Chinese New Year attracts 38% year-on-year growth in orders, offering UK retailers a new boom
Valentine's Day is now gone and long-forgotten, but the arrival of Chinese New Year will mark the continuation of peak season-attracting the impact of Chinese shoppers and new sale opportunities around travel, food and wellbeing across the UK ecommerce market.
The past year has seen a 38% year-on-year increase in orders for advertisers during the core three day period of Chinese New Year, according to the data insights from Rakuten Marketing
Orders of cameras and photography equipment grew by 19% year-on-year, while the health and wellness vertical benefitted from a considerate 83% expansion. On the other hand, food and drink experience a 28% rise and a 76% increase in traffic online, suggesting an appetite for part essentials.
And it is a potential boon for UK retailers, believes PCA Predict: “
This follows a wider trend of nearly three-quarter
(73%) of Chinese consumers shopping online for Chinese New Year. There is a huge opportunity for UK retailers to capitalise on the Chinese ecommerce market around New year, especially as it is estimated more than a fifth
(23%) of consumers in China will make at least one cross-border purchase via the internet in the next year,” says Chris Boaz, Head of Marketing of PCA Predict
He continues: “While Chinese New Year can’t compete with the size and scope of Singles’ Day in terms of ecommerce opportunity for international brands, it is becoming an increasingly important date for retailers outside of China.”
However, retailers need to pay attention, as the report reveals that during the festival consumers aren't looking for any old brand, with orders made to luxury and high-end stores shot up by 32% around Chinese New Year, affirming more premium purchase interests from these audiences.
“It’s crucial to remember these global sales moments are both a time of heightened demand and competition," comments Mark Haviland, executive vice president at Rakuten Marketing Europe. "Brands must use insight to ensure they get in front of the right global audience segments, with the right message on the right channel.”
Delving specifically into the UK market, Chinese shoppers generated a 17% bump in completed transactions during Chinese New Year alongside a 37% increase in traffic across travel sector affiliate websites. This suggests the focus on family and friends during Chinese New Year is increasingly about visiting and treating each other with experiences – much as we found here in the UK with Valentine's Day
“Sales driven by Chinese buyers are growing; increasingly members of the younger and well-educated generation are entering the global market. While Chinese New Year is still more a more family orientated celebration, the tastes and needs of many consumers are evolving fast highlighting new FMCG opportunities," comments Haviland. “Food and drink have become a major spending area alongside travel now. Hennessy Cognac, Moet and Hennessy have reported continuing the robust upward momentum for Chinese New Year celebrations."