NEW year, new red packets.
As much as e-gifting has gained popularity due to convenience and the move towards a more environmentally friendly way of handing out money, the giving and receiving of physical red packets during Chinese New Year remains an enduring practice.
Over the years, printers say there has definitely been a gradual reduction in the number of red packets that corporates print to give to their clients. However, this has been replaced with higher-quality versions. These red envelopes into which crisp new notes are stuffed can cost anywhere from a few cents to a few dollars per piece, depending on order volume, quality and urgency.
“The feedback is quite clear, people on the ground still prefer to follow tradition and use physical red packets,” says Michael Lim, co-founder of printing company Craftwerkz. “What we see is a decrease in quantity, but an increase in quality.”
This means the intricacy of red packet designs has intensified over the years, with customers chasing more complicated, bolder designs, better-quality paper, fancy packaging and so forth.
Mine’s better than yours
Indeed, Jasper Kan, sales and marketing manager at corporate gifting company Olympia Premiums, says companies are competing to see who can produce nicer and more functional red packets that give a “wow” factor.
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Even as bigger clients are reducing red packet orders by about 5 to 10 per cent yearly, Olympia is hiring more designers – including from China, Hong Kong, Taiwan and Malaysia – to create a wider variety of ever more outstanding designs. The company is also using artificial intelligence to help generate more realistic images.
“We have to be innovative and come up with very interesting concepts and nice colours so they look more like art,” explains Kan, adding that red packets can be highly customised.
Options go beyond the basic hot stamping and spot UV for added shine to die cutting, embroidery, three-dimensional pop-ups, embossing and flocking to create a velvety feel. There are also different paper finishes that offer a variety of textures, from matte and glossy to silk, velvet and suede.
At corporate gifts supplier Vivopress, work on next year’s red packet designs will start by March, says its director, Tan Zhao Rong. This is so it will have enough lead time to develop new and captivating concepts to offer clients, who start making enquiries in June or July – if not earlier.
“The process is a lot more tedious than you think, and we must have enough design options,” says Tan. “For something extra creative, we have to go through the R&D process and fine-tune various elements to make sure that the outcome is good.”
In trying to address environmental concerns, printers are striving to apply more sustainable materials such as recycled paper and organic ink. But those using 100 per cent recycled materials sometimes find the final product “too raw”, with colours that look washed out, says Kan.
To make the red packets also usable on other occasions, printers avoid using animals from the Chinese zodiac in the design, so that the red packets can still be used on other occasions.
What’s in vogue
Colours other than red are gaining acceptance, including non-traditional hues such as turquoise, indigo, neons and blues – even though they may not be favoured by the older generation.
Kan says black hongbaos – a radical choice – have also been explored, although the market “might not be able to accept it at this point in time”.
After all, it was almost unthinkable to use any colour other than red when Craftwerkz first started printing red packets over 15 years ago, says Lim.
When it comes to design, there is a preference to blend tradition with contemporary aesthetics. “This means the red packet has to look modern, but still carry Chinese New Year elements and symbolism,” says Tan.
This year, she also noticed that an increasing number of clients are looking for more textures, such as embossing and flocking, to produce a tactile experience when holding the red packets.
Clients also want variety, and are choosing to print different designs in a set of hongbao.
Beyond the lucky envelopes, there is growing demand for high-end packaging. These can be reused for other purposes and also makes the gifting experience more interesting, says Tan.
So instead of plastic wrappers or a paper band, red packets are now arriving in premium zip pouches, exquisite gift boxes and customised wallets that can be turned into elegant trays. These types of packaging can cost anything from S$5 to S$12 each.
Even individuals are getting into the act of custom-making their own red packets, though these will cost more per piece since they lack economies of scale.
Having seen rising demand from people who want to stand out with personalised and exclusive red packets, Kan moved into this segment this year.
This trend, says Tan, reflects a growing inclination for personal expression. “It makes for meaningful gifting and people want to build their own personal brand.”
But while individuals are gravitating towards paying for custom-made red packets, it starts from a very low base, since it is only done by those who can afford it, says Lim. Each piece can cost up to a few dollars.
An enduring tradition
Will the giving away of physical red packets disappear in time to come?
The printers think not.
“I have three kids and I think it’s still a good practice to give them physical red packets,” says Kan. “They come together to open the envelopes and count the cash. But when hongbao is digital, the experience becomes very vague and feels different.”
Tan, who says people look forward to new designs every year, agrees.
“Many still appreciate the tangible and symbolic value of giving red packets. It signifies blessings and good wishes, so it’s more than just monetary value. It’s a personal touch.”
Meanwhile, Lim likens the situation to that of greeting cards, which suffered the biggest impact from digitalisation and have largely turned electronic.
“Whatever physical greeting cards that remain are very high-end ones,” he says. “So, I think red packets will follow a similar pattern – they will continue to decrease in volume, but those that still give them out, such as private banks, will try to outdo each other in quality.”
