Welcome, Dragon: Business angles to the Lunar New Year

Next week marks the exit of one Lunar New Year and the beginning of another — and the change of calendar might have more business and financial story possibilities than you think.

The Year of the Dragon is approaching. Credit: USA Today

Also known as Chinese New Year, the transition — based on a millenia-old tradition and reportedly the most important festival in the Chinese calendar — takes place on January 23 this year.  Celebrations, however, can span two weeks. 

The event is widely celebrated in a number of Asian countries, where it has significant effect on production and other facets of the economy.

Amazingly, for example, analysts credited a hike in gold prices last week to demand generated by the Lunar New Year, when people present one another with gifts of the precious metal, according to MarketWatch.  Airlines have scheduled to provide extra seats for people returning home to spend the holiday with family and friends; Malaysia Airlines, for example, has added 32 extra flights for the period before and after the New Year to accomodate demand.  And according to India Today, Chinese airlines have been asked to schedule a mind-boggling 14,000 (yes, 14,000) additonal flights during the “Spring Festival” as the new year is called. 

With so much holiday-related domestic travel in China, one wonders what the effect is on American firms doing business abroad, whether those with employees and a physical presence in China or the myriad small businesses that rely on Chinese manufacturing plants and the China-U.S. supply chain for wholesale and retail goods.  It might be ineresting to check with local retailers, light industrial operations, manufacturers and other companies to see if they plan for an annual disruption and what the business effects are.  You might also check with travel agents, tour operators, translators, vacation clubs and other globe-trotting entities in your area — do Lunar New Year jaunts translate into demand?

It’s fascinating to note that — as this New York Daily News article points out — the incoming Year of the Dragon represents the most powerful symbol in the Chinese zodiac; it’s thought to be a harbinger of good fortune, prosperity and wealth.  It’s expected that parents wanting to give their offspring the best possible start will have planned lots of extra births for the coming year, not only in China but in communities with strong Chinese ties. The Dragon year also bodes well for the Korean and Vietnamese communities, the article notes.  This is definitely something to check into with residents, doctors, hospitals, day-care centers and other facets of the economy likely to be affected by any sort of baby boost.  In China, demand for infant products is expected to rev up the economy, according to Businessweek.

And get this: The United State Treasury’s engraving and printing department in November even unveiled a special Year of the Dragon dollar bill – with serial number beginning with “8888″ (eight being an auspicious number in Chinese lore) that’s available for sale at www.moneyfactorystore.gov. 

Also,  commemoration is becoming more common around the globe, including in the United States.   Obviously if your community has a significant number of Chinese members, you might find businesses that are affected by observance — from a productivity standpoint, or through providing goods and services to those celebrating the holiday.  Here’s an interesting Wikipedia entry listing dozesn of U.S. communities with a significant Chinese population; that’s one way to start but don’t limit your reporting to Chinese companies or individuals only; I can say from personal experience that people of all heritage here in the U.S. acknowledge the transition in one fashion or another.

Just take a look at this list of activities posted by the San Francisco Chronicle, from a fun run to a symphony concert.

Casinos tie promotions and events to the Lunar New Year; one near me issues commemorative slot-player cards with the year’s symbol.  Aside from entertainment venues, check with party supply stores, caterers, specialty grocers.  Talk with employers about workplace issues and holiday policies.  Cards, e-cards, good luck charms, school activities — all of these items are supplied by some small businesses (and some large ones.)  Lunar New Year — especially with so many hopes tied to the Dragon year — is an upbeat, fun and colorful story that nevertheless can have substantive economic underpinnings.    Kung Hei Fat Choi!