Powerpoint production

© Kantar Retail 2016
Lunar New Year 2016:
The (Retail) Flames Behind the Fire Monkey
March 2016
Kantar Retail Research Team

Copyright © 2016 Kantar Retail. All Rights Reserved.
501 Boylston St., Suite 6101, Boston, MA 02116
T: +1 (617) 912 2828
howard.zimmerman@kantarretail.com
No part of this material may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photography, recording, or any information storage and retrieval system now
known or to be invented, without the express written permission of Kantar Retail.
The printing of any copies for backup is also strictly prohibited.
Disclaimers
The analyses and conclusions presented in this seminar represent the opinions of Kantar Retail. The
views expressed do not necessarily reflect the views of the management of the retailer(s) under
discussion.
This seminar is not endorsed or otherwise supported by the management of any of the companies
covered during the course of the workshop or within the following slides.

Lunar New Year has widespread appeal across a variety of
audiences, providing key opportunities for retailers and suppliers
to drive excitement and innovation and boost traffic and ticket.
Despite the growing relevance of Lunar New Year globally, it
remains a largely underleveraged season outside its traditional
markets.
Retailers and suppliers missed particularly strong opportunities at
the start of Lunar New Year 2016 to improve localization, speak
to an increasingly culturally curious generation, and potentially
innovate with tie-ins to the Super Bowl in the U.S.
An analysis of the global phenomenon revealed several best
practices that retailers and suppliers can leverage in the future to
capitalize on the holiday in North America and beyond.
3
Executive Summary: Lunar New Year
Source: Kantar Retail research and analysis
This rapidly growing global retail phenomenon is ripe for retail alignment

Historically … Today …
4
‒ Based on the ancient Chinese lunar-solar
calendar, the new year begins on the second
new moon after the winter solstice.
‒ This traditionally family-centric holiday honors
ancestors and deities. Observers engage in
feasts and activities to bring good luck in the
new year and long life.
‒ Elders give red envelopes (hong bao)
containing money or small chocolate coins to
younger people; gifts are exchanged.
‒ Variations of the holiday are celebrated
throughout Asia in countries that use the
Chinese calendar.
A Primer: What Is Lunar New Year and How Big Is It?
Source: Kantar Retail research and analysis, History.com, The Toronto Star, The Drum
Bottom line: The Lunar New Year is currently celebrated by approximately one-sixth of the world’s
population (over 1 billion people and growing), both in Asia and around the world.
‒ The most important social and economic
holiday in China and increasingly beyond is
referred to as “Spring Festival.”
 Includes a week-long vacation so people can travel
home to be with family
 Celebrated as a public holiday in many southeast
Asian countries
‒ Most historical traditions remain part of the
celebrations and drive engagement.
‒ The holiday is a major travel period and retail
traffic driver, with Chinese travelers alone
making an estimated 2.9 billion trips.
‒ Gift giving, red and gold, and numbers with
eight (for luck) are key to seasonal alignment.

5
Lunar New Year Holds Increasingly Powerful Global Appeal
Ringing in the Year of the Monkey outside Asia
Source: Kantar Retail research and analysis, SF Gate, International Business Times, NBC News, City of Sydney
San Francisco
Largest Chinese
New Year
celebration outside
Asia
London
Largest Lunar New
Year festival in
Europe
Sydney
More than 1 million
attended Sydney’s
Chinese New Year
festival in 2016
New York City
Lunar New Year
made a public
school holiday in
2015 by Mayor de
Blasio

6
Implications and Considerations for 2017 Planning
Source: Kantar Retail research and analysis
Missed Opportunities
‒ Tying in overlapping occasion(s). With the start of
the New Year directly coinciding with the Super Bowl
in the United States this year, this major occasion was
largely overlooked — especially in grocery.
‒ Looking beyond typical cohorts. Chinese are not
the only consumers who celebrate this holiday, which
provides a key platform to appeal more broadly to
culturally curious and experience-seeking shoppers.
‒ Appealing to Chinese travelers. As important as it is
to enhance local connections to this holiday, do not
underestimate how much of a travel frenzy the New
Year is for its observers, particularly the more affluent
ones.
Best Practices of the Season
‒ Align with the spirit of gifting. Compelling gift packs
and bonus items stand out to New Year’s shoppers and
drive a more festive environment.
‒ Drive value through targeted discounts. Holidays
typically benefit from promotions, but the New Year
offers unique opportunities to discount according to the
lucky numbers associated with it.
‒ Build Lunar New Year into product innovation. The
best suppliers this season used the New Year to build
demand and excitement for well-planned item launches
and exclusives.
‒ Create an experience, especially a culturally
immersive one. Link to cultural traditions to speak to
observers of the holiday and to educate nonobservers.
Local cultural centers can be key partners.
‒ Shout it out. Drive visibility throughout the store and
online, creating experiences and incentives that support
social media advocacy.

© Kantar Retail 2016© Kantar Retail 2016
7
Align With the Spirit of Gifting

8
Gift Packs at Retail Support the Substantial Gift-Giving
Culture Behind Lunar New Year
Source: Kantar Retail store visits and analysis
Auchan displays Danisa
cookies and gift packs.
RT-Mart displays Danisa
cookies with bonus coffee.

Well-Executed Gift Packs Also Drive a More Festive
In-Store Environment
In a convenient gift bag
at Tesco, this pack of
Chinese porridge with
mixed cereals and
grains includes two
bonus cans of porridge.
9

10
Gift Cards Can Serve a Similar Function
Starbucks commemorates the New Year with a Special Edition card
Source: Kantar Retail analysis , Starbucks

11
Gifting Resonates Particularly Well in Luxury
Monica Vinader promotes exclusive fortune pendant and friendship bracelet
in Mall of the Emirates

12
Prestige HBA Brands Offer Unique Seasonal Sets
Shoppers Drug Mart supports the New Year in stores and online
Source: Kantar Retail research and analysis; retailer website

13
Godiva Offers Limited-Edition Lunar New Year
Collection and $10 Reward Cards Online and In Store
Source: Godiva, Kantar Retail analysis; retailer website
Available in select boutiques
throughout North America
Year of the Monkey
chocolates infused with
variety of teas

14
Drive Value Through Targeted Discounts

15
Heavy Emphasis on Special Lunar New Year Pricing
In China, Particularly at Walmart
Multiple gift packs on
discount at RT-Mart
Major focus on price
promotions at Walmart

16
UK Retailers Align Discounted Pricing with “New Year”
Shelf Tags and Special Promotions
Waitrose also flags
items with “Perfect
for New Year” tag

17
Lidl Builds Lunar New Year into the Product
Catalogue and Range
Lidl Romania catalogue Lidl UK chinese range

18
Uniqlo Innovates Prices With “Lucky” Numeric Schemes
Like $8 Discounts
Source: Kantar Retail analysis, Uniqlo
Promotions available
in select locations,
likely aligned to local
demographics
Special
promotions extend
to website too

19
Similarly, Shop.ca Touts $8.88 Off Purchases of $100+
Source: Kantar Retail research and analysis; Shop.ca

20
Dubai Mall Integrates In-Store Offers Through
Its Online Platform
Source: Kantar Retail analysis, Dubai Mall
AED300
voucher when
you spend
AED3,000
Exclusive CNY
collection and
AED200 voucher
on AED988 spend
L’Occitane celebrates
CNY with an
exclusive gift

21
Alongside Game Day and Valentine’s Promotions,
Loblaws Offers New Year Savings and Solutions
Source: Loblaws, MarketTrack (Feb. 5, 2016, promotions)
Recipe integrated into promotion Deals span categories P&G links coupons to the season
In addition to stocking up on hot pot meats, dumplings, and specialized candies, Loblaws also
rounded prices on select products connected to Lunar New Year to end in the number eight.

22
Build Lunar New Year Into Product Innovation

23
Suppliers Commemorate the New Year in China
With Exclusive and Eye-Catching Packaging
Carrefour offers an exclusive
Kinder pack with monkey.
CP Lotus touts unique
Ferrero pack.
New Year’s
Eve dinner
Going
home Promise
With
parents
Customized packs of skin
moisturizer at Walmart let shoppers
choose messages that speak most
to their New Year plans.

Unique and Innovative New Year’s Pallets and
Displays at CP Lotus
24

25
Apple and H&M Use Lunar New Year to Launch Exclusives
Source: Kantar Retail analysis, International Business Times, Mac Rumors, Elle
Apple sells exclusive Apple Watch sports models
for the New Year.
‒ Special models were available in China,
Hong Kong, Malaysia, Singapore, and
Taiwan.
‒ Models in yellow gold aluminum and silver
aluminum with (PRODUCT)RED sport
bands were available from Jan. 15 to Feb.
22.
H&M launches Chinese New Year campaign with
a Chinese model and South Korean singer.
‒ H&M rolled out a New Year collection for
men, women, and children on Jan. 21.
‒ Items in the New Year line included a floral
flare dress in festive red and a monkey-
printed sweater.

26
Vans and Adidas Generate Strong Excitement Leading Up
to New Year Launches
Source: Kantar Retail analysis, The Boombox, Sneakerbardetroit.com, Hypebeast.com
Vans introduces a Year of the
Monkey collection.
‒ Three themed sneakers
‒ Inspired by China’s Year of the Monkey
commemorative stamp releases in
1980, 1992, and 2004
‒ Available as early as December 2015
Adidas debuts the Ultra Boost
“Chinese New Year.”
‒ Ultra Boost “Chinese New Year” (top left)
featuring special tongue tag with Chinese
characters, multicolor toe area
‒ Bright red Tubulars (bottom right)
contrasted with white soles and gold
accents; heel counters embossed with
monkey faces

27
Chinese New Year Reigns Prominently in Fashion
Source: Kantar Retail analysis, Nordstrom.com, Elle.com
Several fashion blogs and media outlets
picked up on this and related offers for
Chinese New Year. In at least one case, a
style blog by a Chinese woman in the U.S.
linked to this offer on Nordstrom.com.
More than in grocery, the New Year features
prominently in style and fashion platforms.
Designers increasingly use the holiday to deliver newness

28
Create an Experience

29
In China, Eye-Catching Displays Excited and Engaged
Ferrero draws shoppers
in at Carrefour.
Haagen-Dazs creates an
experience at Carrefour.
Tesco features a
store-in-store
display.
Fresh food area: “Show
your cooking skills for
New Year’s Eve dinner.”
Tesco offers a “Get
your red packet” promo.

30
Lucky Draws Further Add Excitement
Carrefour China CP Lotus

31
Pepsi Goes Viral, Aligns Chinese Campaign to Several
In-Store Initiatives for This Key Holiday
Source: Adage, Kantar Retail store visits and analysis
Compelling display
at RT-Mart (China)
Strong resonance across audiences, saw >15
million views in one week via nostalgic “Bring
Happiness Home” campaign
Campaign included spots with
celebrities and a limited-edition
monkey-emblazoned can sold
on JD.com.

32
Tesco and Walmart Drive Excitement With Displays
In Fresh — an Important Holiday Focus Area
Dried seafood display
(Tesco China)
Seafood festival
(Walmart China)

33
Better Yet, Provide a Culturally Immersive Experience

34
‒ Flowers are a symbol of Lunar
New Year. Here, this wall of
flowers provides shoppers with a
backdrop to meet and take photos.
‒ Several malls and retailers in
Canada educate and drive
excitement around this holiday
with lion dances, martial arts
demonstrations, calligraphy
sessions, tea sampling, Chinese
music, and interactive games.
‒ Apple also offered free one-
hour workshops (some in
Mandarin and Cantonese)
demonstrating how to create
custom online greetings.
Educating Shoppers About Chinese New Year
Presents an Opportunity to Drive Further Demand
Source: The Toronto Star (February 2016)

35
From Retailers to Malls, Key Shopping Destinations
Turn to Traditional Activities to Engage, Educate Shoppers
Source: Kantar Retail store visits and analysis; Union Coop
Mall of the Emirates engages
shoppers with a traditional dance
ceremony.
RT-Mart in China drives
excitement and engages
by aligning with a culturally
immersive experience.
Union Coop (UAE) kicks
off the start of the year
with its own ceremony.
Mall of the Emirates engages
shoppers with a traditional dance
ceremony. Union Coop (UAE) kicks
off the start of the year
with its own ceremony.

36
‒ Dubai Mall is just one of many malls in
the UAE that relies on a substantial
Chinese shopping and tourism segment.
‒ Other shopping spaces like Yas Mall
celebrated the New Year in their own
way with performances like the UAE’s
first lion pole dance, lantern decorations,
authentic Chinese garden and tree of
wealth, kung fu workshops, acrobatic
shows, calligraphy, and Chinese lantern
making, plus a special “shop and win”
activation.
Dubai Mall Puts Its Own Twist on a Traditional Dance
Source: Kantar Retail analysis, Dubai Mall, Emirates247.com
Visible to the public in Dubai Mall via Dubai Aquarium and Zoo, divers perform
underwater versions of the time-honored Dragon Dance in the main aquarium. Each 15-
minute dance was performed hourly from Feb. 4-20.
Innovates with an underwater version of the Dragon Dance

37
Food Represents a Particularly Strong Opportunity for
Cultural Integration With the Holiday
Source: P.F. Chang’s

38
Shout It Out: Drive Visibility Throughout the Store

39
Key Retailers and Malls Go Big in New Year Branding
The Dubai Mall greets shoppers with a
shout-out (and promotion) for the New Year.
In China, Carrefour embellishes the entrance
with lanterns.
CP Lotus incorporates New Year imagery throughout.

40
Some Focus on Festivity While Others Focus on Price
Meanwhile, Walmart opts for a low-
price focus over Chinese New Year.
RT-Mart covers its physical store with
decorative lanterns (above). The festive
atmosphere continues inside (right).

41
CP Lotus Adjusts Operating Hours, Incorporates
Messaging on the Physical Ground
CP Lotus adjusts operating hours to
account for the high-volume holiday.
Seasonal product nutrition facts
stand out with floor promotions.

42
Carrefour Does Not Shy Away From Explosive
Lunar New Year Messaging and Imagery

43
Macy’s in New York City Gets On Board
With the New Year in a Big Way

44
Auchan Promotes Across Categories
Source: Kantar Retail store visits and analysis, International Business Times, LA Times
“Kung Fu Panda 3”
deliberately positioned its
release date with the Lunar
New Year, the biggest movie-
going time in China. The film
set a new one-day box office
record with USD100.5 million
worth of tickets sold.
In this case, it ties in to the seasonally relevant movie “Kung Fu Panda 3”

45
Drive Online and Social Media Penetration

46
Retailers Like Shop.ca and Shoppers Drug Mart
Celebrate the Year of the Monkey Online
Source: Kantar Retail analysis, Shop.ca, Shoppers Drug Mart
Shop.ca features the New Year prominently on its home
page, with offers spanning from nutrition to jewelry.
Shoppers Drug Mart creates a “Shop Chinese New
Year” landing page featuring red and gold gifts.

47
Coach Takes Its New Year Message Online
With Item Curation and a Fun Behind-the-Scenes Film
Source: Coach.com
In its film, a white
monkey comes
to life after hours
in a Coach factory.
Lunar New Year
items feature a
collection of
red- and gold-
related offers.

48
Amazon Offers a Series of Free Chinese New Year
Video Shorts
Source: Amazon.com

49
‒ On trend, Origins promotes a printable Lunar
New Year coloring sheet.
‒ It encourages followers to post an Instagram
of their art work for a chance to win up to $500
in products.
‒ How might a similar concept be applied to
other channels (e.g., Lunar New Year-inspired
cooking contests)?
On Social Media, Origins Creates Incentives
For Followers to Post on Instagram
Source: Kantar Retail analysis, Origins

50
Emphasizing Education and Experience,
Mall of the Emirates Uses Twitter to Spotlight the New Year
Source: Kantar Retail analysis, Mall of the Emirates
Daily entertainment
provides an ideal
vehicle for social
media mention.
Educating
consumers about the
New Year helps
drive interest and
excitement.

51
Snapchat Marks the Holiday With Customized Filters
Source: Kantar Retail analysis, Snapchat
This type of effort is something a retailer or manufacturer could easily apply digitally or in-
person via images and experiences that prompt shoppers to capture and share the moment.

For further information please refer to
KantarRetailiQ.com
Contact:
Sara Al-Tukhaim
Director
T: +1 (617) 912 2859
sara.altukhaim@kantarretail.com
@saraaltukhaim
@kantarretail
Amy Koo
Principal Analyst
T: +1 (617) 912 2872
amy.koo@kantarretail.com
@amykooKR

Powerpoint production

Recommended

Recommended

More Related Content

Recently uploaded

Recently uploaded (20)

Featured

Featured (20)

Powerpoint production

Editor's Notes