HONG KONG, Feb. 24, 2015 /PRNewswire/ -- The latest survey results released by Prophet, a strategic brand and marketing consultancy, show that older and wealthier Chinese residents of Hong Kong are much more likely to purchase products and services from Chinese brands that engage in Chinese New Year (CNY) advertisements or promotions than from non-local or Western brands that do not heavily advertise in the run-up to the holiday.
Respondents firmly believed that CNY advertisements and campaigns were crucial for local brands to promote a positive brand perception to reach higher sales. The poll was carried out in February 2015, surveying 1,000 Hong Kong residents.
According to the Hong Kong Census and Statistics Department, the CNY months of January and February in 2014 saw retail sales jump 22% higher than average months. CNY has always been perceived as "Golden Week" for consumption, and brands tend to heighten their sales, marketing and promotion activities during this period to instill a more festive mood in consumers to capture their attention and money.
The poll results prove perceptions of the strategic importance of CNY promotions: 91% of respondents agreed that it is important for a Hong Kong or Chinese company to be active in advertising and promotion before CNY. Fully 81% of respondents found that products from a Hong Kong or Chinese company that engaged in advertising and promotion before CNY were more attractive.
Traditional Hong Kong brands such as Wellcome (retail), Maxim (catering), Chow Tai Fook (jewelry) are representative of heavy CNY advertisers. All flagship companies produced festive Year of the Goat advertisements in January or February 2015 that consumers recalled as best in class, whether promoted through traditional or social media channels.
The poll results also reflect that CNY advertisements have a positive influence on purchasing behavior. Some 82% of respondents said they would be more likely to buy from companies that engage in advertising and promotion before CNY. The same percentage cites the seasonal festive mood as a main reason to buy a product in a CNY advertisement or promotion.
The poll also revealed that 79% respondents think it is also important for non-local or western companies to be engaged in advertising and promotional activities around CNY. Established brands such as Coca-Cola and McDonald's have long been exponents of CNY advertisements or promotions in the Asia region. This February they were joined by Apple, which for the first time updated its China website with a new video advertisement in celebration of the Chinese New Year.
"We were curious about the effectiveness of Chinese New Year promotions, and this survey shows that it is very important for brands to participate. The brands that do it best think about how they can tell their own story through the lens of Chinese New Year. They need to do it in a relevant and differentiated way to cut through the noise of all the generic seasonal communications that appear at this time of year," said David Brabbins, Associate Partner of Prophet Hong Kong.
"The other interesting learning was that this is not just for local brands - it's important for Western brands in Asia to run CNY campaigns that show they are in tune with local sentiment," Brabbins added.
About Prophet
Prophet is a strategic brand and marketing consultancy that helps clients find a better way to grow. With 9 offices around the world, including Hong Kong, New York, San Francisco, Berlin, London and Zurich, Prophet brings together the right team to help clients meet their challenges. The firm brings multidisciplinary skills in brand, marketing, innovation, design, digital and analytics to deliver unique solutions and help clients including AIA, Cathay Airlines, Bank of East Asia, Samsung, BMW, Cisco, Electrolux, GE, HTC, Johnson & Johnson, McDonald's, Siemens, UBS and Zurich Financial strengthen their brands and grow their business.
Prophet's Asia Pacific headquarters in Hong Kong opened in 2010. Located in the St John's Building, Central, Prophet's Hong Kong office is home to a 20 strong team of strategists, designers and creative consultants who come from a diverse mix of consulting backgrounds, countries and cultures.
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