New Year is a week-long public holiday in China. Also known as Lunar New Year or Spring Festival, it’s a huge cultural and economic event marked by the largest human migration in the world as people travel to celebrate with family and friends.
The timing of the holiday is based on the Chinese lunisolar calendar, so its date varies. Each year, the festival kicks off between 21 January and 20 February. The celebrations are not restricted to China. Other countries also mark the Chinese New Year, including Singapore, Indonesia and Malaysia.
For European businesses trading in China, it can be a great chance to target consumers taking part in the celebrations. Gift-giving is an important part of the festivities. Red envelopes with money inside are traditional, but other gift items are popular, too.
E-commerce consumers in China
To maximise your performance in the key New Year period, it’s worth considering how consumers shop, as well as how best to reach them.
E-commerce is huge in China, led by mobile and social selling platforms. Gen X and Millennials are powering consumption online. This isn’t just being fuelled by regular web stores and marketplaces. Short-video platforms, social media and review apps are top influencers of online purchases.
And it’s not just brands and businesses that are influencing consumption through online channels. Consumers themselves are using social and video platforms to share their experiences.
Pro tip: Consider who you are targeting and where those consumers are based. Many brands and retailers are extending their reach away from the major urban centres and into tier-two cities and smaller. That’s where most urban Chinese consumers can be found and e-commerce is a great way to reach them.
3 ways to appeal to Chinese New Year shoppers
Be responsive
Capitalising on Chinese New Year opportunities could depend on your ability to respond to the market needs. One way to help do this is to carry buffer stocks, and another is to make sure you have funds set aside and available to allow you to re-stock popular items quickly. Negotiating flexible payment terms with suppliers for this period can help too, particularly if cash flow is tight.
Being responsive is also about paying attention to broader trends and seeing how you can take advantage. For example, livestreaming (marketing products online directly to consumers) is hugely popular in China. If you want to sell your products via livestreaming in China, working with a multi-channel network that has popular hosts could be a good place to start.20
If that’s not for you, then you can still take learnings from livestreaming’s success. Two big reasons why it’s so popular are the trust consumers place in the hosts and the education about products they can provide. Finding ways to emphasise these factors in your own communications could prove beneficial.
Align with consumer preferences
Research consumer preferences and expectations and try to ensure you can meet them. Payment is a key element here.
Chinese consumers prefer online payment methods such as Alipay, WeChat Pay and UnionPay when shopping online. Integrating these is a good way to offer familiarity and ease of use. They also offer BPNL (buy now, pay later) options to spread the cost of a purchase over several payments. This can be particularly interesting for higher-priced products and budget-sensitive buyers.
You can also look at what consumers tend to buy at this time of year and see if you can target any specific areas. For example, snacks and beverages are popular gifts for the New Year, in addition to digital devices, clothing, shoes and accessories.
The New Year holiday is also one of the most important sales periods for luxury goods, with prices that are generally higher than in Europe. E-commerce businesses with compelling products could find they have added appeal to price-conscious Chinese consumers.
Be lucky
Superstition plays a big role in Chinese culture. It can have an impact on product purchases, particularly when shopping for New Year gifts. Bear this mind during the holiday season. Red, yellow and gold all symbolise wealth, so products and packaging in these colours could be particularly popular. Think about the multiples you sell products in, too. Eight is the luckiest number in Chinese culture. Most other even numbers are also favourable but avoid the number four as it is considered unlucky.
How to ship from Europe to China
Crossing customs borders in China can be more complicated than for some other countries. Here are some key steps to take to help keep goods moving smoothly.
Understand the customs process
When shipping to China, goods either go through express or formal clearance. Online purchases will likely go through express clearance, if they meet certain requirements. For example, the value of goods must be below ¥1000 (approx. €130). Single items can have a higher valuation, as long as they are approved by customs. But, before they get to that stage, they will need to be cleared by China Inspection and Quarantine (CIQ). This ensures imported goods comply with Chinese regulations, including labelling, packaging and safety requirements.
Make sure shipping documentation is in order
As a minimum, you’ll need a commercial invoice and an air waybill to ship goods into China. If you’re sending multiple boxes or your shipment weighs over 100 kg, you’ll need a packing list, too. All information on the commercial invoice needs to be accurate, in English, and correspond to what is on the air waybill.
Check if your goods are regulated
Certain goods are regulated in China. When imported, they will likely need additional licences, documentation, and/or certification. The regulations can be updated frequently, so it’s important to check what rules apply to your products before shipping.
Chinese New Year can be a new peak season for businesses in Europe prepared to seize the opportunity. Now all that’s left to say is Gong Xi Fa Cai: Wishing you wealth and prosperity!
The information provided in this report does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. Its content, information, and services are not a substitute for obtaining the advice of a competent professional, for example a licensed attorney, law firm, accountant, or financial adviser.