China – and elsewhere – will soon begin counting down to the traditional new year festival. It’s a huge cultural and economic event, and for European businesses it could also represent a great chance to target consumers taking part in the celebrations.

Chinese New Year takes place on January 29, 2025, although the public holiday period runs for approximately one week. It will be marked by the largest human migration in the world as people travel across China to celebrate the Year of the Snake with family and friends. As you might expect, gift-giving is an important part of the festivities. Red envelopes, which gift-givers put money inside, are traditional but other gifts are popular too.

Remember that the celebrations are not restricted to China. Other countries also mark Chinese New Year, including Singapore, Indonesia and Malaysia.¹ This could be an important factor when considering whether the event – also known as Lunar New Year and Spring Festival – could present an opportunity for your business.

of consumers say they usually share their experience of a product or service, while just 13% say they rarely or never do¹⁰

It’s worth considering how consumers shop, as well as how best to reach them, if you want to maximise your performance in the key New Year period. And while it’s well-known that e-commerce is huge in China, to truly understand how consumers are shopping it’s essential to grasp the importance of mobile – and the social platforms that are helping to drive sales.

Research shows that Generations X and Y (also known as Millennials) are powering consumption in China, accounting for 60% of total income and expected to spend more across most categories than all other generations.⁵ Much of that consumption is being facilitated online, with e-commerce making up more than a quarter of retail sales in China.⁶

This isn’t just being fuelled by regular web stores and marketplaces. A McKinsey report shows that 60% of Chinese consumers use audio and video streaming platforms at least once a day, spending an average of two hours each day watching short-video platforms.⁷ This is important because almost a third of consumers say that short videos, social media or review apps hold the greatest influence over their consumption decisions.⁸ In 2023, over 600 million Chinese consumers watched livestreams for online purchases.⁹

And it’s not just brands and businesses that are influencing consumption through online channels. Consumers themselves are using social and video platforms to share their experiences. Lots of them are doing so – 51% of consumers say they usually share their experience of a product or service, while just 13% say they rarely or never do.¹⁰

Insider tip: If you’re aiming to capture Chinese e-commerce customers, it’s worth considering who you are targeting and where those consumers are based. Many brands and retailers are extending their reach away from the major urban centres and into tier two cities and lower. Why? Because that’s where most of the consumers are. Most urban Chinese citizens live in tier two cities or below, accounting for around 70% of the country’s population.¹¹

E-commerce, of course, is a great way to reach them. In 2023, the market size of crossborder retail imports was CNY551.8 billion, up from CNY527.4 billion the previous year,¹² while cross-border consumer numbers rose to 189 million people from 167 million.¹³

Crossing customs borders in China can be more complicated than for some other countries. Here are some key steps to take to help keep goods moving smoothly.

When shipped into China, goods either go through express clearance or formal clearance. Online purchases will likely go through express clearance, although there are certain requirements – including that the valuation must be below CNY1000 (approx. €130). Single items can have a higher valuation, as long as they are approved by customs. But before they get to that stage, they will need to be passed by China Inspection and Quarantine (CIQ). This ensures imported goods comply with Chinese regulations, including labelling, packaging and safety requirements.

As a minimum, you’ll need a commercial invoice and an Air Waybill to ship goods into China. If you’re sending multiple boxes or your shipment weighs over 100kg, you’ll need a packing list too. All information on the commercial invoice needs to be accurate, in English and correspond to what is on the Air Waybill.

Certain goods are regulated in China, and will likely need additional licences, documentation, and/or certification when imported. The regulations can be updated frequently, so it’s important to check what rules apply to your products before shipping.

Capitalising on Chinese New Year opportunities could depend on your ability to respond to the market needs. One way to help do this is to carry buffer stocks, and another is to make sure you have funds set aside and available to allow you to re-stock popular items quickly.¹⁹ Negotiating flexible payment terms with suppliers for this period can help too, particularly if cash flow is tight.

But being responsive is also about paying attention to broader trends, and seeing how you can take advantage. Livestreaming, for example – where hosts (also known as Key Opinion Leaders) market products online directly to consumers – is hugely popular in China. If you want to sell your products via livestreaming in China, then working with a Multi-Channel Network (MCN) – which KOLs are often affiliated with – could be a good place to start.²⁰

But if that’s not for you then you can still take learnings from livestreaming’s success. Two big reasons why it’s so popular are the trust consumers place in the hosts²¹, and the education about the products they can provide.²² Finding ways to emphasise these factors in your own communications could prove beneficial.

Beyond responding to ‘live’ changes in the market, or adapting your offer to suit broader e-commerce trends, it could also be useful to research other consumer preferences and expectations and try to ensure you can meet them.

Payment is a key element here. Chinese consumers prefer to use online payment methods such as Alipay, WeChat Pay and UnionPay when shopping online²³, so integrating these into your store is a good way to offer familiarity and ease of use for them.

You can also look at what consumers tend to buy at this time of year and see if you can target any specific areas. For example, over 60% of people were planning to give beverages as gifts for the 2023 New Year holiday, while 57% were planning on giving snacks.²⁴ It’s not just foodstuffs though – over one in five were planning to give digital devices, and a similar amount were expecting to give clothes, shoes and accessories.

The New Year holiday is also one of the most important sales periods for luxury goods and, with prices estimated to be 25-45% higher domestically than in Europe²⁵, ecommerce businesses with compelling products could find they have an added appeal to price-conscious Chinese consumers.

Superstition plays a big role in Chinese culture, and it can have an impact on product purchases too, particularly when they are being bought as New Year gifts. If that’s the market you’re targeting, it’s worth bearing this in mind. Red, yellow and gold all symbolise wealth, so products – and packaging – in these colours could be more popular than others such as white or black.²⁶ And think about the multiples you sell products in too. Eight is the luckiest number in Chinese culture. Most other even numbers are also favourable but avoid the number four as it is considered unlucky.²⁷