Fraught winter in China as New Year and Olympic celebrations brace for COVID

Ahead of the Chinese New Year (CNY), in which people around China’s vast landmass travel to their hometowns for what is typically the largest human migration on earth, the threat of Omicron hangs over the celebration, with commercial implications.

Why it matters

Chinese New Year, also known as Lunar New Year, is not only a colossal celebration in China itself but is also a major festival among the global Chinese diaspora. As a result, it is a major advertising and shopping occasion.

According to ad agency BBDO Shanghai, quoted in WARC, a single week of frenzy during Chinese New Year can bring in as much as 20-30% of an FMCG brand’s annual sales.

E-commerce has been a major pillar of CNY’s business side, with any COVID-induced lockdowns likely to drive even more usage. For foreign brands in particular, it is important to be aware of the festival’s nuances especially in a difficult year when families may not be able to gather.

A threat of lockdown

• The highly infectious Omicron variant is now causing outbreaks across the country whose zero-COVID approach necessitates swift, strict action. The 13 million residents of the central Chinese city of Xian have been under lockdown since 23rd December. Now, a port city neighbouring Beijing is also scrambling to control an outbreak.
• Last year had been disrupted with Transport Ministry figures showing 870 million trips compared to 2019’s three billion, but 2022 was supposed to be a recovery year.
• Though there is as yet no nationwide lockdown, for many would-be travellers the possibility that they may be stuck in their hometowns and therefore jeopardise their standing within their companies (and even year-end bonuses) should they have to miss work, is causing an agonising dilemma, the SCMP notes. In response, many large-scale celebrations in cities across the country are limiting or cancelling plans.
• Further complicating the situation: the Winter Olympics are due to kick off in the capital city, Beijing, on the 4th February. A crucially important national moment, officials at all levels of government will want to avoid having the event dampened by the virus. Citizens are expecting pre-emptive action ahead of the games.

Quote

[My] “company is fine if we want to take leave for the holiday but I am worried about all the quarantine and restrictions in provinces like Henan and Hebei where our parents live,” Yang Min, a Foshan-based lawyer talking to the South China Morning Post.

Sourced from SCMP, BBC, WARC, Reuters