Are U.S. Shoppers Spending Less on Celebrations?
Chinese New Year (beginning January 22, 2023) is one of the most important holidays in Chinese culture, but its popularity may be fading among U.S. consumers.
The story at a glance: Historically, Chinese New Year drives demand for similar products every year: Chinese decorations, indoor bamboo, chocolate, and Chinese tea. However, these products have seen decreased demand year over year from 2021 – 2022.
Why it matters: With inflation and economic uncertainty at an all-time high, and Chinese-U.S. relations strained, this downward trend could continue for the foreseeable future. This trend could make it difficult for ecommerce brands to plan their inventory and marketing needs accordingly.
What we’re seeing: Chinese New Year still generates high demand for certain celebratory products during any given year.
- During the week of the Chinese New Year 2020 (January 25), demand for several products was higher than the annual average, including candy and chocolate (10%), Chinese decorations (41%), Chinese tea (12%), Chinese food (8%), and indoor bamboo (19%).
- During the week of Chinese New Year 2021 (February 12), we see similar increased demand above the annual average. Demand rose for candy and chocolate (14%), Chinese decorations (16%), Chinese tea (36%), live indoor bamboo (29%), and money plants (24%).
- Again in 2022, Chinese New Year (February 1) drove increased demand above the annual average for candy and chocolate (103%), Chinese decorations (4%), Chinese tea (27%), Chinese food (11%), live indoor bamboo (32%), and money plants (19%).
- Even when we look at demand year over year from 2020 – 2021, we see increases in candy and chocolate (14%), Chinese decorations (258%), Chinese tea (54%), dumplings (310%), live indoor bamboo (12%), and money plants (29%).
Yes, but: Demand for these same products diminished year over year from 2021 – 2022:
- Candy and chocolate -2%
- Chinese decorations -73%
- Chinese tea -23%
- Dumplings -7%
- Live indoor bamboo -23%
- Money plants -12%
The takeaway: With economic and geopolitical challenges still fresh in consumers’ minds, ecommerce brands will need to adjust their inventory and marketing strategy as it relates to Chinese New Year celebrations.
Interested in using insights like these to drive your strategy forward? Contact our team today.