Technology

Electronic lucky money battle in China


Similar to traditional red envelopes, “virtual” envelopes also come in various shapes and sizes to attract consumers.

Lucky money is a tradition of people on the occasion of the Lunar New Year, meaning to wish everyone a good and lucky new year. In China, with the appearance of the electronic lucky money feature on WeChat, people can send out virtual envelopes, which is especially useful for those who cannot meet face-to-face during the New Year holidays. It is also an innovative way for luxury brands to tailor their campaigns to local customers.

Red envelopes of some luxury brands in China. (Photo: Weibo)

Its convenience leads to more and more people sending each other electronic lucky money. However, the simple, rustic red envelopes no longer satisfy the “gods”. They look for eye-catching, vibrant, unique designs similar to physical envelopes.

In 2019, WeChat officially introduced envelope customization for business users, allowing companies to provide WeChat’s 1.2 billion users with more sophisticated, sleeker envelopes. In 2020, Gucci tested the feature and launched a limited edition Mickey Mouse envelope on the occasion of the Year of the Rat. In 2021, many other luxury brands have followed in Gucci’s footsteps.

This year, many brands enhance this function of WeChat. In addition to festive decorations, design company Maisons adds entertainment features to the electronic envelope. For example, Hermes allows users to customize envelopes with fun animations and sounds. Jewelry company Van Cleef & Arpels again created GIF images to download and embed in envelopes. Saint Laurent again requires users to play simple interactive games to open lucky money.

Online platforms collect 1 yuan ($0.16, more than 3,000 VND) for each special envelope sold. So if 1 million users download it, the brand only costs about 160,000 USD. According to Olivia Plotnick, founder of Wai Social, red envelopes are a relatively inexpensive way to create effects. Besides, the initiative shows that the brand is more attached to local traditions, a strategy that hits the psychology of consumers.

Today, some luxury brands go a step further. Versace, Louis Vuitton, Fendi… upgrade their marketing strategy by collecting data when only providing a certain amount of envelopes per day and asking users for information or taking surveys to receive. According to Danni Liu, this is a good customer relationship management strategy, whether applied to VIPs or new customers. However, if these envelopes are bought and sold again and again, the brand won’t get any useful data.

Du Lam (According to Jingdaily)

Good and meaningful 2022 Lunar New Year wishes for parents

Good and meaningful 2022 Lunar New Year wishes for parents

Another spring has come, let’s together send our parents meaningful New Year wishes to express our gratitude.

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