Chinese New Year (CNY) is the biggest celebration of the year for Malaysian consumers and retailers alike.<\/h2>\n
![](\"https:\/\/blog.commissionfactory.com\/hs-fs\/hubfs\/undefined-4.jpeg?width=1200&name=undefined-4.jpeg\")
<\/p>\n
This week-long holiday, which usually falls between late January and mid-February, gives brands the perfect opportunity to boost sales with targeted marketing promotions and deals.<\/p>\n
While the COVID pandemic hasn’t stopped Malaysians from shopping for CNY, it has changed how they shop, driving them to increase their online shopping over the past three years. As such, the holiday promises revenue increases for brands that invest in online shopping platforms.<\/p>\n
Let’s explore the latest trends in Malaysian shopping for this major holiday and reveal some key brand strategies to engage consumers and grow revenue.<\/p>\n
Table of contents:<\/h3>\n
\u00a0<\/p>\n
<\/p>\n Chinese New Year (CNY), also referred to as the Lunar New Year and the Spring Festival, is perhaps the biggest and most important annual festival for Chinese communities worldwide. More than 20% of the world’s population celebrates this holiday.<\/p>\n CNY is a significant event on the Malaysian calendar, not least because those of Chinese ethnicity accounted for 22.4% of the population in 2021<\/span><\/a>.(1)<\/sup><\/span><\/p>\n CNY does not fall on the same date every year and is determined by the Chinese Lunar Calendar. It falls within one day of the second new moon before the spring equinox moon phase.<\/p>\n In 2022, it was celebrated on February 1 and falls on January 22 in 2023.<\/p>\n Many traditions associated with CNY<\/span><\/a>, each of which influences how Malaysians shop in preparation for the holiday.(2)<\/sup><\/span> As the countdown begins, homes are cleaned and decorated, debts are settled, offerings and prayers are made, new clothes are purchased, and plenty of food is prepared. Then, people come together for family gatherings, fireworks displays, street parades, and a whole week of celebrations.<\/p>\n In Southeast Asia, especially, it is the driving force for the largest human migration in the world<\/span><\/a>, with people travelling long distances to return home and be with loved ones.(3)<\/sup><\/span><\/p>\n For many Malaysians, CNY is a season filled with entertainment and an abundance of shopping bargains. Buying new items is traditionally seen as symbolising a brand-new start for the new year<\/span><\/a>, making CNY an important period for brands and retailers.(4)<\/sup><\/span><\/p>\n Consumer spending across a wide range of products and services is traditionally high compared to other periods during the year.<\/p>\n Before the pandemic, Malaysians spent about MYR8 billion annually on CNY<\/span><\/a>, with people spending predominantly on food, travel, and gift-giving.(5)<\/sup><\/span> <\/p>\n The government’s introduction of the Movement Control Order (MCO) in response to the COVID pandemic has affected Malaysian shopping behaviour during the Chinese New Year.<\/p>\n The MCO, which lasted from March 2020 to October 2021, forced Malaysians to go online to keep the festivities alive<\/span><\/a>.(6)<\/sup><\/span><\/p>\n Online shopping has already been on the rise in Malaysia. The Malaysian eCommerce market grew by 68% year on year<\/span><\/a> (PDF download) <\/em>in 2021,(7)<\/sup><\/span>\u00a0and the number of online shoppers in Malaysia increased by 47% year-on-year<\/span><\/a>, with 14.43 million buying consumer goods online at the start of 2022.(8)<\/sup><\/span><\/p>\n During CNY, consumers relied more heavily on social media, live-streaming, and YouTube than traditional advertising forms to inform their purchasing decisions. Malaysians stream music videos, catch up on the latest seasonal looks with beauty and makeup tutorials, learn food recipes, and watch Chinese zodiac and feng shui experts for tips to ensure a prosperous year ahead, according to Think with Google<\/span><\/a>.(9)<\/sup><\/span><\/p>\n Given the limitations of travel, which is traditionally a big part of the holiday, CNY gifts for parents and relatives were purchased online and delivered directly, rather than being hand-delivered. Pre-packed deliveries of yee sang – a traditional festive dish – and e-wallet ang pows (red wallets)<\/span><\/a> became popular.(10)<\/sup><\/span><\/p>\n This made online channels the all-important battlegrounds for brands to capture the attention of their audiences in the lead-up to CNY. As a result, many brands shifted their focus and budgets online and doubled down on social commerce.<\/p>\n COVID also created financial uncertainty, which encouraged Malaysian consumers to become price-sensitive.5<\/sup> For shopping platforms and brands, value deals were a popular marketing tool to entice consumers to spend.<\/p>\n In early 2022, the National Unity ministry approved new rules, which include allowing house visits and reunion dinners for CNY. Consumers started to adopt some of the in-person traditions that were banned in the previous two years, including gatherings with loved ones and visiting shopping malls.(11)<\/sup><\/span>\u00a0<\/sup><\/p>\n However, there was a significant drop in physical shopping visits when the media started reporting Omicron-related daily case numbers in January<\/span><\/a>,(12)<\/sup><\/span>\u00a0just ahead of CNY celebrations. Even though the Malaysian government didn’t announce any restrictions or additional rules, shoppers seemingly opted to refrain from visiting malls in person, causing a dip of at least 30-40% in footfall and sales<\/span><\/a> (PDF download)<\/em>.(13)<\/sup><\/span> <\/p>\n The pandemic has driven eCommerce platforms to think differently about how they market to audiences accustomed to in-store shopping experiences.<\/p>\n With eCommerce becoming the preferred method of shopping for many Malaysians<\/span><\/a>,(14)<\/sup><\/span>\u00a0shopping platforms, including Lazada and Shoppee, were offering huge discounts during the holiday<\/span><\/a>.(15)<\/sup><\/span>\u00a0Throughout the sale period, Shopee customers could enjoy up to 88% cashback daily using vouchers given out every day.<\/p>\n For example, in 2021, Shopee and Lazada rolled out CNY sales so customers could stay safe and shop from home.<\/p>\n On Lazada\u2019s \u201cKeep Calm and Shop from Home<\/span><\/a>\u201d page, the platform showcased special deals from well-known brands across groceries, daily necessities, toiletries, and pet supplies.(16)<\/sup><\/span>\u00a0The online shopping platform also partnered with food and grocery brands and restaurants, including Din Tai Fung, Eu Yan Sang, and Salad Atelier, to offer a wide variety of CNY-themed items, hampers, yea sang packages, abalone, and more.\u00a0<\/p>\n Livestream shopping sprees<\/span><\/a> are another key eCommerce trend in Malaysia<\/a>.(17)<\/sup><\/span>\u00a0During the height of the pandemic, when many shops were shut, brands needed to find new ways to engage shoppers.\u00a0<\/p>\n Live streaming became an effective method to attract consumers to the online shopping experience. And with online shopping still a staple in people’s lives, it’s still a popular marketing tool for merchants and shopping platforms with a new term, \u201cshoppertainment<\/span><\/a>\u201d.(18)<\/sup><\/span> <\/p>\n Exclusive brand discounts can be a way for affiliates to drum up excitement in shoppers and attract attention during the noisy shopping period.<\/p>\n A survey of CNY buying behaviours revealed that sales discounts were the most enticing trigger for more users to buy online. When asked what promotional offers would encourage them to purchase during the holiday season, 36% of Malaysian consumers said sales discounts<\/span><\/a>.(19)<\/sup><\/span> Another option is for affiliates to partner with different brands and curate surprise boxes made up of various related items.<\/p>\n Potential examples include a themed beauty box with different cosmetic and toiletry items or a gadget box with accessories and novelty items. In addition, pairing popular items with lesser-known items can introduce shoppers to new products.<\/p>\n <\/p>\n When it comes to shopping, consumers have chosen the convenience and safety of buying online, including using mobile devices (m-commerce).\u00a0<\/p>\n One survey revealed that 82% of APAC consumers made an online purchase during Chinese New Year in 2021.(19)<\/sup><\/span>\u00a0Indeed, the lead up to the holiday saw Malaysia’s top three online shopping platforms Shopee, Mudah.my and Lazada saw a spike in brand mentions on Twitter.\u00a0<\/p>\n At the same time, 67% of Malaysian consumers said they searched for products or brands for CNY shopping on their smartphones or tablets.\u00a0<\/p>\n As many as 82% of Malaysians use their mobile for online shopping research in the run up to CNY, according to an InMobi survey conducted<\/span><\/a> (PDF download)<\/em> in August-September 2020,\u00a0 while 69% use their mobile for festive purchases.(20)<\/sup><\/span> <\/p>\n Buying new clothes, believed to bring good luck, is part of the Lunar New Year tradition. This would explain why the new clothes segment was the top eCommerce product category for the festive season.<\/p>\n This is supported by InMobi’s survey, which revealed that 32% of Malaysians planned to buy fashion and apparel for CNY.\u00a0<\/p>\n As with many cultural holidays, CNY is a celebration of food. People prepare big meals for their family gatherings and gift treats and sweets to family and friends.<\/p>\n The InMobi survey revealed that 35% of Malaysians included food and beverages in their pre-festival shopping plans.<\/p>\n Based on the statistics from January 2021 that Shopee to Wisesight have shared<\/span><\/a>, among the top searched products on their platform were 100 Plus, an energy drink, bird’s nest, abalone, and bak kwa (dried meat).(21)<\/sup><\/span>\u00a0These items are expected to experience a yearly spike in searches when CNY celebrations approach.<\/p>\n According to Google Trends, search interest for “CNY cookies<\/span><\/a>” spiked in January 2022,(22)<\/sup><\/span>\u00a0along with “pineapple tart recipe<\/span><\/a>“.(23)<\/sup><\/span>\u00a0Serving sweet desserts is encouraged during CNY because it symbolises bringing sweetness into the new year. Pineapple is also seen as auspicious and pineapple tarts are a popular festive snack<\/span><\/a>.(24)<\/sup><\/span><\/p>\n Alcohol is also a popular gift item for adults, with sweets being popular for children.\u00a0<\/p>\n According to the InMobi survey, 17% of Malaysians planned to buy groceries for the house for Chinese New Year. This includes cleaning products as people prepare their homes for guests over the holiday season.<\/p>\n Decorations are a very significant part of the CNY festival. Homes, businesses and streets are decorated in red (to symbolise good luck) with lanterns. Decorating the house with flowers and fruits is also considered lucky.<\/p>\n These items see a spike in retail demand. This creates an opportunity for brands to become creative with decorations to encourage sales, like the two realistic Lego sets that are meant to be “plant centre pieces<\/span><\/a>” for home decoration.(25)<\/sup><\/span><\/p>\n<\/div>\n There’s lots of overlap between Western and Chinese tastes for gifts, with toys popular for children. Some brands release limited edition toys during CNY to increase sales. For example, Lego unveiled Chinese New Year-themed sets<\/span><\/a> in Malaysia in 2021 that were inspired by Chinese legends.(26)<\/sup><\/span> With interstate travel expected to rise in the coming years, spending on CNY-related travel will likely surge again.<\/p>\n For the first quarter of 2022, Malaysia’s retail industry recorded a growth rate of 18.3%<\/span><\/a> in sales compared with the same period in 2021, which has been attributed to the reopening of retail and the CNY festival.(27)<\/sup><\/span><\/p>\n However, the opportunity for online brands will not be lost. With online shopping now a mainstay in Malaysian life, people will continue to go online to research and buy products and services.\u00a0<\/p>\n Experts are predicting growth in the field of Malaysian eCommerce over the next few years.\u00a0<\/p>\nWhat is Chinese New Year and How Does It Affect Shopping Habits?<\/strong><\/h2>\n
COVID\u2019s Effect on Malaysia\u2019s Chinese New Year Shopping<\/strong><\/h2>\n
eCommerce Shopping Trends During Chinese New Year in Malaysia<\/strong><\/h2>\n
Promotional Opportunities<\/strong><\/h2>\n
Brand Discounts<\/strong><\/h3>\n
Surprise Boxes<\/strong><\/h3>\n
eCommerce Statistics for Chinese New Year in Malaysia\u00a0<\/strong><\/h2>\n
5 Most Trending Products Categories During Chinese New Year Sale in Malaysia<\/strong><\/h2>\n
1. Fashion\u00a0<\/strong><\/h3>\n
2. Food and beverages<\/strong><\/h3>\n
3. Groceries<\/strong><\/h3>\n
4. Decorations<\/strong><\/span><\/h3>\n