With the Lunar New Year approaching, the Chinese mainland gift market is looking increasingly attractive to many consumers, despite overhanging worries over the direction of the economy.

Compared with a few years ago when cigarettes, wine and health care products were the most popular gifts on the Mainland, high-tech electronic gadgets have become the new favourites - in fact, the more high tech, the better the present.

According to sales staff for an electrical appliance shop in Beijing's West Third Ring, the sales peak falls between the end of the year and the Spring Festival, during which time consumers cram into the store for their digital and video cameras, cell phones, game consoles, MP3 players, electronic dictionaries and similar electronic devices.

Picking up an MP3 player, one sales executive explained that a high-end product with a handsome finish and appearance makes the perfect gift for the Mainland's so-called "Generation E".

Just as popular are audio-visual products and books. A salesman at Beijing Book Building said that hard-bound volumes priced at between Rmb300 and Rmb500 were top sellers.

"2009 Year of the Ox".

"Chinese elements" abound.

Electronic products represent a modern outlook and books stand for culture, while home items convey warmth and affection, according to gifting parlance.

Store owner Liu has an outlet in the Tianyi Small Commodities Wholesale Market in Beijing and sales started to take off before the arrival of Christmas, New Year and the Spring Festival.

Christmas decoration bonanza.

Liu's shop is full of decorative items for the Spring Festival, such as Chinese knots, paper-cuts and zodiac and horoscope decorations for the Year of the Ox. There are also cushions, pillows and place mats of different designs.

Liu has been in business for about three years and although times are more competitive now, he had been doing well because he chooses his inventory with care. He's been able to make between Rmb3,000 and Rmb4,000 per month even in a slow season.