Santa's sleigh is more like a bandwagon, and it's about time chinese companies jumped on board

 

More than 160 countries celebrate Christmas, which stretches way beyond those recognized as Christian. Countries such as Jordan and Pakistan, for example, designate December 25 as an official holiday for Christmas. While the religious significance of this period should always be respected, Christmas is probably the most globally celebrated period of the year. Christmas celebrations are also spreading and fast becoming adopted by many developing countries such as China and India.

Christmas around the world is a time for family, friends and fun but, above all, a time for over-indulgence. A time when hedonic shopping, often with others, dominates and economic reality is sometimes forgotten temporarily.

While there is no Christmas holiday across the Chinese mainland and a very small percentage of Chinese citizens consider themselves Christians, more and more Chinese people celebrate Christmas-like festivities and customs. Increasing numbers of younger Chinese people are adopting Western Christmas traditions such as sending cards, exchanging gifts and hanging stockings full of presents for the children. Chinese people can even be found kissing under the misseltoe.

Furthermore, the retail shopping environment across Chinese cities resembles more and more that of a typical Christmas-decorated Western retail store.

However, many Chinese companies have yet to fully capitalize on this once-a-year market opportunity. Not only is this an export opportunity but also, with a growing number of (usually younger) Chinese people cheerfully over-indulging during the Christmas period, an ever attractive domestic market opportunity.

Indeed research suggests that in November and December many UK businesses achieve consistently between 23 percent and 30 percent of their sales for the entire year. Not only does this statistic alone confirm just how great this sales opportunity is but it also informs us that the Christmas period, when it comes to business, should now include most of November as well as December.

Younger Chinese value Christmas more and more. As China's economy, now the second largest in the world, continues to grow, so does a more inquisitive attitude toward life and culture outside China, especially among younger generations. However, even though the shops and shopping centers across Chinese cities are festooned with Christmas paraphernalia, few brands on sales in Chinese stores appear to position themselves as Christmas gifts. Consumer research for many years has confirmed that Chinese shoppers are often motivated by the desire for self-reward, however recent research points toward an emerging trend of gift-giving. Combine this gift-giving tendency with the ongoing need for fashion and status and we have a huge opportunity for Christmas gift-giving.

Chinese brands overseas

Despite some success internationally for more and more Chinese companies, such as Haier, Lenovo and Wahaha, there are no signs of any attempt at repositioning for the Christmas period. European and American shoppers come out in their droves at this time of year and over-indulge without fail, even during times of economic hardship. Christmas sales across the Western world may well be down this year compared with last year but the surge in sales will still prove considerable compared with other times of the year.

Consumer motivation, however, centers on finding the perfect gift for the closest friends and family.

The following guide will help any attempt at rebranding specially for the Christmas period.

Christmas branding: 8 key factors

Websites: no Chinese companies alter their websites with any Christmas decorations or other associations such as color schemes or music. Haier, Lenovo, Wahaha and many more of the most international Chinese companies appear to either ignore or overlook the need for any Christmas association. Contrast this with the plethora of Christmas trees, scenes and familiar characters all over most of the most popular web sites over the Christmas period, such as Tesco.

Lenovo has altered their main website with the phrase, "Tis the season for deals", which appears to refer to the Christmas season indirectly but there are no pictures of colors and music associated with the Christmas season.

Younger consumers, the most active during the Christmas period, make heavy use of the Internet in order to reduce search cost and time before going on a Christmas shopping spree. As a result, a suitably adapted website for the Christmas period is an essential component of any Christmas branding program.

Christmas music: in addition to the most common Christmas carols there are other well-known Christmas songs that automatically trigger positive association among consumers. This should be considered as an important part of any Christmas branding program, either as part of in-store music and/or as part of any Christmas advertising program.

Celebrity endorsement: suitable celebrities are those who enjoy an image of "fun" and "family" and these are often used in marketing promotions at Christmas time.

Gift-wrapped: presentation is key as always but needs to reflect colors and symbols of the Christmas period. Many Chinese retail environments include posters and pictures of typical Christmas scenes but few brands are wrapped in typical Christmas wrapping paper.

Hedonic shopping value: Christmas shopping is perhaps the most emotional shopping experience of all. The brand proposition, therefore, needs to adapt in an attempt to satisfy the consumers' need for pleasure and fun from the shopping experience as well as perceived economic value from anything purchased. Christmas branding, therefore, needs to emphasize brand values: "generosity", "caring", "romance" and "excitement".

Family togetherness: Christmas is more than a gift-giving time, it is essentially about family togetherness which makes it uniquely special. Christmas branding, therefore, really does need to promote the overall benefit of family togetherness, whether this is across the nuclear or extended family.

Follow the trends: younger generations, especially children, change their Christmas wish list from year to year, or even month to month, and even during the Christmas period. Apple, Xbox and PlayStation may top the lists of most teenage children this year but so did Nokia only a year or so ago.

Recognize "pester power": consumer spending over the Christmas period not only revolves around gifts but gifts for those beloved children in the family, and these children most definitely know this and try every trick in the book to manipulate parents, friends and family members in order to receive precisely what they want. Any Christmas branding program, therefore, must target both consumers (the kids) and the deciders and buyers (parents, friends, family members).

Christmas in China will become a bigger and bigger celebration with more and more Chinese people taking part in a family, fun and exciting experience. It is, therefore, imperative that Chinese companies adapt their branding fully to this uniquely different time of the year.

Furthermore, Chinese companies continuing international expansion will benefit immensely from adaptation of all aspects of their branding to the Christmas period in Western markets.

Christmas may have lost its religious significance but its popularity simply grows and grows. A branding opportunity, gifted from heaven.

Finally, a surefire way of increasing demand during the Christmas period even further would be the expectation among Chinese children of a sack full of presents come Christmas Day.

The author is a researcher at Nottingham University's School of Contemporary Chinese Studies. The views expressed in the article do not necessarily reflect those of China Daily.