How the Australian retail industry is embracing Chinese New Year

By Uwear

With an increased inventory and several new customers at every turn, Chinese New Year is having a big impact on the Australian retail sector.

Although shopping isn’t normally a major part of the Aussie economy, an influx of Chinese tourists has changed that. Presently, the Chinese New Year is being called by many as the largest yearly human migration in the world.

RELATED TOPIC: 10 Sydney Restaurants Celebrating the Lunar Feast for Chinese New Year

There is a record-breaking estimate of six million Chinese residents expected to travel overseas during the week-long holiday. According to popular Chinese travel site Ctrip, Australia ranked 10th in most popular destinations for the holiday, with Thailand, Japan and Korea as the top three, respectively.

Although 10th place seems irrelevant, Australia hosted about one million of the estimated 120 million Chinese who traveled abroad last year, which makes up about 30 per cent of global tourist spending. That is an increase of 22 per cent from the previous year.

RELATED TOPIC: How Tourism Will Help Replace Void Left from Exports

“Last year’s Chinese New Year, which also fell in February, saw a 57 per cent increase in Chinese visitors,” said Tourism Australia managing director John O’Sullivan. “And when you consider that each Chinese holidaymaker is spending over $5000 per visit, that is putting a very significant amount of money into the Australian economy.”

A recent survey by Hong Kong investment bank and broker CLSA reveals Chinese tourists regard Australia as the 15th most popular shopping destination, a rise of four spots from the previous year.

RELATED TOPIC: How 'cloud passports' will revolutionise international travel

Several Aussie retailers are creating marketing strategies to take advantage of the surge by stocking itself full of Lunar New Year gifts and apparel. One is Woolworths-owned David Jones, which as part of its partnership with the Australian China Fashion Alliance, will launch a Lunar New Year designer collection this week.

The department store also has a promotion with UnionPay, the most common card used in mainland China. For every $1000 spent with UnionPay, customers receive a $100 gift card.

RELATED TOPIC: Top 10 online retail outlets in Australia

Luxury fashion outlet Harrolds has begun using social media platforms Weibo and WeChat to communicate directly to consumers and alert them of the arrival of new stock. This has become more and more common in recent years, as Chinese shoppers often view social media as the best way to research products.

Meanwhile, Westfield shopping centre in Sydney’s central business district (CBD) has begun adding Chinese-speaking retail employees, signs in Mandarin and Chinese attendants at the information centre to provide directions and advice.

“Chinese New Year is becoming as big as Christmas for many of our retailers,” said Westfield Sydney Centre Manager Alison Pearson. “They are seeing this as a really significant growth opportunity.”

Let's connect!  

Check out the latest edition of Business Review Australia!

 

Share

Featured Articles

Top 10 fastest growing companies in Asia-Pacific

From Singapore to South Korea, Hong Kong to India, and spanning fintech, food and energy – these 10 businesses are seeing their revenues rise, and fast

Top 10 best-performing Australian companies: mines to banks

Among Australia’s largest companies by market cap are the country’s Big Four banks, a tech startup that successfully scaled, and two firms with female CEOs

Top 10 richest Southeast Asia: how they made their fortunes

From Singapore’s paint tycoon to Malaysia’s sugar king, we round up the 10 richest people in Southeast Asia – and investigate how they made their billions

Will moonlighting ever become accepted practice in India?

Human Capital

New YouTube CEO Neal Mohan joins surge of Indian-origin CEOs

Leadership & Strategy

Ex Infosys President Ravi Kumar is the CEO Cognizant needs

Leadership & Strategy