During this Year of the Horse Spring Festival, if there is one place in Shanghai that truly captured the spirit of the season, it would have to be the Yuyuan Lantern Festival.

The recently concluded 2026Shanghai Yuyuan Lantern Festival recorded its highest-ever foot traffic. This year’s Yuyuan Lantern Festival drew six million visitors across its six lantern zones, representing an increase of more than 30% year-on-year. On the first day of the Chinese New Year,overall footfall at the Bund Finance Center (BFC) surged by 33%, with indoor footfall rising 25% to a record high. The Yuyuan Lantern Festival generated over 100 trending searches online and was featured seven times on CCTV’s Xinwen Lianbo news program.

This enthusiasm even transcended borders and became something of a “diplomatic phenomenon”.

From British Prime Minister Sir Keir Starmer to Uruguayan President Yamandú Orsi, international dignitaries came to experience the Yuyuan Lantern Festival one after another. International visitors accounted for over 10% of the total, making Yuyuan a vibrant gateway for the world to experience Chinese culture.

Beneath its status as a top cultural sensation, how did the Yuyuan Lantern Festival extend beyond the ”eight gates” to reimagine the Grand Yuyuan?

From “Garden” to “City”: Breaking Physical Boundaries

To appreciate this year’s Yuyuan Lantern Festival, let’s start with a look at the map of the Grand Yuyuan.

In the past, Yuyuan was constrained by its own physical boundaries. The Yuyuan Malls around the Zigzag Bridge was overcrowded and hard to enter, while the surrounding commercial areas saw uneven crowds. The eight gates not only marked the boundaries of the Yuyuan Lantern Festival, but also became barriers that contained visitor flows.

But this year, Yuyuan achieved a historic breakthrough.

Through the Yuyuan Lantern Festival, Fosun illuminated the entire Grand Yuyuan area. The trail of lights weaving together “the past, the present, and the future” extended from Yuyuan’s core area through the Old City Park, Fangbang Middle Road, Fuyou Road, all the way to BFC along the Bund. This was not simply an expansion of physical space, but a strategic redrawing of the map.

The six lantern areas no longer stood as isolated attractions. The lanterns guided visitors seamlessly from Yuyuan’s core area to BFC, integrating the lively spirit of Old City of Shanghai with the cosmopolitan flair of the financial district.

The clearest example is Fangbang Middle Road. This once-overlooked “old market street” connecting Yuyuan and the Bund transformed this year into an immersive scroll inspired by The Classic of Mountains and Seas. While strolling through the lanterns, visitors barely noticed they have left Old City of Shanghai behind and entered a trend-setting lifestyle district.

By extending beyond Yuyuan, the Yuyuan Lantern Festival did more than expand its physical footprint. This iconic cultural event evolved into a dynamic urban cultural phenomenon that lit up the entire city.

Leveraging Intangible heritage and trendy collectibles to break cultural boundaries

While physical space sets the stage, fresh content injects the soul.

This year, the Yuyuan Lantern Festival ushered in the fourth season of the “Adventure of Mountains and Seas”, titled “Vast Wilderness”. It integrated intangible heritage lanterns and cutting-edge digital light shows to create a fantasy world rich in oriental aesthetics, where mythical creatures pulse with light and ancient scrolls spring to life under the night sky.

This combination of intangible cultural heritage and technology created a powerful appeal.

The Yuyuan Lantern Festival buzzed with local families soaking up festive spirit alongside international tourists. It also became one of the city’s hottest social check-in spots for Gen Z hanfu enthusiasts.

The atmosphere shifted along the trail of lights to BFC. The Chinese New Year Fair, in collaboration with Pop Mart sparked a “time-travel dialogue” between ancient traditions and today’s hottest collectibles. Iconic Pop Mart characters brought Chinese New Year traditions to life, striking a chord with young consumers while turning intangible heritage lanterns displays into viral photo spots.

The Grand Yuyuan evolved from a nostalgic landmark into a vibrant hub blending cultural roots with modern trends.

From a “city landmark” to a “cultural hub”: the strategic power of experience innovation

Behind Yuyuan Lantern Festival’s record-breaking success lies Fosun’s innovation in integrated cultural, tourism, and commercial experiences. In today’s saturated markets, the evolution of Grand Yuyuan stems from breaking the boundaries of traditional commerce.

The continued success of the Yuyuan Lantern Festival reflects Fosun’s innovation in culture-commerce–experience. In an era defined by limited space and resources, Fosun has reimagined traditional commercial boundaries—and that shift is what’s quietly transforming the broader Grand Yuyuan.

Innovation, of course, did not happen overnight.

From last year’s collaborations, where time-honored brands such as Laomiao Gold and Songhelou teamed up with domestic animations like Heaven Official’s Blessing, to Lv Bo Lang and Shanghai Classical Restaurant developing distinct brand personalities to connect with young consumers, Fosun has enabled these time‑honored brands to truly transform into China Chic icons. Nanxiang Steamed Bun Restaurant and Songhelou have also expanded overseas.

Once scenario innovation and cultural innovation are solidly in place, commercial success naturally follows.

This Spring Festival, Yuyuan Lantern Festival’s official lanterns sold out almost instantly, while traditional delicacies such as Ningbo tangyuan saw sales surge year‑on‑year.

During the lantern festival, total sales across the six lantern zones surpassed RMB1.2 billion, up 21% year-on-year. Gold and jewelry alone contributed RMB720 million, up 25% year‑on‑year.

Continuous scenario innovation has also reshaped the brand ecosystem, bringing together crowd favorites such as Ah Ma Handmade and Laopu Gold as well as high-end fashion brands such as Versace and Alexander Wang. This has created a consumer ecosystem integrating time‑honored brands and high-end fashion brands.

In addition,drawing on the area’s long history as a center of the silver and gold trade, the Shanghai International Jewelry & Style District has officially launched in Grand Yuyuan. By bringing together leading brands and enhancing the industry chain, the Grand Yuyuan is poised to become the global hub for Chinese jewelry and fashion.

Looking ahead,as a series of scenario-innovation initiatives such as the Grand Yuyuan Flower Festival continue to launch, Grand Yuyuan, a historic garden-temple-market landmark, is evolving into a cultural hub integrating culture, tourism and commerce. By connecting venues with heartfelt experiences, Fosun is establishing Grand Yuyuan as an enduring urban icon in Shanghai.