China’s Internet companies invest billions in virtual red packets for Lunar New Year as they vie for more traffic

The traditional practice of giving out cash in red paper envelopes – considered an auspicious colour for the Chinese – has increasingly moved online with the ease of smartphone-based mobile payments. Many companies in China routinely hold red packet promotions, giving out cash or rebates that consumers can “snatch” through mobile apps. — SCMP

Chinese tech companies are planning to spend billions of yuan in virtual red packets for the upcoming Lunar New Year as they seek to grab a bigger share of Internet traffic over the national holiday.

Short video app Douyin, owned by Beijing-based Bytedance, kicked off its red packet campaign on Jan 14 with users able to share in 2bil yuan (RM1.18bil) worth of cash handouts, while search engine giant Baidu launched its campaign on Wednesday with 500mil yuan (RM295.49mil) of handouts for the holiday.