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China, Dubai get into the Christmas (shopping) spirit
Published on: Friday, December 19, 2014
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It's a typical holiday scene in the U.S.: a decked-out Christmas tree, twinkling lights and a line of shoppers waiting for Santa Claus. Except for one thing...it's Shanghai. Christmas retail displays are becoming increasingly common in China and other parts of the world that don't traditionally observe the holiday. Global brands and local merchants are promoting the yuletide season with sales, tinsel and events, aiming to get shoppers in Asia and the Middle East to catch the Christmas spirit - and open their wallets."When I was growing up, all I knew about Christmas was Santa Claus and that it was a Western festival," said Crystal Zhao, 23, a Shanghai resident. That's changed, she said.

Though China is still mostly atheist and doesn't formally recognize the holiday, Zhao and her friends get together to check out the decorations in malls and exchange small gifts.

While the trend has been gaining steam for years - building on longstanding Christmas traditions in Japan and other non-Christian countries - marketers are accelerating efforts this holiday season. Macy's Inc. (M), Aeropostale Inc. (ARO) and Saks Fifth Avenue are working with e-commerce companies Borderfree and Alipay to offer Christmas specials directly to Chinese consumers for the first time.

In the United Arab Emirates, the large expat population and an influx of Russian tourists have helped drive the trend in the predominantly Muslim nation, said Debra Kaye, a retail and consumer consultant at Lucule Consulting in New York.

Dubai Christmas Fest, a three-day extravaganza featuring shopping, caroling and an ice show, started in 2012 and has been growing in size each year, according to Chris Fountain, managing director of Turret Media, the event's organizer.

New this year: a mechanical "rodeo reindeer" and a station for making snow globes and tree decorations. They're joined by returning features such as Santa's Grotto and a snowball-fight zone, all under a giant Christmas tree and hourly snowfalls.

An adult ticket bought cost 55 dirhams, or about $15. A record 30,975 people visited the event, up 14 per cent from last year. Dubai residents also can buy Christmas trees, shop for gifts at Christmas markets and order traditional Christmas dinner. The festivities represent a major shift from a decade ago, said Jeanette Bennett, an assistant vice president for retail leasing at Douglas Bennett Property. She spent 10 years leasing space at malls in Dubai.

"When we first arrived, Christmas was barely mentioned," Bennett said. "This year especially, it is everywhere."

Christmas caught on in Japan after World War II during the American occupation. Even though the country's Christian population is tiny, many Japanese celebrate aspects of the holiday, including decorating, exchanging gifts and eating Christmas cakes - a spongecake-whipped cream confection with strawberries. Christmas Eve is celebrated as a romantic time, with couples dining out or visiting hotels.

In China, Western retailers such as Tesco Plc (TSCO) and Carrefour SA (CA) are dialing up their Christmas promotions, said Adam Levin, chief executive officer of Levin Consulting, a Beachwood, Ohio-based firm that advises manufacturers and retail chains on overseas tactics. "Retailers are smart," he said. "If something works in one country, let's try it in another."

Also contributing to the holiday's ascent in China is the growth of Singles Day, a Nov. 11 holiday. It emphasizes self-gifting, along with the cachet of all things Western, said Ann Lee, author of "What the U.S. Can Learn from China" and a consultant on U.S.-China relations.

Younger people also are shopping differently now, Lee said. They're making more frequent and modest purchases instead of saving up for one large status item like a designer handbag. That lends itself well to a growing tradition of giving Christmas gifts, she said.

Zhao, the Shanghai resident, plans to buy her parents presents this year, even though they don't observe the holiday. The approach is different from Chinese New Year, when people exchange red packets of cash instead of gifts, she said.

"Chinese people like festivals very much," said Kent Wong, managing director at Chow Tai Fook Jewelry Group (1929), which operates more than 2,000 outlets in China. "We like a reason to spend money." Chow Tai Fook, the world's largest listed jeweler, is running promotions this Christmas, such as offering shoppers rebate coupons and throwing a big sale in Hong Kong.

Two Shanghai malls owned by Hong Kong-based Kerry Properties Ltd. (683) also have expanded their holiday offerings after testing a Christmas marketplace at one center last year.

This year, Kerry opened Christmas bazaars at two centers featuring log-cabin-style stalls and weekend activities. Shoppers can learn how to bake their own gingerbread people and decorate ornaments and wreaths during the monthlong event.

On Christmas Eve and Christmas Day, the centers will have a live choir and band to entertain shoppers.

"Most shopping malls in China are in a slowdown from a retail standpoint, as online shopping is so big right now," said Hin Lui, creative services and production manager at Kerry Parkside in Shanghai. "There is a big push for retail malls to innovate, and how to bring people in to spend money is to create an experience for them."

Retailers are eager to stretch out the Chinese holiday season with Singles Day on one end and Lunar New Year on the other, said Tom Gaffney, head of retail at Jones Lang LaSalle (JLL) in Hong Kong.





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