Chinese shoppers spent $146 billion during the 2018 Spring Festival, including a substantial number of cross-border purchases.
According to the Ministry of Commerce, Chinese shoppers spent 10.2% more this year compared to last year’s holiday season. Cross-border eCommerce was a big winner during the Spring Festival, with foreign imported goods accounting for 63% of purchases.
James Hebbert, managing director at Hylink Group, the largest independent digital agency in China, explained to Business of Fashion:
“Chinese New Year is the season for people to ‘throw out the old and welcome the new,’ so there’s always demand for new products and apparel…This is the season where you’ll be meeting plenty of relatives and friends, so there’s a need to show your status and having the latest collection from a luxury brand is often seen as a sign of prestige and wealth”
Brands are capitalizing on the Chinese spending power during the lucrative Chinese New Year, especially luxury and fashion retailers.
Zara Hoffman, director of strategic operations at Jing Daily, a China-focused media publication said:
“Gift-giving culture also represents a tremendous opportunity for luxury brands to target consumers during Chinese New Year”
Retailers should forecast trends such as Chinese New Year when planning their cross-border eCommerce strategy, as Chinese consumers have an appetite for foreign goods – particularly luxury items. Chinese millennial shoppers have a higher disposable income and therefore are much more likely to shop with an established foreign brand during busy holiday periods. Brands need to offer shoppers a good quality product and be prepared to promote it via social media channels such as Weibo and/or WeChat.