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  • “Day” Fever in China, Chinese Spent 120 Bllion Yan Only During the Lunar New Year
    2021-04-26 hit 207

    “Day” Fever in China, Chinese Spent 120 Bllion Yan Only During the Lunar New Year

     

    - In addition to holidays and anniversaries, platform-led festivals such as Alibaba's Gwanggun Festival are bullish -

     - KITA advised Korean companies “to utilize the schedule of online and offline festivals for a year” -

     

    The Institute for International Trade (President: Park Chun-il) of the Korea International Trade Association presented a strategy to advance into China utilizing various annual online and offline consumption festivals that have established itself as an important consumption culture and representative purchasing channel for Chinese people.

     

    According to the “China's Consumption Festival and Utilization Strategy of Korean Companies” issued by the institute on April 26th, as Chinese people's consensus on the consumption festival grows, the size of the festival, participating companies, and sales items are expanding every year. Moreover, as the consumption power of the younger generation, mainly born in 1990s and 2000s, increases, connection with social media and short clip platforms is becoming more universal. In addition to creating new consumption demand, trends such as changes in purchasing patterns, changes in marketing channels, and changes in platform operation methods are simultaneously happening.

     

    China's consumption festivals are divided into two categories: the marketing days with themes of history and culture such as Lunar New Year (January 1 in the lunar calendar), Mid-Autumn Festival (August 15 in the lunar calendar), National Day (October 1, a national holiday commemorating  the formal establishment of the People's Republic of China), Tanabata (July 7, Chinese Valentine's Day), etc., and the marketing days led by platform companies such as Jingdong's 618 (June 18), Alibaba's Gwanggun Day (November 11), Taobao's Double Twelve (December 12).

     

    The report said, “As most consumption festivals are held regularly in line with holidays and anniversaries, Korean companies need to set and prepare participation plans in advance for a year, taking into account themes and flagship items,” and added, “In the case of a consumption festival held on Tanabata, men's and women's cosmetics, jewelry, theme foods for couples, and newly wed home appliances are worth paying attention to.” In particular, the report advised, “It is also useful to collaborate (business cooperation) with traditional Chinese brands in consideration of the 'Guochao' (patriotic consumption) culture on holidays and anniversaries.”

     

    In addition, the report stated, “When it comes to festivals like 618 and Gwanggun festival that are led by e-commerce platforms, Korean companies must thoroughly check participation conditions for selling products on the platforms, pre-application and screening, and compliance with other regulations,” and added, “Recently, China's e-commerce platforms are reinforcing efforts to improve interactions with customers and logistics systems. Therefore, it is necessary to establish a distribution strategy accordingly in China.”

     

    Park So-young, a senior researcher at the Korea Internaitonal Trade Association, said, As for parents with children, consumption demand is steady due to Children's Day and school events. Therefore, luring them into the customer group will help secure a stable consumer base,” and stressed, “In order to attract Chinese consumers in a rapidly changing trend, it is essential to analyze, organize, and actively utilize various consumption festivals that are highly related to a company's flagship products.”

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