In this update to our recent Chinese New Year Preview report, we round up the latest promotions being offered by major marketplaces in China. Companies are Ramping up Promotions on E-Commerce Platforms Spring Festival is a major shopping season in China: As we note later, retail and food-service sales could reach ¥1 trillion ($158 billion) this year. So, it is no surprise that China’s biggest e-commerce platforms, such as Tmall, JD.com and Suning, are all holding Chinese New Year promotions — and many started weeks before the New Year to tap into consumer spending early. Tmall’s most recent Chinese New Year sales feature mobile phones and products from its Tmall supermarket. Its mobile phone sales started on January 29. Tmall supermarket is offering free delivery to Hong Kong for orders above ¥249 (around $37).   [caption id="attachment_70378" align="aligncenter" width="620"] Source: Tmall/Coresight Research[/caption]   JD branded its most recent Spring Festival promotions with two themes “JD mall Nian Huo Jie” (literally “JD mall’s new year festival”) and “mobile phone Nian Huo Jie” (literally “mobile phone new year festival”). The JD mall promotions ran from January 30 to 31, and its mobile phone promotion from January 29 to February 11.   [caption id="attachment_70379" align="aligncenter" width="620"] Source: JD.com/Coresight Research[/caption]   Suning has divided days that lead up to the new year into different promotion themes to keep customers coming back throughout the promotion period. The themes include from “Get New Year goods for the family,” “multiply your red packet” and “Happy Chinese New Year week.”   [caption id="attachment_70380" align="aligncenter" width="620"] Source: Suning.com/Coresight Research[/caption]   Retail Sales During Chinese New Year Golden Week Could Reach ¥1 Trillion Retail and food-service sales during Chinese New Year grew steadily from 2011 to 2018. During the 2018 Chinese New Year Golden Week (February 15-21), retail sales hit ¥926 billion (about $146 billion), 10.2 % higher than the same period in 2017 — and more than double what it was in 2011, according to Ministry of Commerce statistics. We expect New Year Golden Week retail and food-service sales to reach approximately ¥1 trillion ($158 billion) this year; that equates to a year-over-year increase of around 8%, even as overall retail sales growth is slowing.   [caption id="attachment_70381" align="aligncenter" width="620"] Source: Statista/Ministry of Commerce of the People's Republic of China[/caption]   What Do People Buy? In the New Year period, Chinese consumers usually spend on gifts for parents and friends, including clothes, traditional New Year goods (such as gold and silver ornaments, and fireworks), organic foods, smart home appliances and new digital products. Getting together for family dinner is also big, making it a must-spend item.   [caption id="attachment_70382" align="aligncenter" width="620"] Source: Statista/NetEase[/caption]   Also, because the new year is a fortuitous time to house clean to “sweep away the bad luck” gathered over the past year, sales of cleaning materials surge. In 2018, Tmall reported that sales of steam mops increased 320%, sales of dishwashers were up 188%, robotic window cleaner sales rose 169% and sales of robot chefs increased 145%, year over year, during the New Year period.