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2017 Chinese New Year Sales: Fuzhou

Over this year’s Spring Festival period, Fuzhou’s shopping centres experienced decidedly mixed fortunes. While the city’s upmarket and low-end malls enjoyed a 10% year-on-year rise in takings, many of its mid-range malls saw their sales decline.

Photo: A New Year performance by Fuzhou primary school pupils. (Xinhua News Agency)
A New Year performance by Fuzhou primary school pupils.
Photo: A New Year performance by Fuzhou primary school pupils. (Xinhua News Agency)
A New Year performance by Fuzhou primary school pupils.

Overall, figures from the Ministry of Commerce showed that, from New Year's Eve to the sixth day of the Chinese New Year (27 January-2 February 2017), the total takings of retail and catering enterprises across the mainland exceeded RMB840 billion, up 11.4% over the same period last year. Traditional New Year goods, eco-friendly food, seasonal clothing, gold and silver ornaments, smart energy-saving home appliances and several new digital products were among the best-selling items for 2017.

As part of the survey, staff at the HKTDC's mainland offices - Beijing, Dalian, Qingdao, Xi’an, Shanghai, Hangzhou, Nanjing, Wuhan, Chongqing, Chengdu, Guangzhou, Fuzhou and Shenzhen - selected a number of representative local shopping centres and monitored their performance before, during and after the Chinese New Year sales period in order to ascertain just how their respective local consumer markets fared this year.

In order to get an overview of consumer spending patterns in Fuzhou during the Spring Festival period, HKTDC’s Fuzhou Office monitored three shopping centres. The findings of its survey are summarised below:

Shopping Centre

Wanda Plaza

Dongbai Group

Yonghui Supermarket

Grade

High-end

Mid-range

Low-end

Top-selling items (top 10)

Jewellery, gold ornaments, branded ladies’ wear, branded men’s wear, branded children’s wear, luggage, men’s footwear, women’s footwear, underwear, accessories, perfume

Jewellery, branded cosmetics, branded ladies’ winter wear, lingerie, branded men’s winter wear, branded ladies’ spring wear, branded ladies’ autumn / winter footwear, sportswear, sports shoes, sporting equipment, outdoor sporting goods

Live and fresh produce, dried food, gifts, household goods, garments (low to medium- range chain store brands), kitchenware, home appliances, children’s toys, luggage

New top-sellers (RMB)

500-20,000

300-1,500

100-3,000

Average spend per customer (RMB)

1,850

650

650

Year-on-year % change in total retail sales

Up 10.2%.

The area where the plaza is located has not been affected by the urban construction work in progress in Fuzhou. Instead, the plaza benefitted from a diverted customer flow from other commercial districts.

Down 6.88%.

Economic recovery in 2016 fell short of expectations and the economic growth of the country continued to slow steadily. Against this backdrop, sales in the department store sector remained at low level, with the whole sector undergoing a period of consolidation, reinvention, adjustment and transformation. The Dongjiekou commercial district, the site of the company’s flagship, was also affected by the construction of the city’s metro line.

Up 16.8%.

Increased revenue due to:

  1. Cuts in company’s operating costs.

  2. Increase in non-operating income from the sale of Lianhua Supermarket shares.

  3. Profit generated by Bravo, the company’s newly acquired supermarket brand.

Promotional tactics

  1. Organised Spring Festival promotional activities, offered free cake sampling and discounts of up to 80% on all brands in the store.

  2. Gave away red packet coupons, miscellaneous gifts, and lucky draw prizes, such as family cruise trip coupons.

  3. Lucky draw prizes, such as free meal coupons and free movie tickets, for customers spending Rmb300 or more.

  1. Organised neighbourhood festivals in communities in the vicinity of the department store in order to promote sales.

  2. For a single purchase at RMB800 or above, a New Year gift bag was offered, plus the chance to win an iPad in a lucky draw.

  3. From the first to the seventh day of the New Year, one lucky customer (who may not have made any purchase at the store) was drawn randomly each day.

Price hikes induced by the holiday effect were somewhat moderated by offering products sourced directly from place of production and from overseas.

Online vs in-store sales

No online activity.

No online activity.

In a move intended to integrate online and offline sales, the Yonghui supermakets in 12 cities linked up with JD Daojia, China's largest online direct sales company. Yonghui has also launched a home delivery service in Chongqing, Shanghai, Beijing and Fujian, with e-payments also accepted.

Online sales data

Not applicable.

Not applicable.

Yonghui’s WeChat store registered a 13.2% year-on-year growth in sales.

 

Fuzhou office

Content provided by Picture: HKTDC Research
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