In China, the Chinese New Year is the most important holiday of the year and basically all stores are closed and will be for at least 1-2 weeks.
If you rely on Chinese suppliers for your products, then you should keep an eye on this holiday to avoid any impact on your business.
Chinese New Year Shutdown Schedule
New Year’s Eve: 28 January 2025
Chinese New Year: 29 January – 4 February 2025
New Year’s Eve and Chinese New Year offer a total of eight public holidays.
Workers returned to work on February 5 and gradually resumed normal production.
The vast majority of suppliers begin to reduce their intake of new orders in early January and only process orders that can be completed in time for the holidays.
Please note that although 12 February 2025 is the Chinese Lantern Festival, there is no public holiday in place, so there is no need to worry about the impact of downtime around that holiday.
Promotional day in the first quarter of 2025
Valentine’s Day (February 14th): A major promotional event for retailers, especially in the categories of gifts, flowers, chocolates, and jewelry.
Presidents’ Day (Third Monday in February, USA): Often associated with significant sales, particularly in the automotive and retail sectors.
Super Bowl Sunday (First Sunday in February, USA): While not a traditional sales day, many businesses, especially food and electronics retailers, run promotions leading up to the event.
Chinese New Year 2025: Why it will affect my business
The premise of the impact is that your business is dependent on Chinese suppliers.Because manufacturing is one of the most important links in the supply chain.
Supply Chain Disruption
During the Spring Festival, many factories in China cease operations for one to two weeks, some even for a month. This extended halt in production can lead to disruptions in your inventory and sales. If your products depend on parts or materials manufactured in China, this halt can cause breaks in your production line, potentially leading to a shortage of your product supply.
Communication Delays
During the Spring Festival holiday, you may find it difficult to communicate with your suppliers. Many businesses close for the holiday, and employees take leave. This could delay responses to your queries and requests, impacting your business operations.
Decrease in Product Quality
If you need to find another supplier during the spring season, you may risk a drop in product quality. You cannot be sure that the new supplier will provide the same quality as the original supplier, or they may need time to adapt to your product specifications and quality requirements.
Logistics Delays
Prior to the Spring Festival, many businesses increase their order volumes to stock up in anticipation of production halts during the holiday. This can lead to increased pressure on logistics, extending delivery times.
How to prepare for the Chinese New Year shutdown?
Inventory plan
Start by assessing your inventory needs ahead of time, you can plan by looking at last year’s New Year’s inventory plan as well as recent sales from the big sale. Increase inventory levels prior to shutdowns to ensure you can meet customer demand during and after the holiday season.
Talk to your suppliers about their shutdown schedules and adjust orders accordingly. This may require placing larger orders, so please don’t wait until after the holidays to start replenishing your inventory; while it may result in higher inventory fees, missing out on first-quarter holiday promotions will cause you more headaches.This is even more important if you sell items that are seasonal, especially those associated with Valentine’s Day.
Shipping Plan Adjustments
Plan your shipping schedules in advance of the holiday to avoid port and customs congestion. This could involve shipping products earlier or using air freight for urgent shipments. Consider alternative shipping routes or methods if necessary to minimize delays.
Supplier Operation Monitoring
Stay in close contact with your suppliers to understand their latest operational status. This can help you anticipate any potential issues and take action in advance.
Consider diversifying your suppliers to reduce dependence on any single source. This could involve finding secondary suppliers or sourcing some materials locally.
Post-Holiday Recovery Plan
Anticipate that production will gradually recover when workers return after the holiday.
Schedule follow-up meetings with suppliers to confirm schedules and production plans.
If you currently have goods that need to be transported quickly and safely, please contact us, as we have coastal warehouses in different regions of China that can quickly transport goods to your designated destination.
28 Dec, 2024
