Melissa O'Malley, Director of Global Merchant & Cross Border Trade Initiatives
Singles Day may be the biggest 
Last year, Chinese retail sales and catering grew 13.3% year over year for seven-day Lunar New Year holiday, totaling more than $100 billion*. Online shopping, catering, and tourism all saw high demand from Chinese consumers. With China’s rapidly growing ecommerce market, more and more shoppers go online to make their purchases, where they can take advantage of a wide range of promotions and discounts. All of this spells big opportunity for merchants around the globe.
So, how can businesses cater to these consumers?
It’s not as simple as just translating your offering listings into Mandarin. To truly penetrate the Chinese market, merchants need to understand the customs and cultural taboos of the Chinese shopper.
Lunar New Year: The Basics
Originally a time to honor ancestors, today Chinese families gather on Lunar New Year to celebrate a fresh start, cleaning the house to sweep away misfortune and make room for the good luck that the New Year will bring. It is also the peak shopping season. With an expanding middle class, more and more Chinese consumers are taking advantage of the promotions and discounts that are offered by retailers.
Sell into the Holiday with Promotions on Local Favorites
Many brands offer seasonal products specifically for the New Year, often in red or gold. Red clothing is particularly popular. The most iconic gift for Lunar New Year is a token amount of money enclosed in a decorative red envelope. Fireworks are also a must-have, as they are believed to help ward off evil and misfortune. Lastly, fine wine and spirits are sought after to accompany the elaborate feasts that mark New Year celebrations.
Big Opportunity for the Travel Sector
It is longstanding tradition to reunite with family for the Lunar New Year, resulting in the busiest travel season of the year in China. There is even a name for the travel period around the holiday—Chunyun, which begins about 15 days before the New Year and lasts for 40 days. During this time, hundreds of millions of Chinese travel home from major cities to spend time with family, culminating in a large traditional feast on New Year’s Eve.
What Not to Sell
While the color red brings good fortune, it is considered unlucky to write with red ink. So when you consider your Lunar New Year product line, avoid items that feature red writing. Similarly, the color white as it is most often associated with death so be sure to remove white objects from your offerings. Clocks, handkerchiefs, and sharp objects should also be avoided.
Want to learn more about shopping holidays or gift giving traditions in China? Visit www.paypal.com/passport for a wealth of information on how to sell into new markets.
* China’s retail sales up 13.3% during CNY (2014). IGD Retail Analysis (10 February 2014).
http://retailanalysis.igd.com/Hub.aspx?id=23&tid=3&nid=12049