Festive spending in China: will Covid-19 spoil this Christmas shopping season?
- Businesses across the country hoped to celebrate the first holiday in years without onerous Covid-19 restrictions in place
- A burst of infections is putting a damper on festivities, but entrepreneurs are displaying flexibility as they try to make the most of the season
Business owners in China are looking to spread some Christmas cheer as the country experiences the first holiday in years without onerous Covid-19 restrictions in place, but a burst of infections is putting a damper on festivities.
From flash sales to themed events, businesses in sectors across the country are striving to help citizens share the joy of the season, whether they choose to celebrate at home or in public, after Beijing scrapped all testing requirements abruptly and called on businesses to resume normal operations this week.
Restaurants and bars are advertising special Christmas menus for couples and big families, touting scrumptious steaks and seafood and fine wine to lure customers back, offering holiday discounts after sales slumped during the darker days of the pandemic. An Argentinian steakhouse in Beijing, for example, offers 32 per cent off wine this weekend, while a Shanghai eatery runs a 20 per cent discount until January 3.
“Surging infections across the city are preventing people from dining out,” said Zhu Zhengrong, the owner of the restaurant in Shanghai. “It is the worst time to run a catering business, but we still expect some young consumers will dine out to celebrate Christmas.”
In China’s tech hub, Shenzhen, brunch restaurant Auvers in Futian district has decorated its facade with 50 Christmas trees to tout its holiday specials.
A receptionist surnamed Guo said the restaurant used to be full every night and especially on weekends, but it’s almost empty these days. “It is hard to predict what it will be like this Christmas, he said. “Almost half of the restaurant staff has been sick at home.”
The sense of uncertainty also lingers in Beijing. An Italian restaurant in Liangmaqao, a commercial hub close to the embassy area, said it has fewer reservations for this Christmas than last year. Other establishments reported that only half their available bookings have been filled.
The easing of the virus-prevention measures paves the way for the world’s second-biggest economy to exit the zero-Covid strategy, which disrupted manufacturing and commercial activities.
But the downside to reopening is a flare-up in new infections.
Soaring case counts in the coming two or three months will be detrimental to thousands of small businesses since they may run out of cash and confidence, said Chen Xiao, CEO of Shanghai Yacheng Culture, a firm that deals with marketing and branding for retail companies.
But if restaurant owners have learned anything during the pandemic, it is agility. They have come up with new ideas to cater to those who wish to have a cosy Covid-19-free Christmas at home instead.
Those choosing to stay at home can have turkey and ham delivered to their door, but that is just the beginning. Gift boxes of fresh-baked biscuits, coffee sets, kits to make mulled wine and even advent calendars containing daily nibbles have been available via delivery.
While delivery is a lifeline for small businesses that want to participate in the holiday spending spree, it is not always easy since many delivery workers have been calling in sick, causing a backlog across the country.
Aica Pen, owner of bakery Mary Sweets, which has Shanghai and Guangzhou stores, said her business has been greatly impacted by the recent spike in Covid-19 cases.
“We deliver nationwide and when we dispatch our parcels, they do not reach our customers due to restrictions,” she said. To save her business, she regularly posts on social media offering bundles and flash sales.
Wang Xu, a Christmas tree seller in Beijing, sometimes has to deliver the trees himself. His sales this year have dropped by half due to the recent outbreak, he said.
“While some customers drive over here to pick a tree, most of them choose a tree through the photos I send them,” he said, adding this saves customers a ride to his farm and therefore boosts sales.
Despite fewer diners and shoppers choosing to venture out, big cities around China will be celebrating Christmas with live music.
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After a long period of closure, music venues and clubs are opening their doors again, hosting concerts – be it rock, techno, punk or jazz – this weekend for those determined to go out and celebrate their first holiday season after three years as pandemic shut-ins.
In Shenzhen, a club promoter surnamed Chen said more than 200 people have registered for an electronic dance music festival to be hosted on Christmas Day at Luohu district’s Arena club.
“We’re not sure how many people will actually come, but since there’s no Covid-19 restrictions and the booking rate is not bad, we have no plan for cancelling,” he said.
MAO Livehouse in Beijing, which is hosting three concerts from Friday to Sunday, is also unsure how big of a crowd it will end up drawing.
“Everything is uncertain now,” said Gong Chan, a manager. “There are people cancelling their tickets every day because they catch Covid-19. We can only find out how many will show up when the time comes.”
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Even without the surge in infections, it remains to be seen whether a large boost in spending is actually imminent.
“We are not in the mood for ‘revenge’,” said Arthur Chan, a finance worker in Shanghai who is in his early twenties. “My income will definitely be affected as the latest round of pandemic is set to eat into our company’s sales.”
