Opening The Door To China’s Advent Calendar Market

For those unfamiliar with the concept, Beijing-based Jacob Cooke, co-founder and CEO of e-commerce consultancy WPIC Marketing + Technologies, compares the advent calendar to China’s booming blind box trend. As with these, “customers don’t know exactly what products they’re getting. This is a popular retail format in China with part of the value coming from the surprise and exposure to new products,” he says. Indeed the blind box sector here is in fine health, forecast by the Mob Research Institute to be worth $4.6 billion (30 billion RMB) by 2024.

As Cooke maintains, it’s all about the value of products versus price paid. “There has to be value. Diptyque and the like, these are all around $500 (3,500 RMB),” says Torsten Stocker, COO at Thakral Corporation, a Greater China beauty brand distributor and retailer. “So, it’s not a pure impulse purchase. Even though it’s affordable, it’s still a considerable amount of money.” Stocker thinks the value comes from having products that “feel real” and are not merely “a collection of the smallest samples or slow sellers that you are trying to clear.” It has to contain objects that consumers need, want, and value.

The domestic market is, for now, dominated by low-level chocolate company offerings (such as Whale Talk), much like in the west. But given the mainland’s retail gamification and propensity for blind boxes, it won’t be long before C-beauty and lifestyle lines jump on the craze. Cooke confirms that it’s a smart strategy for local players looking to “build their credibility as global luxury brands.”

Another broader trend in China retail is the emphasis on customer loyalty. Cooke notes that as the country’s market has matured and become more competitive, brands have shifted their focus to “long-term customer value.” This is often achieved through membership programs that offer exclusive benefits. Special seasonal offers are no different.

He ends on the fact that even as the “guochao” trend continues to take hold, there’s still a “strong association between western labels and luxury — so it can pay dividends for Chinese names to put their own local spin on the advent calendar.” If so, the 2023 season will open a new window of opportunity for those homegrown brands willing to take the chance.