Chinese New Year Archives - Focus - China Britain Business Council https://focus.cbbc.org/tag/chinese-new-year/ FOCUS is the content arm of The China-Britain Business Council Wed, 23 Apr 2025 09:45:19 +0000 en-GB hourly 1 https://wordpress.org/?v=6.9 https://focus.cbbc.org/wp-content/uploads/2020/04/focus-favicon.jpeg Chinese New Year Archives - Focus - China Britain Business Council https://focus.cbbc.org/tag/chinese-new-year/ 32 32 What is ‘chunyun’, the world’s largest annual human migration? https://focus.cbbc.org/what-is-chunyun-and-why-is-it-the-worlds-largest-annual-human-migration/ Tue, 28 Jan 2025 12:00:00 +0000 https://focus.cbbc.org/?p=15224 Also referred to as the Spring Festival travel rush, chunyun is the world’s largest annual human migration Chunyun (literally “Spring transport”) refers to the 40-day peak travel period around Spring Festival (aka Lunar New Year), which this year falls on 29 January. Millions of people take advantage of the extended time off from work and study to travel back to their home regions and spend the important festival with family.…

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Also referred to as the Spring Festival travel rush, chunyun is the world’s largest annual human migration

Chunyun (literally “Spring transport”) refers to the 40-day peak travel period around Spring Festival (aka Lunar New Year), which this year falls on 29 January. Millions of people take advantage of the extended time off from work and study to travel back to their home regions and spend the important festival with family. As a result, train stations and airports are packed, and tickets are expensive and hard to come by.

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How big will chunyun 2025 be?

This year, authorities are estimating a record 9 billion domestic trips (of which car trips will account for 80%) will be made during the 40-day period of festivities, which began on 14 January 2025. It is hoped that travel and tourism during this period will boost domestic consumption at a time when the Chinese economy has been struggling.

New Spring Festival travel trends

As China Briefing notes, in recent years, there has been a growing trend of people combining their Spring Festival celebrations with tourism and celebrating with their families in a new destination. This is especially true among urban Millennials and Gen Z, many of whom find the pressure of returning home and spending time with more traditionally-minded relatives overwhelming.

Within China, the most popular destinations for Spring Festival travel are either warmer locations such as Yunnan and Guangdong, or winter destinations like Harbin and Jilin. Officials at the Ministry of Transport have predicted a 25% increase in travel for leisure purposes.

International travel is also popular with people from first and second-tier cities. With several new visa exemptions for Chinese tourists in place (including Thailand and Singapore), international journeys are set to boom. It is also hoped that China’s own new beneficial visa policies will attract foreign visitors to China. According to Xinhua, in 2024, 64.88 million foreign visitors travelled to China, an 82.9% increase from the previous year, of which visa-free entries accounted for 20.12 million visits.

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What businesses in China need to know for Spring Festival https://focus.cbbc.org/what-businesses-in-china-need-to-know-aboutfor-spring-festival/ Fri, 24 Jan 2025 06:30:00 +0000 https://focus.cbbc.org/?p=15215 Spring Festival — also known as Chinese New Year or Lunar New Year — brings a mix of celebration and operational challenges for businesses in China. While the holiday is a time of joy and cultural significance, it also creates unique disruptions, including temporary shutdowns, heightened employee turnover, and logistical bottlenecks. To navigate this critical period, companies must plan strategically, as China Briefing’s Qian Zhou explains Spring Festival 2025 will…

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Spring Festival — also known as Chinese New Year or Lunar New Year — brings a mix of celebration and operational challenges for businesses in China. While the holiday is a time of joy and cultural significance, it also creates unique disruptions, including temporary shutdowns, heightened employee turnover, and logistical bottlenecks. To navigate this critical period, companies must plan strategically, as China Briefing’s Qian Zhou explains
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Spring Festival 2025 will run from 28 January to 4 February, spanning a total of eight days. 26 January (Sunday) and 8 February (Saturday) are designated as work days to compensate for the long Spring Festival break. In a departure from previous years, the holiday has been extended by an additional day, beginning on Chinese New Year’s Eve (除夕).

Overtime payment for hours working during Spring Festival

To ensure the smooth operation of production and sales activities during Spring Festival, many companies need to adjust employee leave schedules and establish duty rosters. When requiring employees to work during the holiday, compliance with overtime payment regulations is critical.

Under Chinese labour laws and regulations, overtime payment rates vary depending on the type of rest days and the working hour system implemented.

Under the standard working hour system, for work performed on an official public holiday (i.e. 28-31 January in the case of Spring Festival), not less than 300% of the normal wage shall be paid; for work on weekend or an adjusted rest day (1-4 February), and where such rest days cannot be postponed and taken at another time, not less than 200% of the normal wage shall be paid.

Under the comprehensive working hour system, for work performed on public holidays (28-31 January), not less than 300% of the normal wage shall be paid. However, no rest day is outlined under this system, so for work performed on those adjusted working days and weekends, no overtime payments are available.

Under the non-fixed work hour system, there are differences in overtime regulations across different regions. For instance, in Beijing, employees under the non-fixed work hour system are not entitled to overtime pay for hours worked on public holidays (28-31 January). However, in Shanghai, these hours are considered overtime, and employers are required to pay compensation of up to 300% of the normal wage.

For adjusted working days on weekends, no overtime payment is due.

Annual bonus and tax implications

In China, many companies will provide employees with a one-time end-of-year bonus before or around Spring Festival. One of the most common ways that companies calculate the bonus amount is the “13th-month bonus” wherein the company pays an additional month’s salary around the CNY holiday. However, companies can implement their own bonus system as they see fit.

Annual bonuses in China are subject to individual income tax (IIT). Currently, IIT on bonuses can be calculated in one of two ways:

  • Method 1: Calculated and paid separately on the annual one-time bonus.
  • Method 2: Calculated and paid on the annual one-time bonus combined with the employee’s total annual income.

The first method is considered preferential treatment as it may decrease the tax burden for some taxpayers. This method will be applicable until the end of 2027. However, in general, for employees with low basic salaries, it may be more beneficial to combine their annual bonuses with their basic salary to calculate the total IIT (under Method 2) because various deductions could be employed to reduce the tax burden. Meanwhile, for employees with comparatively high basic salaries, Method 1 can potentially reduce the tax burden.

Employee retention during Chinese New Year

Spring Festival is a peak period for employee turnover, as many people consider changing jobs or career paths. This trend is partly driven by employees’ desire to stay in their current positions long enough to receive their annual bonuses. However, the cultural significance of the holiday also plays a role, as Spring Festival symbolises new beginnings, prompting individuals to seek fresh starts. Additionally, higher resignation rates during this time create more opportunities for job seekers. Consequently, the period following the Spring Festival can be particularly stressful for HR teams, who must manage a surge in vacancies.

In 2025, employee retention may become even more challenging. With both employers and employees facing economic difficulties, companies may lean toward offering smaller annual bonuses and more modest salary increases. According to a leading human resources agency, average salary adjustments for 2025 are expected to stand at 4.4%. However, for employees dealing with financial pressures, such as mortgages, childcare, and retirement savings, these increases may not be sufficient. As a result, many professionals may be more inclined to explore new opportunities. The voluntary turnover rate in the first half of 2024 stood at 3.9%, lower than that of the same period of the previous year, which stood at 4.9%.

In situations where financial incentives are limited, companies can implement various long-term strategies to enhance employee satisfaction and loyalty. Key retention strategies include:

  • Fostering a positive work environment: Cultivating a supportive and engaging workplace culture helps improve employee morale and loyalty during challenging times.
  • Promoting work-life balance: Encouraging a healthy work-life balance can alleviate stress, particularly during periods of economic strain. Companies should carefully manage workloads and set realistic performance expectations to prevent burnout.
  • Career development and job stability: Offering employees opportunities for career growth and ensuring job stability are critical to retaining talent. Training and upskilling initiatives not only demonstrate a commitment to employees’ development but also enhance overall productivity.
  • Flexible work arrangements: Providing flexible or hybrid work options can significantly reduce stress, especially for employees who benefit from a change in their work environment. Whether through remote work, flexible hours, or compressed work schedules, accommodating individual preferences enhances job satisfaction and reduces stress from rigid work structures.

For example, Ctrip Group has introduced a flexible home-office policy for its customer service staff, allowing eligible employees to work remotely during the Chinese New Year period from January 1 to February 28, 2025. This policy gives employees the option to choose their remote work periods, with up to two months of flexibility. The initiative aims to break the geographical constraints of traditional office settings and helps frontline workers better balance family and work commitments during the holiday season.

Financial and logistical preparations

In addition, proper financial and logistical planning is crucial to ensuring smooth operations and minimizing disruptions during the Spring Festival period.

Sales forecasting and inventory management: Accurate sales forecasts based on historical data and current market trends are essential for predicting demand during Spring Festival and the period immediately following. Businesses should plan and prepare inventory accordingly, taking into account potential production shutdowns and logistic delays due to the holiday. This will help prevent stockouts and ensure that customers’ needs are met even if factories close or shipping services are limited.

Cash flow management: Maintaining adequate liquidity is also critical during the holiday season. Companies should ensure they have sufficient working capital to cover operational expenses, including emergency costs that may arise during the holiday. A review of cash flow projections can help identify potential cash shortages, enabling businesses to secure necessary funds before the break.

Inventory procurement and material reserves: Ahead of the holiday season, businesses should stockpile essential materials and supplies based on expected demand. This includes raw materials, office supplies, and seasonal items such as decorations and promotional goods. Ensuring that necessary resources are in place before the holiday will help businesses operate smoothly, even if supply chains are disrupted.

By taking these key steps in financial and logistical planning, businesses can ensure they are well-prepared for both the operational challenges of Spring Festival and the financial demands of the holiday season. Proper forecasting, inventory management, and preparation for employee needs will contribute to a seamless holiday experience and strong performance in the months following.

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This article was first published by Dezan Shira & Associates’ China Briefing

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How to meet the needs of Chinese tourists this Spring Festival https://focus.cbbc.org/how-to-meet-the-needs-of-chinese-tourists-this-chinese-new-year/ Fri, 24 Nov 2023 06:30:29 +0000 https://focus.cbbc.org/?p=13318 Outbound tourism from China is slowly recovering post-Covid, but the tourists that are coming back are not necessarily spending and behaving the way that they used to. With the Lunar New Year (known in China as Spring Festival) peak travel period approaching, how should UK companies prepare for the return of the Chinese tourist? Pre-Covid, China’s international tourism spend, at £225 billion, was the most of any country in the…

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Outbound tourism from China is slowly recovering post-Covid, but the tourists that are coming back are not necessarily spending and behaving the way that they used to. With the Lunar New Year (known in China as Spring Festival) peak travel period approaching, how should UK companies prepare for the return of the Chinese tourist?

Pre-Covid, China’s international tourism spend, at £225 billion, was the most of any country in the world – almost double that of the USA, whose citizens collectively spent £117 billion in 2019. Much of that spending went to China’s Asian neighbours, with Thailand, Japan and Vietnam making up the top three foreign travel destinations for Chinese travellers.

Nevertheless, over the past decade, the UK has also been high on the agenda for China’s growing middle classes, with 1.01 million visiting in 2019, attracted by the UK’s history and culture, as well as its shopping and leisure facilities.

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Things, of course, came to an abrupt halt during the pandemic as global travel was put on hold. In 2021, less than 20,000 Chinese visitors came to the UK, as restrictions from both sides were put in place and flight routes were cancelled. This figure crept up to just 46,986 in 2022, according to Visit Britain.

However, since China re-opened earlier this year, flights between the UK and China have recovered to 70% of pre-pandemic levels, with airlines like Hainan Airlines offering direct flights between major Chinese cities and major UK hubs like London and Manchester.  The recovery may be happening slower than people had hoped, but the fact is that Chinese tourists are now coming back to the UK – especially since Beijing started to allow group travel again – with research by the New West End Company (NWEC) revealing that visitor numbers in September 2023 were only 2% lower than in September 2019.

However, it seems that the tourists that are coming back are spending much less than they used to. The same research by NWEC found that Chinese tourists in the West End were spending 58% less than they were before the pandemic.

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This is in part due to the Covid hangover and a global economic downturn, but many have also blamed it on the British government scrapping tax-free shopping in early 2021, which the Association for International Retail (AIR) has estimated will lead to an annual loss of £750 million from Chinese tourists alone. Tourists might still be keen to come to the UK for culture and experiences, but they are doing their luxury shopping in Europe or even at home in Hainan.

Nevertheless, many are betting on spending recovering during the approaching Lunar New Year peak travel season. Although most of China’s Covid restrictions had been lifted by Chinese New Year 2023, flights were still few and far between, and most people hadn’t had time to make travel plans, making this year the first year of true ‘recovery’.

“I’m pretty confident that numbers will get back up to pre-Covid numbers,” says Champa Selim, Deputy Director of Greater China and South East Asia at Bicester Village, commenting on the prospects for Chinese New Year. “Although things can happen quickly to impact China-UK relationships.”

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Lunar New Year used to be a time to spend at home with family, but in recent decades, many Chinese people have been using the week off work as an opportunity to travel. But it is not just short-term holidaymakers that will be hitting the UK during Lunar New Year. Many Chinese expats spend the holiday in Britain, especially the 150,000 Chinese students studying in the UK. Creating culturally-sensitive campaigns that resonate with these consumers at this time of year can boost both sales and brand recognition.

Companies looking to understand what the holiday means to the tourism market will have a chance to do so at an upcoming CBBC event on November 30 in partnership with Hainan Airlines, according to Celine Tang, CBBC’s Retail & e-Commerce Sector Lead.

“Attending events during this festive period, especially like this one in collaboration with Hainan Airlines, offers a unique opportunity to engage with and understand this vital market,” says Tang. “Such partnerships are not just about advertising, but celebrating and participating in a rich cultural exchange that Chinese New Year epitomises. It’s an occasion where the significance of cultural understanding and sensitivity comes to the forefront, crucial for any brand looking to make a meaningful connection with this audience.”

Brands that want to succeed in China increasingly need to consider cultural and experiential factors, and not just at Lunar New Year. The new generation of Chinese consumers are seeking “experiences” when shopping or even eschewing spending on tangible items for spending on things like concerts, health and wellness services, and travel.

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To tap into these changing habits, UK brands could consider creating partnerships with local tourist attractions, or coming up with branded events series (e.g., the fitness events hosted by Lululemon). On a more basic level, giving affluent shoppers top-notch service (including localised service offerings such as Mandarin-speaking staff and Chinese payment options) and creating a warm and inviting atmosphere can also go a long way.

Positive experiences can translate into spending and brand loyalty that lasts long after the New Year holiday.

All in all, it is important to recognise that the demands and expectations of the young, affluent consumers who make up over 50% of the Chinese tourists visiting the UK are changing. Whether it is moving away from big labels to smaller, “quiet luxury” brands, or preferring to find product information on social media, UK brands need to stay on top of trends to get the most out of the return of Chinese tourists in 2024 and beyond.

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Why Apple, McDonald’s and L’Oréal nailed their Lunar New Year campaigns https://focus.cbbc.org/three-foreign-brands-that-nailed-their-lunar-new-year-campaigns-in-2022/ Mon, 14 Feb 2022 07:30:38 +0000 https://focus.cbbc.org/?p=9466 Foreign brands are becoming savvier about marketing around Chinese festivals, particularly the culturally and commercially significant week-long Lunar New Year holiday. As the Lunar New Year festive period draws to a close, Qing Na from Dao Insights examines how Apple, McDonald’s and L’Oréal created campaigns that won over Chinese consumers  Apple’s short film inspires young dream chasers in China  Apple took the CNY marketing battle to the next level this…

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Foreign brands are becoming savvier about marketing around Chinese festivals, particularly the culturally and commercially significant week-long Lunar New Year holiday. As the Lunar New Year festive period draws to a close, Qing Na from Dao Insights examines how Apple, McDonald’s and L’Oréal created campaigns that won over Chinese consumers 

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Apple’s short film inspires young dream chasers in China 

Apple took the CNY marketing battle to the next level this year. The US iPhone maker released a 23-minute short film entitled The Comeback, shot using its latest iPhone model (the 13), which had yet again sparked a buying frenzy in China upon its launch in September 2021. While the film and the huge amount of effort put into its production attracted widespread attention, what really wowed Chinese consumers was the story, which explored the conflict between progress and staying true to one’s routes. 

The film tells the story of a son who failed to achieve his dream of being a film director in a big city and returned to his hometown. After overcoming the frustration of his failure, and with the support of his father and local villagers, the son finally produced his first film, which also turned the forgotten village into an Internet sensation. 

The video resonated with Chinese viewers because of its portrayal of hyper-local issues such as urbanisation, which has been one of the biggest social trends in China in recent years. It also put the value of being together with family — one of the main parts of Lunar New Year celebrations — at the forefront. By creating marketing based around hope and chasing dreams, combined with those of familial bonding, Apple tapped into the desires of its largest consumer demographic and regained its position as the largest phone provider in China.

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L’Oréal revives Spring Festival traditions with a Temple Fair in Shanghai

Having grown up alongside Gen-Z since its first store opened in China 25 years ago, L’Oréal (the world’s largest cosmetics brand) has repeatedly refreshed its Lunar New Year campaigns over the years to resonate with its core market. This time around, the company revived traditions from Gen-Z’s childhoods including New Year shopping trips and temple fairs. By showing respect for China’s culture and history, while bringing back the festive spirit, L’Oréal was able to engage strongly with consumers. 

Unlike other global labels, L’Oréal’s campaign was also decidedly more down-to-earth, choosing Shanghai No.1 Food Store as its event venue. The first food retailer in Shanghai started its life in 1954 and has since become a time-honoured brand, a go-to for residents in the city, especially during festive seasons. As such, the campaign also leveraged the footfall at a popular local store, showcasing the brand’s understanding of the local market layout.

Another appeal of this campaign for the young generation was L’Oréal’s cooperation with a hanfu costume expert, throwback to the Han & Tang dynasties, and several online influencers in the traditional Chinese culture niche. These collaborations not only tap into the guochao (literally ‘national trend,’ or Chinese fashion trend) movement, but also the growing interest among Gen-Z in dressing up in traditional clothing.

With the presence of hanfu influencers specialising in the guochao style, the offline event easily caught the attention of young shoppers. With many people trying out the costume for photo opportunities, it also helped to create user-generated content, which increased the campaign’s online exposure.

As a result of such a multi-layered campaign, L’Oréal set itself apart from other players in the cosmetics market and won over young customers with its thorough knowledge of both new consumer demands and the culture of its target market.

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McDonald’s ink painting anime gives hamburgers a Chinese flavour

McDonald’s took an unusual approach this Lunar New Year, combining Chinese ink painting with modern fast food. Chinese consumers were blown away by its aesthetic charm, blending two disparate ideas into one seamless campaign.

The one-minute campaign video was produced in collaboration with Shanghai Animation Studio, which also created hit mid-20th century Chinese cartoons such as Havoc in Heaven (the most popular episode of one of China’s Four great classic novels, The Monkey King), Black Cat Detective, and Calabash Brothers. Incorporating a classic Chinese painting style, the video smartly leveraged the aforementioned guochao, as well as the nostalgia of the target audience. 

Depicting a pink plum blossom petal floating through a pastoral landscape rendered like a traditional Chinese painting, the video skilfully hints at the approach of Spring. The accompanying poster for the campaign featured festive symbols like plum blossoms, auspicious clouds and magpies, which won over Chinese consumers with its unexpected understanding of Chinese culture.

Many global brands crave success and notoriety in the Chinese market, with this desire only getting stronger as Gen-Z become the backbone of the country’s consumer economy. The fast-changing and ever-diversified demands of these savvy buyers mean that international brands will have to continue to improve their knowledge about this new generation, as well as the society they live in. In order to succeed, foreign companies need to step up their efforts to adapt their offers to align with societal and cultural trends. Only by doing so will they be able to create more influential campaigns that not only make them stand out, but more importantly, impress a lucrative and discerning generation of new consumers.

Images captured from social media

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This article was provided by our content partner, Dao Insights

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Tips for doing business during China’s Lunar New Year https://focus.cbbc.org/tips-for-doing-business-around-the-lny-period/ Wed, 02 Feb 2022 07:30:59 +0000 https://focus.cbbc.org/?p=9395 The 2022 Spring Festival holiday and unpredictable Covid-19 flareups mean that businesses should keep track of the fast-changing developments on the ground and plan for possible disruptions. Here’s what to be aware of over the period if you’re new to doing business in China Lunar New Year, also known as the Spring Festival, is the most anticipated and celebrated Chinese holiday, this year arriving on 1 February and ushering in…

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The 2022 Spring Festival holiday and unpredictable Covid-19 flareups mean that businesses should keep track of the fast-changing developments on the ground and plan for possible disruptions. Here’s what to be aware of over the period if you’re new to doing business in China

Lunar New Year, also known as the Spring Festival, is the most anticipated and celebrated Chinese holiday, this year arriving on 1 February and ushering in the Year of the Tiger. But for many businesses, it can be a disruptive time that requires advance planning and strategy. It is important to be aware that the effects of LNY will be felt long before 31 January, as firms start to wind down their business a week or so prior to the first day of the festival.

Here we list four key considerations for business in China during the LNY period.

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Prepare inventory stock

In order to ensure that business operations are not adversely affected, inventory managers should obtain a detailed schedule of opening and closing dates well in advance of the LNY and order enough stock to see their business through the holiday period. Foreign companies should also bear in mind that the LNY public holiday is one of the year’s biggest shopping festivals, comparable to the Christmas season in many overseas markets.

Riccardo Benussi, Head of European Business Development at Dezan Shira & Associates’ Munich-Milan Office, comments that, “In the days and weeks leading up to the New Year, Chinese shoppers will rush to online and offline points of sale to purchase gifts for loved ones as well as delicious foods and drinks to greet guests at their homes.”

In many consumer goods industries, businesses achieve their highest sales figures around LNY. “Foreign companies should prepare for a surge in demand at this time of the year, and appropriately stock up their China warehouses to ensure the rise in consumption is met in a timely and orderly fashion,” Benussi explains.

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Quality control

Meanwhile, as pre-festival production is increased to fill the ‘new year gap,’ and pressure on suppliers rises, the quality of products can often suffer.

Issues in product quality control can sometimes spill over after the holiday period as high employee turnover requires new workers to be found and trained to replace those that didn’t return – meaning that delays are also possible. To avoid this, it is advisable to increase monitoring and communication in the months leading up to, and after, the holidays in order to minimise any potential lapses.

Similar bottlenecks can occur in the shipping or logistics industries, so it is important to ensure that shipments are booked and at port well in advance of the shipment date. Most Chinese port areas will be closed completely or will be operating at a limited capacity, so they are best avoided as much as possible at this time. During this period of the year, most fields of Chinese logistics are faced with a staff shortage as people return home, and thus transporting goods can also become significantly more expensive.

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Settle payments beforehand

To add to these difficulties, during the long holiday period, limited payments can be processed to and from China or Hong Kong depending on banks and local policies. Often the most suitable course of action is to settle all payments before LNY to avoid any potential problems with late payment fees. Communicating with suppliers and planning ahead will go a long way toward ensuring that effects on cash flow are minimised as much as possible.

Red packet etiquette

Red packets (‘hongbao’ in Mandarin and ‘lai see’ in Cantonese) are commonly given during the LNY Period. The significance of these red packets relates to the red envelopes themselves, which are seen to symbolise happiness, and good luck. Therefore, when a red envelope is given, this is seen as sending good wishes, happiness, and luck to the receiver.

Traditionally, if you have started earning an income, you should be giving red packets to close family members that are unmarried and younger than you or retirees. However, this is a general rule only, and there is no hard-and-fast rule on who to give a red packet to as well as how much to give.

In Chinese companies, however, red envelopes are often given as a form of a 13th-month salary — through issuing double pay in January, issuing a bonus over the Lunar New Year or via WeChat red envelopes. This is typically given on the last day of the working day before the Lunar New Year holiday.

Any company doing business in China should be prepared to adopt local practices over this festive period.

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Prepare for the holiday season

Lunar New Year is a significant time of the year for not only individuals and families, but also businesses in China, as it is often a time to re-group, re-strategise, and re-staff for the upcoming year. Planning in advance for this festival can help set your company apart from the rest, reducing significant problems in supply chain and logistics, while also maximising opportunities that the festival can bring to your business.

A version of this article was first published by China Briefing, which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world

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How to develop a successful CNY marketing campaign https://focus.cbbc.org/how-to-develop-a-successful-cny-marketing-campaign/ Thu, 13 Jan 2022 07:30:34 +0000 https://focus.cbbc.org/?p=9271 From Nike and Coca Cola, to Gucci x Doraemon, these are the brands that ran thoughtful Chinese New Year marketing campaigns in 2021 – and how you can learn from them going into the Year of the Tiger: Sandra Weiss from RedFern Digital explains how to develop a successful CNY marketing campaign … As one of the most celebrated events in China and a festival often associated with gifting and…

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From Nike and Coca Cola, to Gucci x Doraemon, these are the brands that ran thoughtful Chinese New Year marketing campaigns in 2021 – and how you can learn from them going into the Year of the Tiger: Sandra Weiss from RedFern Digital explains how to develop a successful CNY marketing campaign …

As one of the most celebrated events in China and a festival often associated with gifting and reunions with family and friends, Chinese New Year (aka Spring Festival) presents a significant commercial opportunity for brands. However, since the festival holds enormous cultural importance in China, it is also key that any marketing attempts are relevant and sensitive to the country and culture.

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During CNY, many brands will hold promotions, offer discounts, design special packaging, or release limited edition products or gift sets, with the imagery used often associated with the Chinese zodiac animal of the incoming year. These campaigns and releases sometimes occur weeks in advance of Chinese New Year, which is also when consumers begin to shop for the festival.

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Campaign highlights from CNY 2021

Doraemon x Gucci

  • With collaborations becoming more popular in the past couple of years, Gucci partnered with iconic Japanese cartoon character Doraemon to create a capsule collection. As the collection was inspired by the Chinese zodiac animal of 2021 – the ox – the blue robot cat’s appearance was redesigned for some of the items in the collection to include bovine horns. The campaign also included an augmented reality component as customers could scan the Gucci packaging or art walls located in Shanghai and Hong Kong through the Gucci app and watch Doraemon perform a dance. 
  • Marketing for this CNY campaign was widespread across multiple touch points, including WeChat, Douyin, Xiaohongshu and Weibo, and even included an offline pop-up location. 
  • Through this collaboration, Gucci was able to tap into the nostalgia that many Chinese consumers have for Doraemon, while the association with Gucci added a sense of prestige and novelty to the character.

A screenshot from Coca-Cola’s 2021 CNY advert, telling stories of different family experiences during the pandemic

Coca-Cola’s CNY confessions
Coca-Cola released an ad focused on telling the stories of three young individuals living in China during the Covid-19 pandemic, conveying how the situation “inspired a shift in perspective of what truly matters – family, friends, connection and love,” according to Bassam Qureshi, head of IMX at Coca Cola.

    • The ad was able to engage with viewer emotions, while at the same time encouraging viewers to share their own stories and thus create user-generated content (UGC).

Nike Air Jordan 1 Low “CNY” special release

  • Nike designed and launched a special edition of their Nike Air Jordan 1 Low inspired by Chinese New Year and the Year of the Ox. The sneakers used a bold combination of black and red, with Ox imagery in classic Chinese art style, metallic gold thread, and gold tassels tied with red thread. By tastefully including Chinese cultural characteristics, Nike was able to release special edition footwear that is high quality, aesthetically well designed, and shows appreciation for China and Chinese New Year.

Johnnie Walker release limited-edition bottles to celebrate the Year of the Ox

Johnnie Walker’s limited-edition Year of the Ox scotch

  • For Chinese New Year 2021, Johnnie Walker collaborated with Chinese artist Shirley Gong to create a limited-edition version of its Blue Label bottle. The art on the bottle showcased an Ox standing over mountain clouds, representing prosperity and good fortune, and combining a Chinese artistic style with the Scottish alcohol brand.

How to develop your own successful CNY campaign

  • Cultural relevance and respect are more important than ever, especially when it comes to a festival that is so deeply aligned with Chinese traditions. Brands need to show that they appreciate Chinese culture and aesthetics by using appropriate colours, symbols, art styles and imagery, while also conveying a festive tone. Brands could work with a local Chinese creative team or artist to come up with culturally relevant and aesthetically pleasing designs that will resonate with Chinese consumers.
  • Although many Chinese New Year advertising campaigns include moving campaigns or videos that engage the viewers’ emotions, it is important to note that CNY campaigns should generally not be overly serious or sad. The festival is a time of celebration, humour, family and reunion, and any emotions brought up through the campaigns should relate to these elements and can demonstrate that the brand is attentive to and understands its Chinese consumers.

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  • Brands sometimes choose to use humour and puns in their CNY campaigns. When done appropriately, such as ensuring that any jokes used are not culturally insensitive, these types of campaigns can gain huge interest from consumers, especially among younger ones. 
  • With the increase in the popularity of video, releasing engaging video content that emphasises the values and traditions of the festival could elevate the brand campaign further, especially if shared on social media.
  • Encourage user-generated content through your CNY campaigns to increase word-of-mouth marketing, which is extremely powerful when it comes to brand awareness. Examples include creating challenges on Douyin to encourage participation from users, or encouraging responses to questions or prompts, and providing prizes for the best responses. 
  • Use a variety of media platforms to promote your campaign, ensuring that touch points exist across any channels that are relevant to your brand, such as WeChat, Xiaohongshu, Douyin, Weibo, Kuaishou, Bilibili, etc.  

As competition among both foreign and domestic brands continues to increase, brands will need to develop unique campaigns for CNY that can differentiate themselves from the crowd and ideally engage consumers’ emotions and encourage healthy interaction. For foreign brands, the creation of a culturally relevant campaign that does not overstep but is still able to resonate with Chinese consumers will be a careful balancing act that could bring massive positive attention. 

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A version of this article first appeared in China market-focused magazine, The RED Edition – Special Issue 2021, published by RedFern Digital

The post How to develop a successful CNY marketing campaign appeared first on Focus - China Britain Business Council.

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