Feb. 19 marked the first day of Lunar New Year (also known as the Chinese New Year or Spring Festival). That is the biggest holiday and probably the most important festival of the year for many Asians (e.g., Chinese, Vietnamese and Korean). In a way, the Lunar New Year in Asia is like Thanksgiving and Christmas in the U.S., in which families gather together to celebrate the past and pray for a prosperous new year.
For many Mainland Chinese, the Lunar New Year also means the longest holiday in a year, ranging from seven to 15 days (I am not sure if that is the case in Vietnam, South Korea and other places where people celebrate Lunar New Year). As a result, many Mainland Chinese are traveling during the Lunar New Year holiday to visit friends and family. The Chinese government expected to see 3 billion passenger trips by plane, train and car in a 40-day period around the Lunar New Year.
Besides domestic trips, there is also a growing trend for Mainland Chinese to travel abroad during the Lunar New Year holiday. In fact, 2015 marks the first time when there are more Mainland Chinese planning to travel overseas during the Lunar New Year holiday than those planning to travel within Mainland China for leisure purposes (40 percent vs. 37 percent, according to China Daily).
Certainly, many tourist towns in Southeast Asia become the top choices for Mainland Chinese during the Lunar New Year holiday, but can the U.S. become another top tourist destination?
The new visa agreement between the U.S. and China in 2014 has definitely made it easier for Mainland Chinese to visit the U.S. I noticed some plausible changes this year in Southern California, in which more businesses now recognize the significance of Lunar New Year.
When I was in Nordstrom, for example, I noticed plenty of Chinese signage throughout the store, saying "Gong Xi Fa Cai" or "Gong Hey Fat Choy" — the most common greeting/wish among Chinese during the Lunar New Year. I also heard there were fireworks and small parades that celebrated the Lunar New Year across the country (often in Chinatowns).
But that was probably about it. Observing from this year's Lunar New Year celebration, I honestly do not think we have done enough to capture the business opportunities that could be possibly created by the Lunar New Year.
Mainland Chinese, for example, are different from other consumers because the Chinese government blocks almost every single social media website in Mainland China, making WeChat and Weibo possibly the only two "social-media-alike" platforms available for communications. So, if a company wants the customers from Mainland China, the business or brand must actively engage their target customers on WeChat and Weibo.
According to International Business Times, WeChat users sent out 1.01 billion cash-filled red envelopes within the first five hours of the Lunar New Year (from 8 p.m. to 12:48 a.m.). Assuming on average, each red envelope is filled with one RMB only, that is an equivalent of 1.01 billion of RMB — roughly $163 million. What a huge transition. Also, what a humongous business opportunity.
So, when Americans do not spend as much in retail stores after they finish the Christmas shopping, or when the Americans do not travel as often in January and early February after their winter vacation, doesn't it make the perfect sense to reach out to Chinese customers?
Through WeChat, you have the opportunity to help them with their shopping and travel needs during the Lunar New Year holiday. Surely, WeChat will remain as critical even after the Lunar New Year, wouldn't you agree?
