CHINA IN BRIEF (Jan 27, 2025): The CHINESE NEW YEAR Edition, Chinese Consumer News

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YOUNG SPENDERS RESHAPE CNY RETAIL

Young consumers aged 25-34 are driving new Chinese New Year shopping trends, with a focus on emotional value and health-conscious products. Pre-made dishes and health-themed gift boxes are popular, while traditional snacks are being reimagined with creative packaging. Retailers like Hema and Sam's Club report strong sales of unique items like fortune-themed aromatherapy sets and rotating music box gift sets. This shift suggests traditional Chinese New Year retail must innovate to remain relevant to younger generations who value both heritage and modern convenience.

European wine and ham, South American nuts and Australian seafood are favoured by young shoppers.

PET INDUSTRY SEES CNY BOOM

Pet-related Chinese New Year spend is surging in China, with pet New Year's Eve dinner packages and "pet hotels" for travelling owners becoming new trends. One Guangzhou pet shop's feast package, priced from ¥168, including 10 dishes was fully booked shortly after launch, while sales of pet New Year merchandise on Taobao saw dramatic increases. China's pet industry continues robust growth, with the market size exceeding ¥300 billion in 2024 according to the China Pet Industry White Paper. Cat-related spend grew 10.7% to ¥144.5 billion, while dog-related spending increased 4.6% to ¥155.7 billion.

A "cat hotel" in Shanghai, with "rooms" priced between 200 and 500 RMB, sold out their CNY bookings in 2 days after November launch.

THAILAND DEFIES SAFETY CONCERNS & READY FOR CNY HOLIDAY

Thailand's tourism shows resilience with Chinese visitors leading foreign arrivals, despite the attempted kidnap of a Chinese movie star that sparked safety concerns. Data from January 13-19 shows 148,570 Chinese tourists visited Thailand, a 9.26% increase from the previous week, making China the top source market. While some Chinese tourists are opting for domestic alternatives like Xishuangbanna, Thailand's tourism ministry reports steady growth thanks to enhanced safety measures and visa-free policies.

Paetongtarn Shinawatra, Thailand's Prime Minister, is scheduled to visit China next month to inject further confidence into the already robust tourism market.

SHORT DRAMAS DOMINATE CNY ENTERTAINMENT

China's short-form “micro drama” industry is set for a major Lunar New Year battle, with major platforms including Douyin, Red Fruit, and Tencent Video launching over 100 new titles during the holiday period. Market data shows short dramas surpassed movie box office revenue in 2024, reaching ¥50.44 billion, with 576 million viewers. The Spring Festival releases span multiple genres including historical, urban romance, and youth themes.

With each episode averaging only 2-minute long, "micro dramas" offers a less demanding form of entertainment that can be enjoyed any-time, any-where, any-when.

WECHAT ADDS FREE VOICE TO RED PACKETS FEATURE

WeChat has unveiled new features for the 2025 Spring Festival, allowing users to create customized digital red envelope covers using their own photos and add voice messages to red packets for free. When receiving a voice message red packet, the audio greeting will automatically convert to animated text. Users can also set these greetings as their WeChat status, with a "fortune" character appearing next to their name.

WeChat's digital red packet feature has become a "new tradition" for the social media generation in China.

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People's Park is a newsletter that offers unique insights into China's dynamic market - the world's second largest economy. Founded and edited by Frank Ye of Brands Without Borders Ltd., the publication weaves together perspectives from journalism, anthropology, marketing, e-commerce, and branding to help readers navigate and understand China's rapidly evolving business landscape. Subscribe here: 

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