A Christmas story: Chinese shoppers stock up on gifts

Coasting on the growing popularity of non-religious Christmas-time celebrations, the consumer spending season, which began Nov 11 (Singles Day) is expected to extend until New Year's Day in China, industry insiders say.

And even Chinese consumers, not just the West, are increasingly buying up Christmas items produced in Yiwu in Zhejiang province, East China.

Known as "Santa's Workshop", Yiwu has seen a spike in the sale of Christmas decorations this year as Chinese consumers prefer the smaller trinkets to bigger-ticket items popular elsewhere.

On Yiwugou, an online retail platform for Yiwu manufacturers, the top five domestic sales items this year are fake berry plants, snowman table decorations, gift cards, snowmen made of lights and balloons. On Taobao, the online marketplace of Alibaba, the top three Christmas-themed items are socks, LED lights and window stickers.

"Smaller Christmas gifts like headbands and socks are preferred by domestic buyers, compared to overseas buyers who prefer large plush Santa toys and Christmas trees," says Zhu Guohua, a Christmas store owner in Yiwu who has been in business for about 15 years.

Zhu says the number of foreign customers visiting his store, as well as other stores in Yiwu, has increased by 5 percent this year. He attributed the increase to an eagerness to complete their purchases before prices increase due to higher US import tariffs on Chinese goods.

Zhao Ping, director of research at the Academy of China Council for the Promotion of International Trade, says unlike in overseas markets where Christmas is a religious festival and a time for family reunions, consumers in China tend to use the year's last week to inject some cheer into the dim winter by buying low-cost decorative items.

Hence, Christmas trees and large Santa products, which are relatively costlier and require more time to install, are not as popular in the domestic market as they are elsewhere.

"Christmas-time celebrations are more commonly observed among younger people who prefer to hang out with friends and exchange gifts," Zhao says. That entails outdoor activities and, from late October, the sense that Christmas is coming drives shoppers to restaurants and malls. "In recent years, Christmas has been a great sales season for Chinese consumers, especially those who prefer foreign brands," Zhao says. "However, Christmas sales are less popular than Singles Day sales and new year sales.

"Chinese consumers are getting more rational in their purchases. They know there will always be a next sales season. They are also less price-sensitive as their disposable incomes have risen," he adds.

On that note, businesses such as cosmetics giant Yves Saint Laurent are enhancing their marketing, branding and promotional activities around Christmas, focusing on things like limited-edition collections, according to a recent report from consulting firm Frost& Sullivan.

Social media is also doing its part. Social media in recent years has sparked a rise in digital channel advertising by brands around Christmas, market insiders say.

YSL's Sparkle Clash lipstick collection, for example, was an instant sellout during the 2016 Christmas season and remained a top recommendation by social media influencers.

Zhang Yang, 26, a Beijing-based film producer, says she buys makeup and home appliances after watching short videos on an app called Douyin, which is known as TikTok in overseas markets. "I follow several social media influencers on Douyin," she says. "They specialize in makeup tutorials, cooking tutorials and pet products. I tend to buy based on their recommendations and online reviews.

"I can see Christmas products becoming more visible on Douyin," she says. "It's a surprise. I mean, there are still two months to go before the holiday."