Unlocking the Consumer Power of Chinese New Year

On November 30, Hainan Airlines and CBBC hosted an event for businesses hoping to harness the power of the Lunar New Year holiday to lure Chinese consumers back to the UK. The panel consisted of Peter Han, general manager of Hainan Airlines; Alexander Graham, global brand director at Luxe Life; and Arnold Ma, co-founder of Qumin.

As Celine Tang – CBBC’s Retail & e-Commerce Sector Lead – pointed out at the beginning of the session, China’s zero Covid restrictions have been relaxed for almost a year now, but this will be the first Spring Festival holiday where travellers have had enough notice to book a trip overseas during the festival. What’s more, restrictions on group travel for Chinese people have also been lifted in the interim.

The big catch? The UK’s decision to end its tax-free shopping scheme for international tourists back in 2021. In other words, where Chinese visitors were previously allowed to claim back the VAT on items purchased during their stay in the country, that is no longer the case. As a result, Tang explains, countries including France and Italy are now more popular destinations for Chinese shoppers, who favour splurging in Paris and Milan over London.

The burden, therefore, falls on UK businesses to present alternative reasons to choose Britain for a trip, since it has become clear that relying on tax-free shopping as Chinese people’s primary motivation is no longer an option.

One of the UK’s advantages is its strong education sector, with thousands making the trip to see their children who study here during major holidays, or using education research as an excuse to come and check out the country.

This is where Hainan Airlines comes in, says Peter Han, who points out that unlike other Chinese carriers, Hainan flies to multiple UK cities outside of London, including Manchester, Edinburgh and Dublin. Next year, the airline will double its frequency.

Since Hainan Airlines is also perceived to be a higher quality airline than the national carrier – with better in-flight food and entertainment, for starters – Alexander Graham points out that its passengers are just the type of client UK businesses should be targeting.

His company, Luxe Life, has devised a smart strategy to use the real estate on the back of everyone’s paper airline tickets, which previously went to waste, to target Chinese clients with advertising before they board their flights to the UK. Targeting Hainan Airlines’ clients “is a great chance to get to the end consumer,” he says, adding that fast conversion is key. “There’s a certain time of year when people feel like spending, to have fun and be frivolous, and now is the time to capitalise on that.”

Graham also says that Chinese New Year can also be a great time for brands to “go for it” when it comes to advertising and marketing to Chinese consumers, as it’s a gamble that he’s seen pay off in the past. “If in two weeks you can get a year’s worth of revenue, you’re really going to win,” he added.

So what exactly should brands be considering when targeting 2024’s Chinese traveller to the UK?

For Qumin’s Arnold Ma, it’s about tapping into trends that are popular right now in China and meeting consumers exactly where they are. When advertising, “hijacking what people are already talking about works really well,” he says, adding that this is far more effective than attempting to create a new conversation. And there are plenty of topics to draw on for inspiration, too – from coffee culture and people’s new-found desire to be “spiritual and connected”, to city walks, urbancore (an aesthetic based on imagery of urban life and urban streets) and mountaincore (an aesthetic based on outdoor activities like hiking and rock climbing).

If he could give one piece of advice to brands trying to reach Chinese visitors to the UK, it would be to use social media, which simply cannot be ignored. And if your company plans to engage creators and influencers in its marketing – which he also advises – don’t freak out if the content they come up with doesn’t make a huge amount of sense to you or isn’t exactly how you would do things: “Focus on what you’re good at as marketers, and let creators focus on what they’re good at – creating content,” he says, pointing out that it’s the influencers on the ground who know their audiences most intimately.

Ma also says it’s important not to simply advertise your products. For a market that grows more sophisticated by the month, that just won’t cut it: “Chinese consumers want content that will make them feel good,” he says. “That’s aspirational. That will make them laugh, or cry.”

Another potential trap when strategising a Chinese New Year campaign is relying on the idea that something being “made in the UK” carries the same weight it used to because this is no longer the case.

Finally, for those creating in-store or hospitality experiences and interacting with Chinese customers on the ground, simply being friendly, helpful and accommodating can make a huge difference, says Graham.

“Chinese travellers don’t always feel welcome, so if your brand is welcoming, you already have an advantage.”