Lantern Festival Sparks Continued Buying Frenzy

On Saturday, the 15th day of the first lunar month of the Year of the Dragon, China celebrates its traditional Lantern Festival.

The nation’s consumption performance is expected to continue the buying frenzy observed throughout the Spring Festival vacations on the day that ends the two-week celebration of the Chinese New Year.

Positive Outlook for First Quarter Economic Data

The official data at the conclusion of the first quarter of 2024 will reflect the positive outcome. Experts remarked that the consumer vibrancy at the beginning of the year across sectors such as retail, tourism, and entertainment underscored the revival of the national economy.

Huo, a resident of Beijing, told the Global Times on Friday that she and her family had witnessed lengthy lines at shops to purchase yuanxiao, a popular celebratory glutinous rice ball, in honor of the Lantern Festival.

Yuanxiao Purchases Surge in Beijing

A Beijing resident going by the surname Li stated, “Some popular stores in Beijing sold out their daily inventory in just one morning due to the extremely high demand for yuanxiao around the festival,” adding that there were long lines of people waiting outside the store starting early in the morning.

Overwhelming Demand for Yuanxiao

According to a Beijing food store employee, yuanxiao sales have recently surpassed 10,000–15,000 kg per day.

Customers had to stand in line for forty minutes to purchase the highest quantity, which weighed forty thousand kilograms, according to Beijing Business Today, a local media outlet.

Lantern Festival Boosts Catering and Entertainment Industries

The Lantern Festival is a weekend event rather than a holiday, so the catering and entertainment industries anticipate a spike in business for get-togethers with loved ones, Zhang Yi, CEO of iiMedia Research Institute, told the Global Times on Friday.

Meituan Reports Surge in Yuanxiao-themed Menus

Meituan, an online retail platform, informed , there were 55% more restaurants introducing set menus with a yuanxiao theme than the previous week, and the volume of associated orders had climbed by more than 165%.

“The surging pre-order volume for restaurants, as well as the high customer volume at cinemas and shopping malls across the country, proves that national consumption is still running at a high level,” Zhang stated.

Record-breaking Spring Festival Holidays

China had record levels of domestic travel and spending during the eight-day Spring Festival holidays, both of which were significantly higher than during the same period in 2019 prior to the COVID-19 pandemic.

 

 

The Ministry of Culture and Tourism released data on February 18 showing that during the eight-day holiday, 474 million domestic trips were made, up 34.3 percent from the previous year, and total domestic tourism spending increased by 47.3 percent to approximately 632.69 billion yuan ($87.91 billion).

During the holidays, a number of transport hubs, such as the Xishuangbanna Railway Station in Yunnan Province, Southwest China, and the Hong Kong-Zhuhai-Macao Bridge, reported new records for daily passenger volume.

Exceptional Box Office Performance During Holidays

Box office tracker Dengta reports that throughout the vacation, China’s total box office set a record with 8.034 billion yuan.

Remarkably, the average cost of a movie ticket dropped from 52.3 yuan during the 2023 Spring Festival holidays to less than 50 yuan, suggesting that more people were prepared to spend money on pleasure.

Economic Projections Amidst Calendar Shift

Some year-over-year data may not be usable as a reference because the Spring Festival holidays in 2023 and 2024 fall in January and February, respectively, due to the lunar calendar.

Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Friday that China’s economic operations will be precisely projected in the first quarter of 2024, with growth based on the current momentum.

Positive Signals for Economic Growth in 2024

During a normal news conference on Thursday, He Yadong, the spokesperson for China’s Ministry of Commerce (MOFCOM), stated that the country saw a surge in consumption during the Spring Festival holidays, indicating a positive start to 2024.

The MOFCOM committed to putting together more events to encourage consumption and to carrying out all necessary steps to increase it.

“Consumption is set to contribute more to economic growth in the first quarter of 2024 thanks to a series of festivals, as we can see the consumer price is driven up by social consumption demand, and the CPI and PPI of the first quarter of 2024 will record upsurges,” Li stated.

 

Conclusion: Embracing Prosperity Through Tradition

As the lanterns fade after the vibrant celebrations of the Lantern Festival, China finds itself not only immersed in the glow of traditional festivities but also witnessing the economic vigor ignited during the Spring Festival holidays.

Culmination of Resilience and Collective Spirit

The Lantern Festival, marking the culmination of the Chinese New Year celebrations, served as a testament to the nation’s resilience and collective spirit.

Positive Economic Outlook for Q1 2024

The streets filled with dragon dances, the aroma of yuanxiao lingering in the air, and the surge in consumer activity all point to a positive outlook for China’s economic landscape in the first quarter of 2024.

The record-breaking domestic travel, booming box office figures, and increased spending on entertainment underscore a nation eager to embrace joy and shared experiences.

The yuanxiao frenzy, where stores sold out within hours, not only reflects the cultural significance of the Lantern Festival but also showcases the dynamic consumption patterns that continue to drive economic growth.

As families gathered for the weekend event, the catering and entertainment industries experienced a welcomed surge, emphasizing the deep-rooted connection between tradition and economic vitality.

Promising Trajectory Despite Calendar Shift

While year-over-year data may be influenced by the shift in the lunar calendar, the indicators of robust consumption during the festivals set a promising tone for the year ahead.

The commitment of the Ministry of Commerce to encourage more events and foster consumption further reinforces the positive trajectory.

Conclusion

In conclusion, as China bids farewell to the Lantern Festival, it does so with a sense of prosperity and optimism.

The lanterns may dim, but the glow of tradition, resilience, and economic vitality remains brightly illuminated, paving the way for a year filled with growth and shared moments of celebration.

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All around China, people celebrate the Lantern Festival