Chinese New Year – The Real Impact

The year of the Dragon will be coming upon us on January 23 and it ushers in a year of excitement, unpredictability, exhilaration and intensity. The Chinese have a system based around 12 animals and each has a specific meaning in the culture. In this case, we are dealing specifically with the Black or Water Dragon. Looking at it from the distance, most westerners are unaware of the true meanings and how it affects the Asian livelihood. However, if you do business with factories overseas, you become increasingly in tune with the subtle influences these changes have on production and ingenuity. The 23^rd is the start of a 14 day celebration of the year and marks the beginning of spring in the Chinese world.

This year the impact is greater because of three things. First off, according to traditions, “Dragon years are lucky for anyone thinking of starting a business or initiating a new project of any sort because money is easier to come by for everyone, whether it’s earned, borrowed or received as a gift. Consequently, we can expect the economic downturn to ease up a bit in the coming year. Fortunes can be made but they can also be lost: Keep in mind that like all good things, the Year of the Dragon will come to an end and you will be held accountable for unreasonable extravagances.”

Next, here in the US, we have the Super Bowl, a major promotional event taking place during this time frame, and the impact could be devastating if you are not prepared or have planned for the last minute purchase. Those last minute details could be greatly impacted by this early celebration of the year, since the factory output in China will be interrupted. If you have put off your planning for time critical purchases coming out of Asia, it would be a wise idea to quickly ramp up your plans to buy merchandise now with expedited deliveries or you will be forced to wait until after the celebration and miss a major promotional event.

And finally, this election year in the US throws in another round of hype to this calendar cycle. As we break out of this recession into the next phase of economic development, what better year to be in than the year of the Dragon. However, remember the warnings. Extravagance can be painful and you should err on the cautious side. An insurance to that would be a good partner, who understands your needs and can make those strategies happen at realistic and sustainable rates. No need to drawn in but overly optimistic salespeople who see a break in the climate and push just beyond the reach of your company. Stay within the bounds; yet take advantage of the enthusiasm that surrounds you.