Navigating Chinese New Year Shutdowns: Tips for Merchandise Buyers and Logistics
Navigating Chinese New Year Shutdowns: Tips for Merchandise Buyers and Logistics
Chinese New Year, also known as the Spring Festival, is a significant holiday in China. It’s a time when people from all corners of the country and abroad travel back home to spend quality time with their families. This holiday typically lasts one to two weeks. For many workers, the break is even longer, providing a well-deserved rest after a year of hard work. Consequently, factories are generally closed and non-operational during this period for up to one month.
This shutdown can impact inventory preparation for the first half of the year, including events like Valentine’s Day and even mid-year sales in June. As a merchandise buyer, how can you mitigate the effects of the shutdown? Here are some tips:
- Know When Chinese New Year Occurs: The date is decided by the Chinese Lunar Calendar, which is based on the cycles of the moon and sun and is generally 21–51 days behind the Gregorian (internationally-used) calendar.
The day of Chinese New Year is a new moon day, usually the second after the winter solstice. It usually falls between late January and mid-February. It’s crucial to keep track of these dates and plan accordingly. Here are the specific dates for Chinese New Year from 2024 to 2034:
- How Long is the Chinese New Year Holiday?: China's public holiday for Lunar New Year is 7 days, from Chinese New Year's Eve to the sixth day of the lunar calendar new year. However, celebrations of Chinese New Year traditionally last for 16 days, starting from Chinese New Year's Eve to the Lantern Festival. In addition to the holiday itself, workers often need time to travel to and from their hometowns and adjust back to work. Therefore, you can expect a period of 15-30 days with lower efficiency.
- Plan for Bulk Production: If there are products that need to be shipped before the Chinese New Year, calculate your order deadline based on your product’s lead time and the start of the holiday. This is especially important for Valentine’s Day products, as February 14th often falls during the factory’s Chinese New Year break. For instance, if you’re selling plush toys for Valentine’s Day, with a lead time of 50 days and about 30 days of transportation, you should start sampling in October and production in November to meet the January 14th air freight delivery deadline. If shipping by sea, plan even earlier. This ensures that your products reach the market in time for the holiday season.
- Shipping: You can utilize a variety of shipping methods to suit your needs. If time permits （≥30 days）, sea freight might be a viable option. For more urgent shipments（≤15 days）, air freight could be the way to go. However, air freight can be quite pricey. Balancing cost and efficiency, you might also consider engaging third-party logistics in China to facilitate direct shipping from the factory to your end customers.If production can’t catch up, don’t worry. There are still other tasks you can focus on during this period.
- Develop New Product Samples During CNY: Prepare new product information in advance and provide it to the factory for sample preparation. The sample room usually starts work earlier than the production line, and the holiday is about 1-2 weeks shorter. This allows you to get a head start on product development and ensures that your new products are ready for production as soon as the factory reopens.
- Expand to New Suppliers Products During CNY: During this period, the factory’s sales team is relatively free, and their holiday is only about a week, making it a good time to explore new suppliers. This can help diversify your supply chain and reduce the risk of disruptions due to the Chinese New Year shutdown.
- Plan a trip to the factory: Even though I’m a regular visitor, each trip offers fresh insights. It’s really beneficial to walk the production line, engage with the workers at each stage, and gain unexpected knowledge. This hands-on experience helps align understanding with you and the factory at the supply chain level, making communication more effective. For instance, many clients wonder why plush toy factories don’t accept orders under 500 units for stuffed toys. Once you’ve been to the embroidery department, it starts to make sense. Each product may require a 3-hour thread change, but the actual embroidery for small orders only takes 30 minutes. This makes the overall cost prohibitively high.
In conclusion, while the Chinese New Year shutdown can pose challenges for merchandise buyers, with careful planning and strategic decision-making, you can navigate this period effectively and ensure that your business operations run smoothly.
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