It’s easy to enter the Asian market during Lunar New Year. It’s hard to get it right.

Companies often make crucial cultural missteps that alienate consumers during one of the biggest spending events of the year.

International businesses have long capitalised on the spending surge around Lunar New Year. People who mark the massive global celebration – primarily people of eastern and south-eastern Asian backgrounds – represent a significant market opportunity.

To get a slice of the Lunar New Year revenue pie, many companies throughout the years have launched targeted marketing campaigns to engage with Asian consumers – including high-profile global brands.

For Lunar New Year 2024, which falls on 10 February, Apple released its Chinese New Year-themed film Little Garlic, shot entirely on the iPhone 15 Pro Max. Burberry introduced a capsule collection celebrating the Year of the Dragon, touted by brand ambassadors Tang Wei and Chen Kun in Chengdu, China. Coca-Cola released its Tết campaign in Vietnam, featuring the Golden Dragon symbol, inspired by the historic Dragon from the Lý Dynasty.

Many people around the world have come to expect these ambitious brand campaigns – and companies have, in many cases, executed to the delight of customers. However, leveraging the Lunar New Year for commercial success isn’t as simple as using the colour red or employing Asian ambassadors. As brands of all sizes have begun to venture into Lunar New Year market, some have made crucial cultural missteps that have damaged brand reputation and impacted their market share in a profitable window.

In 2019, Dolce & Gabbana faced widespread backlash for an advertising campaign that featured a Chinese model struggling to eat Italian food with chopsticks. The controversy escalated quickly, as many consumers perceived the advert as mocking Chinese culture. It led to the cancellation of a highly anticipated fashion show in Shanghai as well as mass boycotting. The mistake has left lasting consequences: the brand’s reputation is still shaky in the massive Chinese consumer market. 

That same year, Burberry’s first Lunar New Year campaign came under scrutiny. Critics said its stark portrait of a Chinese family came off as “creepy” – in direct contrast to the joyful, family-centric celebrations core to Lunar New Year festivities. “It showed a lack of empathy from the brand,” says Tana Licsandru, a senior lecturer in marketing and researcher on inclusive branding at Queen Mary University of London.

Licsandru says brands that miss the mark often fail to understand and reflect the audience’s lived experiences and perspectives – which can make them look culturally insensitive at best. “The way to do it is to bring people from the targeted communities to look at the adverts and see whether your message comes across the right way.”

Mistakes like these are missed opportunities for brands to connect meaningfully with their audiences during a season when spirits are high and wallets are open. “They fail because they don’t employ the right people or only make a tokenistic effort,” adds Licsandru.

Yet brands are becoming more adept at navigating cultural nuances by partnering with external stakeholders to bridge the gap between Western and Eastern markets. These businesses that often operate in target markets can help prevent brands from cultural insensitivies, and design campaigns to resonate with Asian communities and respect their diverse customs.

In Vietnam, for instance, “consumers are keen on online shopping and discovering products from abroad, influenced heavily by word-of-mouth”, says Peter Huynh, founder of Intelligence4Start, a Melbourne-based agency that helps international brands enter the Vietnamese market. In China, many consumers often snap up luxury goods; Q1 luxury sales are expected to soar, in part due to purchases during Lunar New Year.

“To understand what, why and how people celebrate is very important,” says Ranjana Singh, Vietnam and Indonesia chairperson of WPP, a global marketing and communications company. “We see many examples of brands just ticking the box. For example, superficial showing of large families, but that doesn’t make you stand out.”

Although emerging brands may tempted to enter the market during the flurry of Lunar New Year spending, Huynh cautions the timing might not be ideal, especially for newcomers to the Asian market.

Competition is high, he says, and not all products align with Lunar New Year customs – so the product-market fit may not be there, which can be glaringly obvious with so many eyes on Asia-focused campaigns. “If you’re a new player in the market, you shouldn’t take the risk by coming into Asia during Lunar New Year. You may wait until the low season to stand out and grab the consumer’s attention.” 

Expanding into Asian markets, particularly during the Lunar New Year, requires careful consideration – and is not for those unwilling to tackle challenges head-on.