Embracing the wisdom of the Wood Snake
Central to this year’s symbolism is the idea of “shedding old skins”. Just as a snake sheds its skin to accommodate growth, Asian businesses must be willing to discard outdated models that limit flexibility. This extends beyond corporate restructuring to a full reimagining of cultural mindsets, leadership philosophies, and stakeholder relationships.
By recognising that corporate success goes well beyond short-term profit, forward-thinking organisations align themselves with the Wood Snake’s emphasis on continuous evolution, emphasising long-term growth, stakeholder well-being, and ethical considerations.
Throughout the region, this perspective resonates with an increasingly conscious consumer base. The moral economy, driven by Millennials and Gen Z consumers in Asia, prioritises authenticity, ethical sourcing, and eco-conscious practices, aligned with the Wood Snake’s call for transformation. Businesses that embrace these shifts and lead with integrity and environmental awareness are poised to gain the trust of increasingly discerning consumers and thrive.
South Korea: From steel to silk
South Korea exemplifies the transformative ethos of the Wood Snake, with conglomerates and specialised companies alike demonstrating the power of reinvention. Hyundai and SK Hynix are suitable examples. Once focused on cost-competitive production, they have pivoted to high-value innovation, heavily investing in research and development, proprietary technologies, and design. Hyundai’s advancements in electric vehicles (EVs) and hydrogen fuel cells highlight their commitment to sustainability, all the while remaining competitive. SK Hynix’s prowess in the production of high bandwidth memory highlights its ability to shift resources to where they are most needed.
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Yet, challenges remain. The rapid pace of technological change demands continuous adaptation, regularly “shedding” outdated processes. South Korean companies must navigate the pressures of global competition while fostering a corporate culture that prioritises agility, open communication and embraces ongoing experimentation. Bridging the gap between entrenched hierarchies and the demands of a fast-evolving marketplace is key to sustaining their momentum.
Japan: Continuous reinvention and mastery of intangibles
Japanese corporations, known for their discipline, quality control, and mastery of operational efficiency, have long exemplified the art of reinvention. Toyota’s philosophy of kaizen (continuous improvement), which aligns perfectly with the Wood Snake theme of transformation, ensures iterative improvements that keep the company ahead of the curve.
Sony, once a consumer electronics manufacturing giant, has transformed into a diversified entertainment behemoth. These companies highlight how adaptability and a willingness to pivot can preserve corporate value across market cycles. These leaders are setting examples smaller companies are now following, and the increased M&G activity we have seen in Japan is a testament to the value creation that is happening across the entire corporate Japan landscape.
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However, the challenges posed by Japan’s ageing population and deeply rooted hierarchical structures remain significant. Companies like Fast Retailing (the parent company of Uniqlo) have responded by empowering younger leaders, adopting data-driven models and fostering customer-centric models of growth. By pairing these new approaches with their traditional strengths in quality and long-term vision, Japanese businesses can maintain their strong reputation while evolving in a new era.
India: Bridging tradition and transformation
In India, the Wood Snake’s ideals of wisdom and interconnectedness resonate strongly with a market that is rooted in tradition and brimming with disruption. Established conglomerates like Tata Group embody these values, leveraging a legacy of trust and community development to explore new frontiers like EVs, renewable energy, and digital services. Meanwhile, much smaller companies, like Udaan in small-scale yet scalable B2B (business-to-business) commerce, and Zomato in food delivery and quick commerce, demonstrate how innovation can bypass traditional pathways to reduce inefficiencies and create value.
However, unlocking sustained corporate value in India requires more than innovation. Robust governance, adherence to regulatory frameworks, and trust-building are critical. The country’s vast socioeconomic diversity demands solutions that cater to multiple demographics while incorporating grassroots-level insights. Successfully navigating this complexity encapsulates the essence of the Wood Snake’s adaptability in motion.
China: From ‘factory of the world’ to tech innovator
China’s transformation from the “factory of the world” to a hub of innovation offers one of Asia’s most striking examples of reinvention. Waves of success of tech giants underscored the power of investing in intangibles — brand equity, intellectual property, and platform ecosystems — to achieve global prominence. These companies have not only expanded internationally but also shaped global consumer markets. New waves of tech-savvy consumer companies, from food and beverage brands to retailers re-inventing supply chains, are now demonstrating the benefits of understanding and connecting with consumers — at home and abroad.
Yet, the journey is far from over. A dynamic regulatory environment, particularly around data privacy, fintech, and foreign investments, requires companies to balance domestic compliance with international competitiveness. The ability to adapt to policy shifts, foster internal cultures of innovation and maintain resilience in a maturing market will determine China’s next stage of corporate evolution.
Southeast Asia’s emerging tapestry: Weaving growth through collaboration
Southeast Asia, with its diverse economies and vibrant consumer bases, provides fertile ground for applying the Wood Snake’s lessons of interconnectedness and sustainable growth. Regional leaders in financial services and technology illustrate how collaboration and digital innovation can drive cross-border growth. The region’s abundance of opportunities for technology transfer and market integration positions it as a vital hub for corporate expansion and remains a largely under-explored area on the global investment landscape.
However, structural challenges, such as supply chain inefficiencies, relatively limited R&D funding, and regulatory disparities among member nations of the Asean, must be addressed. By fostering cross-border partnerships that prioritise sustainability and knowledge-sharing, Southeast Asian companies can scale their operations while remaining attuned to local cultural and market nuances.
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Rooted in growth: Sustainability as the core of corporate value
Underscoring all these regional differences is a common imperative: sustainability. The “wood” element in this zodiac cycle reminds businesses of the importance of interconnected ecosystems, urging them to integrate social, environmental, and governance considerations into their strategic DNA. Companies must invest in green supply chains, reduce carbon footprints, and prioritise inclusive growth.
Governments across the region are playing a pivotal role in this transition. South Korea’s Green New Deal, Japan’s net-zero targets, India’s renewable energy push, and China’s “dual-carbon” goals all exemplify policy frameworks nudging businesses toward cleaner production and responsible innovation. Meanwhile, initiatives like Singapore’s sustainable finance hub demonstrate how government incentives can drive cross-border collaborations, fuelling new market opportunities tied to green growth. Successful companies will embrace these policy environments not as constraints but as catalysts for novel value creation in a sustainable future.
A serpentine path forward to thrive
The Year of the Wood Snake beckons Asian companies to embrace transformation, resilience, and wisdom in a time of global economic uncertainty. From South Korea’s brand-building innovations to Japan’s continuous reinvention, from India’s balancing act of tradition and disruption to China’s leaps in tech-driven strategies — and finally, within the emerging giants of Southeast Asia — there are common ideas. In each market, corporate value creation depends on the willingness to evolve, to embrace sustainability, and weave together intangible assets like culture, leadership and intellectual property.
By internalising the Snake’s qualities of adaptability and insight — and by honouring “wood’s” call for growth, interconnectedness, and stewardship — Asia’s leading firms can create long-term value that transcends quarterly earnings. They can forge strong stakeholder relationships, inspire consumer trust, and seize new, sustainable opportunities across borders. In doing so, they embody the wisdom of the Wood Snake, continually shedding outdated norms while building the foundation for a more balanced, vibrant corporate future.
Vikas Pershad is portfolio manager, Asian equities, at M&G Investments. The views expressed in this article should not be taken as a recommendation, advice or forecast
