It’s a savvy bit of creativity by the luxury watch maker. By highlighting the fine detailing in Rolex’s watch components, the advert emphasises the precision, care and artistry that go into its making. But the symbolism is two-fold… 

In Chinese custom, mooncakes are not only a special dessert, but significant gifts exchanged among family, friends and colleagues during the festive season. Rolex’s campaign subtly positions its watches as meaningful gifts for Mid-Autumn Festival: Just as mooncakes are given to express appreciation and best wishes, a finely made Rolex can function as a lasting token of love, respect, and all that good stuff. 

Mainland China and Hong Kong are major markets for Rolex and have been since the 90s. In 2020, China breezed past both Hong Kong and the United States to become the largest export market for Swiss watches. Rolex became incredibly popular during this boom in the luxury market, cementing its image as the ultimate status symbol among Chinese consumers. In 2022 Rolex was crowned the most desirable luxury watch brand in China by Morgan Stanley analysis.

So. Smart marketing? Well maybe. In Mandarin and Cantonese, the phrase for ‘to give a clock’ (sòng zhōng, 送钟) sounds identical to ‘attending a funeral’ or ‘bidding the end’ (sòng zhōng, 送终). Because of this homophone, giving a clock or watch can be associated with death, the end of life or a wish of misfortune. Rolex’s brand image is probably more than strong enough to outweigh superstition. If not, they better pray anyone bearing grudges this Mid-Autumn Festival also has money to burn.  

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The figure quickly blew up Weibo, sparking criticism about extravagance and waste, and form over function. Pangdonglai has since released an official statement clarifying the figure, which turned out to be less than half the rumoured number at RMB 4.14 million (about US$ 581,500).  

While still not a small expenditure for design costs, Pangdonglai’s statement stressed that it wasn’t any old designer they’d hired. Instead, they’d gone all in to get Alan Chan (陳幼堅) – one of China’s most celebrated designers.  

You might recognise his work. His portfolio includes the beautiful flowing logo for Chinese Coca Cola (可口可乐), the iconic Lee Kum Kee label, Hong Kong airport’s signage and visual identity, and that’s just the big ticket items. On top of iconic design, Chan is known for helping brands tell stories through strong visual identity. Despite international acclaim and a use of western aesthetic, he emphasises highlighting Chinese identity on its own terms, making him well placed to work on packaging mooncakes.  

Nonetheless, the clarification has not silenced criticism. Many netizens remain sceptical, questioning whether such costs are justified for packaging that is just chucked aside after the holiday. Others, however, defended the company, suggesting that premium design is part of luxury branding and can enhance the consumer experience. 

Behind the Pangdonglai mooncake controversy are larger conversations happening in China over the past few years on waste and excessive packaging, and the price of mooncakes. In 2021 the Chinese government issued a national standard called Requirements for Restricting Excessive Packaging of Commodities, aimed at tackling the problem. 

It wasn’t just a green issue. Chinese consumers have been genuinely concerned about the price of needless excessive packaging being passed on to the consumer. There were even worries that the giving of expensively packaged gifts could be an opportunity for corruption.   

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The hashtag “Mooncakes aren’t selling anymore?” trended on Weibo (China’s Twitter equivalent) with 43.45 million views on the first day of Mid-Autumn Festival (29 September). Typically, the peak time for sales occurs one month before the festival itself, which roughly falls within the first two weeks of August. However, one e-commerce platform year saw a steep decline of 43% in mooncake sales during early to mid-August, plummeting from 160,000 units purchased last year to 91,000 units. Concurrently, mooncake sales revenue has decreased from 12 million RMB (approximately 1.65 million USD) to 5.5 million RMB (around 750,000 million USD).

Reports suggest that pragmatism has become the keyword of this year’s market, even for annual must-haves like mooncakes. From taste, to packaging, to pricing, Chinese consumers have evidently become more cool-headed and traditional in their shopping choices.

An online survey involving around 38,000 Chinese netizens shed light on possible reasons for this absence of enthusiasm. The waning festive atmosphere, the unappetising flavour due to excessive sweetness, coupled with an abundance of daily food choices, has all contributed to the “mooncake off-year”. Among these reasons, health concerns also stand out for individual consumers – mooncakes, while delicious, are known for high levels of sugar, oil and fat. A Weibo user humorously remarked: “People who enjoy mooncakes are from the older generations born in the 1960s/70s/80s, and they are dealing with diabetes!”

Fruits and seafood have become popular alternative gift options for this year’s Mid-Autumn Festival in response to the increasing emphasis on health among Chinese consumers. What is dawning in China’s market, heralded by this consumption trend, is the following slogan: Health matters, even during the Mid-Autumn Festival.

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While a more sensible consumer sentiment amid the nation’s stagnant economic growth, coupled with toned-down marketing efforts in line with the “common prosperity” policy are partly to blame, the festive pastry still gains traction with its reimagining casting a light on mental health. The consumer sensation indicates that establishing inner resonance could be a more effective marketing approach to winning over China’s young people.   

The sought after mooncake

Known as “mental health mooncakes” (“精神饼” jīng shén bǐng), the sweet treat is a creation by Shanghai Mental Health Centre (SMHC) which is situated at South Wan Ping Road No.600. Initiated in 2021, it is an exclusive offering for its staff members and purchases are not available to the general public.

The naming of the dessert is a skilful adaptation of the term “mental health” in Chinese, which is “精神病” jīng shén bìng, playing on the nuanced difference in the tones of “病” (bìng; illness) and “饼” (bǐng; pancake) while shrewdly associating the topic of mental health with a lucrative special occasion.

The wordplay is supplemented with a series of visual endeavours, including a pattern where a human brain is accompanied by the hospital’s logo at the centre, giving a nod to its advocacy in mental health. The effort is enhanced with a thoughtful curation of six flavours, which is designed to deliver six messages, addressing psychological needs including how to deal with depression, behavioural addiction, interpersonal relationships, how anxiety becomes a drive for people to explore the unknown, and how to navigate the process of growing up, as well as how to tackle a mid-life crisis.   

As such the attentive product became an instant hit in 2021. While being sought after by its medical employees, the “mental health mooncakes” also caused a stir amongst the public with showy pictures soon circulating the internet, drawing in many to seek channels for purchase.

The public enthusiasm is reported to have resulted in the price of this exclusive mooncake being hyped to over a thousand Yuan from the original 78 RMB (10.87 USD) per set. With resales and daigou (a practice where someone with more resources purchases goods for others while making a profit from the price difference in return) emerging, it prompted the hospital to take action in limiting purchases of the mooncakes by staff.

The re-introduction of the sweet once again quickly gained steam upon its release, with the colourway tapping into the ongoing “Dopamine” trend (a practice leveraging bright colours to produce a sense of happiness, which is particularly popular amongst China’s younger generations). As a result, it propelled the hashtag “Mooncakes by South Wan Ping Road No.600 is fresh out of the oven” to garner nearly 2.5 million views on China’s microblogging mecca Weibo as of 30 September.

A “healing” mooncake

While eager buyers were expressing their disappointment that such mooncakes were not on offer to the public, others jokingly asked if they could buy one if they became a patient of the hospital. Describing the product as “healing”, netizens were impressed by the “mindful packaging”, saying it allows them to “treat their symptoms with the appropriate mooncake”, suggesting the dessert speaks to their psychological needs while also providing solutions to some of their mental health struggles. As a result, the creation resonates with the generation from the inside.

Meanwhile, the online buzz around the “mental health mooncakes” also shows that mental health issues have become more paramount amongst young Chinese as well as reflecting a generation more open about the once taboo subject, and their growing awareness to look after their emotional well-being.

The momentum provides implications for businesses who wish to capitalise on the mental health cause and capture the young generation of consumers. By allowing their offerings to voice the thoughts and feelings of their target audience, businesses are more likely to increase their appeal and to win over the demographics who are actively seeking to heal their mental health hardships. The “mental health mooncakes” serve as an example of such a therapy.

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The brand’s innovative gift box design is an ode to the festival, merging both tradition and modernity, encouraging consumers to embrace the season and freely express themselves.

Inside, consumers will find a pair of ceramic moon cups, complemented by contemporary stainless steel whiskey stones and ice tongs. This union of the time-honoured ceramic craft with avant-garde stainless steel elements showcases a novel fusion of softness and simplicity, warmth and modernity.

Additionally, moody’s new release includes a special edition of their HUSH HUSH lens series. “HUSH”, emblematic of silence and calm, represents the brand’s philosophy against labelling and external judgment. This series champions individuality, launching two fresh designs named “Floating Dust” and “Gracefully”.

According to the China Contact Lenses Market Overview, China’s contact lens sector is projected to witness a compound annual growth rate (CAGR) of 3.5% from 2023 to 2030. Moreover, with a surge in the adoption of disposable contact lenses in China’s tier-one and tier-two cities, brands are intensifying promotional efforts to encourage a shift from frequent replacement lenses to daily disposables. However, as online eyewear retailers enhance consumer education and assert the safety of their online offerings, the market share of contact lenses sold in optical shops faces potential challenges.

All in all, Moody’s latest product launch underscores the power of blending tradition with innovation, a strategy businesses can adopt to remain relevant and appeal to diverse consumer bases. In an era where consumers seek both authenticity and novelty, companies that master this balance, like Moody, stand to build stronger brand loyalty and tap into broader market segments.

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Powered by AntChain (a blockchain solution under Alibaba’s affiliation Ant Group who also operates Alipay), digital collectibles are accessible through brands’ mini-programs on Alipay. The in-app feature takes on the likeness of WeChat’s mini program. Also serving as a digital storefront where brands can offer products and services to users, this little tool has been growing in importance within marketing practices.

With Alipay being one of the most used online payment tools and houses over one billion users currently, its mini-program platform offers brands plenty of potentials. In fact, more merchants have woken up to the new instrument in recent years, with the platform seeing a total of 3 million mini-programs launched as of 2021 and a 133% year-on-year increase in daily active users in June 2022.

Six brands dipped their toe in the online space, unveiling moon-themed digital collectibles that can also be used as users’ payment code skins on the platform, adding collection value to the digital artwork. Included was global luxury label Burberry, China’s leading household appliance brand Haier, beauty brand MAOGEPING, fashion brand Peacebird, jewellery brand Liaomiao Gold, and food and beverage manufacturer Want Want.

Most of the digital collectibles launched by the six brands were snapped up very soon after release, as per Alipay. This is coupled with the additional bonus of increasing visits to participating brands’ Alipay mini-programs. According to MAOGEPING, the number of visits to its Alipay mini program during this marketing campaign (1-3 September) nearly doubled compared with a few days before (29-31 August). 

“This is the first time Laomiao Gold is trying a marketing campaign using digital collectibles,” Jia Xu, New Retail General Manager of Laomiao Gold told Dao Insights, “We achieved good brand exposure, with the number of user visits to our mini program increasing about 20% compared to that of daily operations prior to the campaign.”

As a long-term partner of Alipay, the Chinese jeweller also believes that the platform’s large user base and high-frequency usage will help them to expand their consumer base, reaching users of different age groups. Moreover, by leveraging digital collectibles at the crucial marketing event, Laomiao Gold also hopes to “change the old-fashioned image” that gold is often associated with, since China’s younger generations are starting to show a growing appetite for gold jewellery.

“The digital collectible we launched on the Alipay platform this time can not only be stored as digital artwork, but also as the skin of the users’ payment QR code and red envelope. It can also be given to a friend of the user. Due to its uniqueness, the digital artwork not only satisfies users’ needs, but also generates marketing for our brand.”

“For us, the value of brand marketing far exceeds that of transactions. We can differentiate the target audience from the general consumer and explore more digital collectible collaborations in the future,” Xu added.

Reflecting on this year’s Mid-Autumn Festival campaign, Ming Li, Head of Alipay’s digital solutions for the jewellery and luxury industry, said “As a leading digital open platform, Alipay has been providing tools and solutions for brands and merchants as they digitise their operations, including mini-programs, lifestyle accounts, and payment code marketing. Going forward, we are committed to continuously developing innovative solutions to support the evolving needs of our partners in the digital economy.”

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Several brands and restaurants have already hopped on the emerging trend. Ahead of the holidays on July 23, Häagen-Dazs and China Post Wenchuang jointly launched its first limited-edition “Mid-Autumn Festival”, a themed digital collection that was bundled with real cakes. In addition, a Guangzhou restaurant teamed up with Eleme and sold 10,000 copies of “China’s first Cantonese-style digital mooncake”.

On Weibo, Chinese netizens had mixed reactions to the virtual pastry. Some users mocked the idea of purchasing zero-calorie “air” cakes, while others considered it a worthy investment for the future. 

Given that the new regulations prohibit the sale of mooncakes over 500 RMB ($72), virtual mooncakes may be a way for luxury brands to still capitalise on the holiday market.

Contrary to physical mooncakes, virtual mooncakes currently do not have a cap as far as the price tag is concerned. Currently, digital mooncakes can cost up to 40,000 RMB ($5,775), a stark contrast to the low prices of 1 RMB ($0.14) last year.

Although the new market opens the door for a potential revival of premium mooncakes, experts warn about huge price fluctuations or fraudulent activity. It is also unclear how regulators will react to this shift to the metaverse, as it could be seen as an exploitation of a legal loophole.

Nevertheless, the arrival of the “metaverse mooncake” presents new opportunities for cross-border marketing and a fresh new way to appeal to China’s tech-savvy consumers.

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Falling on 10 September, the event also known as Moon Festival is the second most important occasion in China after Lunar New Year. As it is normally closely followed by Golden Week, which is the 7-day National Day holiday beginning from 1 October, it has been a crucial promotion season for brands with consumption enthusiasm rising amid increasing activities such as travelling and gathering with family and friends as well as demand for gifting. 

To leverage this special occasion, Sam’s Club introduced a different mooncake series, Member’s Mark. The product line features 9 new flavours that combine traditional Chinese ingredients such as Oolong tea and Osmanthus fragrans (a common plant in Autumn dishes) with Western twists from cheese to latte, satisfying the palate of savvy young Chinese consumers.

Meanwhile, these combinations cater not only to the need of following tradition but also to the pursuit of good health with reduced sugar content and additional nutrition from lactic acid bacteria, which is endorsed by these health-conscious demographics. Alongside these ordinary special offers, Sam’s also revealed a gift box series with premium ingredients such as wild mushrooms, scallop, and abalone adding a touch of luxury to the traditional festival sweets.

Consumers were further surprised by Sam’s latest decision of keeping the annual membership fee at the same level for its Chinese customers. This is despite a price increase of 10% in the US by Sam’s for the first time in nine years, as a result of inflation, according to the Walmart-owned warehouse club on 2 September.

In response to the change, a spokesperson at Sam’s Club China confirmed that the annual membership fee in the mainland market will remain at 260 RMB ($37.35) for basic membership and 680 RMB ($97.69) for Plus members, and there is no plan to increase the price in the region for the time being.  

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The Mid-Autumn-themed digital collectibles are a collaborative effort with Zhao Hong, a Chinese contemporary artist who specialises in crossover creation and digital paintings and found fame with posters he created for the then popular Chinese romantic comedy movie Myth of Love released in 2021.

The virtual collection includes five pieces with scenarios sketched out ranging from reunions with lovers and families and flying Kongming lanterns to children playing under the moon, all of which are traditions practised in the Chinese culture on this special day, therefore, resonating with the target audience.

In the meantime, GODIVA’s mooncakes dedicated to the festival have been skilfully incorporated into the artwork through the background colours of these digital paintings, and the small in-picture replicas of the desserts are a nod to the brand’s special offerings.

These virtual creations are accessible through the digital exhibition GODIVAVERSE, which has been built on an H5 page (an in-app web browser embedded in Tencent’s super messaging app WeChat that has become commonplace for brands to create digital campaigns), where a total of 200 pieces will be made available each day until 15 August.

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The idea of a camping case is in line with the increasing popularity of camping amongst Chinese young people. It consists of two parts – a reusable metal box and a foldable linen handbag that carries the box. They come in a perfect size for a casual camping trip, easy to take yet big enough for a couple. The design is also in the details – side pockets and a utility strap for attaching accessories around the handbag make the case extremely useful.

Another surprise of this Mid-Autumn gift comes as a vintage “oil” lamp inside the mooncake box. It is a chargeable electric lamp and can hold a charge for 8 to 72 hours. Although it is a replica oil lamp, it offers the experience of adjusting the light intensity, just like with a real one! The idea of the lamp is to serve as a reliable resource whilst camping and to prolong one’s exploration into the night. This lamp is also popular amongst sustainability advocates due to the fact that it needs no kerosene to light up.

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