In an effort to capture and celebrate new and exclusive experiences, luxury brands are revamping their Lunar New Year campaigns, particularly in the fashion industry, according to experts at Euromonitor International.
Lisa Hong, a consultant at Euromonitor, emphasised the effectiveness of this approach in engaging a loyal consumer base in Asia.
While immediate sales may not always be the direct outcome, these strategies play a crucial role in enhancing brand image and rapport with local consumers.
Hong highlighted Fendi’s collaboration with the popular franchise Pokemon in 2024 as a prime example. The incorporation of beloved dragon characters like ‘Dragonair,’ ‘Dratini,’ and ‘Dragonite’ attracted millennials and Gen Z consumers globally, who eagerly lined up for hours in front of pop-up stores to enjoy the unique experience. Lunar New Year campaigns are expected to evolve further, capitalising on such exclusivity.
Marketing practices like these will move beyond repetitive annual campaigns and embrace collaborations with popular artists or characters, particularly appealing to the younger generation and garnering significant consumer response.
The festive mood during Lunar New Year also goes viral on social media, contributing to the acceleration of digitalised consumer spending.
Euromonitor analysts emphasise the crucial role of social media channels in reaching and engaging with current and potential consumers, which can be further strengthened through initiatives like Lunar New Year campaigns.
Fflur Roberts, head of luxury goods at Euromonitor International, expressed optimism about the future of luxury goods in China, despite the uncertain path of economic recovery.
Chinese consumer personal luxury goods spending projected to reach USD88 billion by 2028
“While the path of economic recovery in China remains highly uncertain, price growth is projected to gather pace in 2024 on the back of accelerating consumer spending and reviving tourism flows,” Roberts says.
“Indeed, the future overall for luxury goods in China nonetheless continues to look bright for those looking to capitalise on high-spending, digitally savvy and social media-friendly Chinese consumers.
Roberts stated that price growth is projected to gather pace in 2024, driven by accelerating consumer spending and reviving tourism flows.
Luxury brands looking to capitalise on high-spending, digitally savvy, and social media-friendly Chinese consumers should leverage their digital platforms during the festival period, developing creative and interactive campaigns that blend the modernity of the digital landscape with the strong heritage of Lunar New Year.
The spending on personal luxury goods by Chinese consumers has been steadily rising, surpassing pre-pandemic levels by the end of 2022.
It continued to grow year-on-year, reaching USD59 billion by 2023, with a forecasted spending of USD88 billion by 2028.
Hong Kong still a global luxury market, but Chinese shoppers will also shop at home
Hong Kong, another significant market for Lunar New Year events, witnessed a remarkable rebound of 23.2 percent in personal luxury spending by the end of 2022, the highest in the Asia Pacific region. With luxury cars and alcoholic drinks included in the spending, Hong Kong is projected to maintain its leading position in per capita expenditure on luxury goods from 2024 to 2028.
Luxury brands are also shifting their focus to the Chinese shopper within mainland China and the tax-free shopping island of Hainan, rather than relying on international travel.
Roberts emphasised that by embracing the cultural significance of events like Lunar New Year and incorporating these elements into their marketing and product strategies, luxury brands can enhance their appeal and establish stronger connections with consumers, especially Chinese consumers, during festive seasons both at home and abroad, extending to wider consumers in East and Southeast Asia.