The Lunar New Year, also known as the Spring Festival, is the most significant of all traditional Chinese holidays as it signals the start of a calendar year that corresponds to the phases of the moon. For retail store Lunar New Year, it will continue to be a significant business opportunity in 2023.
What is the Lunar New Year?
The Lunar New Year, also known as the Spring Festival, is the most significant of all traditional Chinese holidays as it signals the start of a calendar year that corresponds to the phases of the moon. Chinese spring festival is a time of superstition because of the traditional belief that the beginning of the year has an impact on the entire year. It is thought that an object’s appearance (color, shape, and sound) and name determine whether it will be lucky or unlucky.
Why is Lunar New year a huge opportunity for retail stores?
Celebrations to happen more locally
Since ancient times, the Lunar New Year has been the catalyst for the largest yearly human migration in the globe, when hundreds of millions of people who work far from their hometowns return to rejoice with their loved ones. Following China’s national lockdown for the 2020 Lunar New Year, the global pandemic has significantly altered this ritual and all but eliminated travel flexibility.
But in 2021, with migration rising but still not reaching the same levels as in 2019, this custom was partially revived. The two major Chinese map companies, Baidu and Gaode, both claimed that, compared to pre-pandemic levels, the average mileage of their users for Lunar New Year 2021 had decreased by more than 70%, suggesting that most people’s travel was likely to be local rather than long-distance.
Tourism and spending habits in the West
Chinese tourists are also steadily increasing their spending. Comparatively, Chinese travelers spent $10 billion abroad in 2000, and $277.3 billion in 2018. The expansion of the middle class in China as well as the Chinese desire for more affluent experiences like luxury items and travel to exotic locales are the driving forces behind the country’s rising tourism numbers.
The improvement in Chinese consumer spending may be the cure for our current retail store’s Lunar New Year problems. Targeting non-native cultural holidays may be a part of the solution to the UK retail market’s recent struggles, especially on the main street.
Newer generations of Lunar New Year shoppers
According to Alibaba’s Spring Festival Consumption Report 2021,Gen-Z and Millennials are outpacing their parents’ generation in terms of purchasing for Lunar New Year celebrations. In addition, tech-related purchases are becoming more popular around Lunar New Year. The growth rate of household tech items, such as sweeping and window cleaning robots, among the orders placed during this time topped 300% YoY (year over year).
Contact us to learn about how you can take advantage of this vacation for your retail store Lunar New Year.