For those less familiar with Chinese business practices, here are some key considerations to ensure a smooth start to the year:In 2024, the Year of the Dragon begins on February 10th. Known as a symbol of strength, courage, and ambition in Chinese culture, the Dragon represents success, vitality, and new beginnings—qualities we hope will inspire your business in the year ahead.As the Chinese New Year approaches, we at OnePointTwoChina wish to remind our customers and contacts of the importance of planning ahead during this festive season.
As we fast approach Spring Festival, we’re just reminding our customers and contacts that Chinese New Year falls on 22nd January 2023. The majority of our suppliers are already in the process of scaling back their output as they prepare for the holiday.
Most factories and suppliers across China are already preparing to scale back operations as the Spring Festival nears. It’s critical to plan accordingly, as the majority of businesses will close, with operations gradually resuming by February 24th.
For those new to business in China – here are some key points to take into consideration:
1. National Celebration
The Spring Festival is the most significant holiday of the year in China. Employees often travel back to their hometowns to celebrate with family, making this a nationwide event. During this time, everything shuts down—factories, offices, and even many logistics services. Be sure to plan well in advance to accommodate this extended closure..
2. Payments
The Spring Festival is traditionally a time to settle debts and pay bonuses. To maintain strong relationships with your suppliers, it’s important to adhere to payment terms and consider making any payments due slightly early. This gesture of goodwill will leave a positive impression and strengthen your partnerships.
3. Lead Times
Unprepared businesses may face significant lead time impacts. Stock up early, double-check production schedules, and ensure orders are finalized well before the holiday. Last-minute requests are unlikely to be accommodated, so plan ahead to avoid disruption.
4. Freight Costs
As the holiday approaches, freight rates often increase due to high demand. While global freight costs have stabilised since the highs of 2022, anticipate a potential spike during this busy period and adjust your budgets accordingly.
5. Closure Times
Smaller factories may take longer holidays than larger, more established companies. Always confirm your supplier’s specific closure and reopening dates—never assume they align with others.
6. Sub-Contractors
Many suppliers rely on sub-contractors for components or services. Smaller subcontractors often extend holidays longer than primary suppliers, causing potential delays. Ensure you understand the full supply chain impact when planning production.
7. Workforce Return
The post-holiday period can bring challenges as workers who travel home for Spring Festival sometimes choose not to return to their jobs. This can slow production and impact quality as factories train new hires. Expect potential delays in production ramp-ups.
8. Visits
Avoid scheduling visits to China within two weeks before or after the holiday. Suppliers are focused on fulfilling orders and managing transitions, leaving little time for hosting visitors. Additionally, travel during this period is notoriously difficult, with limited availability and high costs.
The Year of the Dragon
According to the Chinese zodiac, the Year of the Dragon is associated with boldness, determination, and ambition. Those born in 1952, 1964, 1976, 1988, 2000, 2012, and 2024 belong to this zodiac sign and are believed to be charismatic leaders who thrive under pressure. Compatible signs include the Monkey, Rat, and Rooster.
If 2024 is your year, remember to bring luck by wearing red—perhaps even some red undergarments!
For more advice on working with Chinese suppliers, navigating the holiday season, or streamlining your product manufacturing processes, reach out to us:
📞 Call us at 01225 460 388
📧 Email us at mail@onepointtwo.com
Wishing you a prosperous Year of the Dragon!
