How Does The Chinese New Year Impact Retailers, Manufacturers and YOU?

February 06, 2019

How Does The Chinese New Year Impact Retailers and Manufacturers

Happy Chinese New Year!

So, what is Chinese New Year and why does it affect retailers, manufacturers and you? If you are in business and do not know the answer to that question, your business could suffer. But first let's make sure we know exactly what the Chinese New Year means to the people of China, before we take a look at what it could mean for you and your business. 

According to Wikipedia, Chinese New Year is the Chinese festival that celebrates the beginning of a new year on the traditional Chinese calendar, which is based on Lunar cycles. The festival is usually referred to as the Spring Festival in mainland China and traditionally takes place from the evening preceding the first day of the year to the Lantern Festival held on the 15th day of the year.

The first day of Chinese New Year begins on the new moon that appears between 21 January and 20 February. This year the first day of Chinese New Year was on Tuesday, 5 February, initiating the Year of the Pig. Our partner website, C Larboard, wrote a great blog post last year regarding the traditions of Chinese New Year, Make sure you check it out for more information. 

Considering a great portion of this country's manufacturing comes out of China, the Chinese New Year actually can affect a lot to manufacturers and retailers.

Chinese New Year is such of an integral part of Chinese culture, that businesses, factories, offices, etc. all close for 2 to 3 weeks and people travel back to their home towns to visit their families.

In fact, Chinese New Year results in the world’s largest annual migration, known as the Spring Festival Travel Rush. The total trips made by plane, train, bus and ship can reach nearly 3 billion.

If You Are a Manufacturer, How Can The Chinese New Year Affect Your Business? 

If you are a manufacturer here in the U.S., perhaps some of your needed parts for assembly come from China. If you don’t plan accordingly, by placing orders well prior to Chinese New Year, you could be without your parts for several weeks to several months. 

Just think of this, perhaps you failed to place a part order prior to Chinese New Year. So now you have to wait for the factory to return to work, make your part and then they have to ship it to the United States.

Normally, the most cost effective way to get product from China to the US is via shipping container. Most shipping containers could take a month to get to a US port and then the product has to be shipped to its final destination.

What does all this mean? It means you may not receive your part for a total of 2-3 months!

If You Are a Retailer, How Might The Chinese New Year Impact Your Business?

If you are a retailer and plan on ordering product directly from a manufacturer or from one of your distributors, if it is too close to Chinese New Year, the product may not be in stock and possibly back ordered for a long period of time. It's the same scenario as above. You may not get your product for 2-3 months.  So plan accordingly!

How Does The Chinese New Year Affect Consumers?

After reading the information above, the answer to this question is pretty simple. If manufacturers and retailers are not on the ball and planning accordingly, the products consumers want or need, won't be available. That will translate to lost business for the retailer and a big hassle for the shopper. 

Any Questions About Retail and Manufacturing, Please Ask!

Here at Defiance Tools®, Rich and I are very familiar with the Chinese New Year as well as a lot of Chinese customs, manufacturing and retail. If you ever have any questions, please feel free to ask in the comments bellow and if we don’t know the answer I’m sure we know someone who does. 

Zoe’ Coulcher ~ Co-Founder Defiance Tools




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