Nianhuo revenue galloping in with Year of Horse

With the Year of the Horse just around the corner, people in Shanghai are busy stocking up on nianhuo, or New Year's goods, that families traditionally prepare ahead of Spring Festival — including foodstuffs, clothing, home decor, and gifts for relatives and friends.

Instead of going to brick-and-mortar stores, online purchasing of nianhuo merchandise has become a major trend as consumers prefer to get products delivered to their front door by using popular e-commence platforms.

Taobao said that since it launched nianhuo festival from Jan 19 to 26, its sales of such goods surged 201 percent year-on-year.

On Freshippo, a grocery and fresh goods retail chain under Alibaba Group, purchases of nianhuo are seeing exponential growth. Sales of Freshippo's nianhuo package boxes surged by 467 percent week-on-week, boxes of frozen durian jumped 226 percent and nut gift boxes were 168 percent higher. Orders for babaofan (rice pudding with eight savory ingredients) along with two-piece sashimi with salmon were also popular items.

Sought-after gift options such as fresh milk and Chilean cherries have become must-have selections. Sales of fresh milk increased 232 percent while cherries surged by over 228 percent, Freshippo said.

Gao Chengyuan, president and CEO of Guangzhou TY Marketing, said: "The new trend of purchasing nianhuo in Shanghai exhibits distinct characteristics of the times and an upgraded consumption mindset. The increasing popularity of online purchasing channels reflects consumers' ultimate pursuit of convenience."

According to Taobao, this year, the trend of "light cooking" is being further displayed. Sales of ready-to-cook ingredients, expensive seafood, freshly cooked edibles and holiday-themed beverages surged 259 percent, 271 percent, 225 percent and 250 percent, respectively.

"New Year goods are no longer merely a collection of material items, but also a representation of emotions and cultural heritage. The trends of 'light cooking' and 'empty package travel' are direct manifestations of modern lifestyles and consumption concepts.

"Overall, the new trend of purchasing nianhuo in Shanghai is a comprehensive reflection of the maturity of the consumer market and the progress of consumer attitudes, providing businesses with new market opportunities and development directions," Gao said.

To better offer nianhuo to consumers, Gao suggested merchants keep up with the development of online channels and optimize online sales platforms and services.

"In terms of product development, they should focus on the design and quality improvement of exquisite gift boxes. In addition, merchants can increase the research and promotion of ready-to-eat meals and instant foods, and develop more products that are easy to carry and store," he said.

Apart from convenient e-commence platforms, many still purchase nianhuo offline to enjoy a sense of ritual.

"Online shopping offers lower prices and convenience, while shopping in brick-and-mortar supermarkets provides me with a more festive atmosphere during Chinese New Year. It is a ritual to shop around, buy stuff and prepare for the holiday," said Mo Cha, a 33-year-old office clerk in Shanghai.

zhengyiran@chinadaily.com.cn