Spring Festival–often recognized in the U.S. by the name ‘Chinese New Year’—is a growing opportunity for brands. Between the rise of online shopping and the spreading popularity of the week-long celebration, we’ve seen staggering revenue increases for brands who invest.
Traditionally marked with shopping—as buying new items is seen as an embodiment of a brand-new start in the new year—Spring Festival is an important period for brands. Top selling products vary from festive food, seasonal flowers and accessories, to clothes, furniture, and electric appliances.
Chinese New Year, or Spring Festival, usually falls between late January and mid-February, aligning with the start of the Chinese Lunar calendar. What you might not realize about Spring Festival is that this week-long holiday is growing into a promising ecommerce opportunity, comparable to Singles’ Day.
This year, Pattern has leveraged its expertise on local marketplaces, such as Tmall and JD.com, to take advantage of the changing Chinese New Year shopping behaviour, helping some of its brand partners achieve 500% year-over-year sales growth during the period.
During the Chinese New Year, historical retail sales rose for more than a decade until the COVID-19 pandemic struck in 2020. The pandemic disrupted not only the country’s economy, but also a traditional custom of the Chinese—those who move from the countryside to cities for livelihood returning to their hometown during the Spring Festival to reunite with families. The Chinese government called for its people to stay put during the festival's celebrations to fight the pandemic, resulting in less need to buy festive foods and gifts. That is, until ecommerce saved the day.
At the Spring Festival in 2021, while still adhering to the stay-put call, the Chinese government joined hands with some local online marketplaces and logistics companies to initiate an online Spring Festival shopping event that ran for 30 days and eventually brought in RMB 906 billion (USD 140.2 billion). As a benchmark, the 2021 Single’s Day raked around RMB 965 billion (USD 152 billion) in sales value. These encouraging results rallied the administration and business community together to create the second edition of the month-long shopping event for 2022’s Spring Festival.
Driven by the government-business joint effort, physical retail sales during the 2021 Spring Festival period also saw a noticeable rebound, as official data shows that total revenue made by key companies in the retail and catering categories stood at RMB 821 billion (USD 127.1 billion) during the 2021 Spring Festival, rising 28.7% year over year and 4.9% higher than pre-pandemic sales in 2019.
The growth momentum continued in the 2022 Spring Festival. During the first five days of the Spring Festival holiday, the People's Bank of China’s clearinghouse platform processed online payment transactions worth RMB 4.2 trillion (USD 660.3 billion), rising 11.6% year-over-year. Leading Chinese marketplace JD.com also announced that its turnover during the first six days of the holiday increased by more than 50% year over year.
Before the pandemic, China's logistics and express delivery sectors tended to grind to a halt during the Spring Festival week, so orders were expected to be dispatched more than a week before the holiday. Things changed since 2021, as industry players started responding to the government’s call to provide “non-stop” fulfilment services during the period to enable Chinese shoppers to “stay put, buy online.”
The effort yielded a remarkable result, as official data showed China's postal industry collected and delivered a total of 660 million parcels during the 2021 Spring Festival week, which was a 260% increase on a year-over-year basis. During the 2022 Spring Festival week, we even saw some 749 million parcels being handled by the country’s delivery sector, as Chinese marketplaces have worked with logistic operators to ramp up the scale of non-stop fulfilment services.
While Chinese marketplaces still reserve this non-stop fulfilment service to the most highly competitive brands on their platforms, Pattern has helped our partners secure this offer. Thanks to the fulfilment advantage at this Spring Festival, we saw some of our partners yield exciting results of more than 500% in sales growth compared with the same period last year.
Thanks to the convenience of the ecommerce ecosystem, the hottest selling items are getting more and more diversified. For example, in 2021 Alibaba found that the sales for floor-sweeping robots, window cleaning robots, and floor washing machines increased by 100%, 300% and 1,800% respectively, year-over-year, as younger shoppers often bought such gadgets as a gift for parents.
Another observation is regarding the synergy between Spring Festival and other significant holidays or events happening in the period. The 2022 Spring Festival week coincided with the Winter Olympics in Beijing, resulting in sales of ice sports gear and ski equipment on Tmall increasing by 300% and 180% respectively, year-over-year. In 2021, Valentine’s Day fell in the middle of the Spring Festival week. and JD.com observed that the demand for jewellery, beauty, watches, and other gifts rose significantly during this period. For example, the amount of women’s karat gold necklaces and yellow gold pendants sold increased 6.2 times compared with the same period in the previous year.
To exploit the thriving opportunity from Spring Festival, brands need to have a strong team of industry experts in the local market to stand out from the stiff competition from local and overseas players.
Pattern can accelerate your marketplace business around the world—we partner with brands through a unique model where we purchase our partner’s stock and sell it for them on online marketplaces, such as Tmall, JD.com, Lazada, Amazon, Shopee, Coupang and eBay.
Not only is Pattern in the top 5% of authorized Tmall Trade Partners, we also have boots on the ground. Pattern has a local team in China providing brand partners with a comprehensive service that help them protect their brand, drive growth, and scale distribution.
Interested in tackling the Chinese ecommerce opportunity? Get in touch and learn what we can do for your brand.
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If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.
Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.
At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead.
An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.
A great Amazon SEO Agency partner will:
Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance.
Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS.
To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.
A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.
It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.
Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins.
Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.
As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.
Contact us to learn more about our SEO optimization services.