Opportunities & trends in the Year of the Dragon

If the enormous dragon sculptures dotting Chinese cities aren’t too much of a giveaway, we are close to the Year of the Dragon. Saturday marks the coming of China’s most auspicious zodiac year, one of power, luck and health. It is also associated with good fortune, wisdom, success and compassion, with this year’s Wood Dragon adding creativity and growth to the mix.

Brands have been particularly devoted to associate themselves with the positive traits of the dragon. The mythical beast is showing up everywhere there is advertising in China; all over screens in elevators, on the massive LEDs on buildings, and in apps on smartphones. Here are three brands we think integrate traditional culture with modern aesthetics really well in their ads and campaigns.

This Chinese New Year/Spring Festival is the first in four years that hasn’t been disrupted by Covid. Despite the harsh winter conditions lashing China, the ‘world’s largest annual human migration’ this year is expected to see a record 9 billion passenger trips during the 40-day travel peak.  International travel is reportedly back to pre-Covid levels, with 1.8 million trips made in and out of the mainland each day.

Something interesting to watch will be China’s birth rates. 9.02 million babies were born in China last year, down from 9.56 million in 2022 and the seventh consecutive year the number has fallen. Beijing and local governments who have long urged would-be parents to start a family, will be watching to see if the allure of the Dragon Year will be enough to drive a bump in numbers. People born in the Year of the Dragon are believed to be ambitious, passionate, and confident. The last dragon year in 2012 saw birth rates grow to 14.6 births per 1,000 people, versus 11.9 two years earlier.

It’s common for Chinese to buy their zodiac year paraphernalia. With historic spikes in dragon babies meaning that there are more dragon folk than other zodiacs, we will likely see strong sales of brands who’ve emblazoned their kit with dragons, particularly in the luxury category.

Whilst Chinese New Year traditions like paper lanterns and mandarin oranges are steeped in tradition, some traditions are giving way to convenience this year. Building on a trend we saw during the festival last year, more consumers are opting for fast food and ready to cook varieties than ever to see in the New Year. Another trend is ever-more innovative CNY gift boxes, not just for humans, but also for their beloved pets!

Whether you’re in China, or in another country; whether you’re feasting on traditional fare or fast food; we wish you an auspicious Year of the Dragon. Why not do the Dada dance to celebrate? As always, China Skinny is available to help refine and optimise your China strategy, branding, digital and research to ensure the year ahead is auspicious for your brand. If you’re born in the Year of the Dragon, don’t forget to wear something red! Our newsletter will be back on 21 February after the holiday.