Food tops spending for Chinese festivals
Research reveals that food is the biggest expense for Chinese consumers during traditional Chinese festivals, with 67 per cent of consumers in the cities buying festive foods, followed by 65 per cent choosing to cook at home. The social aspect of food is also important as 61 per cent say they spend more on eating out during festivals.
The survey was conducted by Mintel among 3,000 internet users, aged between 20 and 49, in Chinese cities.
Consumers enjoys festivals as they create opportunities for interaction with others. Over six in ten (61 per cent) urban Chinese consumers say that catering for the festival tradition is the key factor encouraging them to buy products compared to other times of the year. And, for over half (52 per cent), giving gifts is the key factor.
“A major attraction of festivals is food and fun. Festivals offer a unique opportunity for retailers and brands to provide an opportunity for consumers to celebrate, exchanging gifts and having a good time with friends and family,” said Matthew Crabbe, regional trends director at Mintel.
Another significant part of the festival experience is the opportunity to travel. Mintel research reveals that 35 per cent of urban consumers plan to spend more on domestic travel and 27 per cent on overseas travel. Mintel forecasts that growth in holiday expenditure during Chinese and Western festivals will increase by 16 per cent between 2015 and 2020.
“Travel spending is also internationalising China’s festival shopping influence. In fact, the consumer economy and the festival retail trade, is not just about buying products, it is also about leisure, entertainment, services and travel. Our research shows that holiday spending is one of the stronger growth areas within today’s consumer economy. Shopping and holiday/leisure and entertainment spending combined add special significance to the motives for consumers to spend money during festival times,” Crabbe continued.
Apart from traditional festival shopping, urban consumers also take to online shopping. There is some resistance to online shopping though, with 45 per cent of urban consumers unwilling to spend more for the occasions, preferring to shop when they need a certain product.
“Festivals are reshaping consumers’ spending patterns, especially online shopping festivals. Greater spending power and choices are driving individualisation among consumers, and the need for innovation by retailers and brands. Concerns with online shopping festivals are mostly caused by individual preferences or the need to shop for certain products as and when consumers need them, rather than only during online shopping festivals. Improving the shopping experience during online shopping festivals, and making such festivals more about the mixture of retail and entertainment, could be an opportunity for retailers and brands to win these consumers over,” he concluded.
