What impact will the Chinese New Year have on your business in China? What strategies should you adopt?
Some events tend to trigger demand increases in certain sectors, such as Black Friday, Cyber Monday or Christmas. All these holidays take place over short periods of time and create busy seasons in terms of shipping and operations.
During these busy seasons, managers need to think ahead and prepare their business for changes in demand. As far as Hong Kong is concerned, the season that is most intense in this regard is the Chinese New Year.
What is Chinese New Year?
Chinese New Year, also known as CNY, is an important annual celebration of Chinese culture. It marks the beginning of a new year according to the traditional Chinese calendar and is usually celebrated in late January or early February. The date of the Chinese New Year varies each year according to the lunar calendar and is determined by the cyclical tracking of the phases of the moon. Traditionally, this period was used by people to go hunting and prepare for the coming year.
Today, Chinese New Year is celebrated in many countries around the world with festivals and parades. Chinese New Year’s Eve is considered an important day to finish household chores and remaining duties, as well as to settle debts before entering a new year. On Chinese New Year’s Eve, families gather for dinner to celebrate and children receive red envelopes filled with money from their relatives. During this time, people wear new clothes, set off firecrackers, give each other gifts, attend dragon and lion dances in public squares and parks, and gather with their families.
When is Chinese New Year?
Chinese New Year is celebrated on the first day of the Lunar New Year by billions of people and it is a time when many people anticipate the festive period. E-commerce businesses, especially dropshipping, can be hugely affected by this period. This is because delivery times increase during this period as many businesses close at this time to allow their employees to go home. This is why the days leading up to Chinese New Year are under high tension. The priority is to get all products out of the ports before the country closes. This can lead to higher freight costs and longer transit times if there are delays at the port. As a result, many customers are likely to receive their goods late.
Although customers who choose to order directly from China expect long delivery times due to the geographical distance, the New Year festivities should not be allowed to extend delivery times.
It is therefore important for companies to plan ahead and ensure that they have sufficient stock before the Chinese New Year and to adhere to shipping schedules so that their customers are not deprived of the products they want. Ultimately, it is possible for businesses to remain successful during this period if they plan accordingly and are careful to order products from China in advance.
What happens during this period?
During the Chinese New Year (CNY), mainland Chinese tend to celebrate for about 20 days. Business in China simply stops. A blackout, literally. Students get a month’s winter holiday, while working adults get seven days off. Business usually resumes on the eighth day of the holiday, as “8” is considered an auspicious number in Chinese culture. For B2B organisations, this means a drop in business as most people take the day off to be with their families. The celebration extends far beyond mainland China to Singapore, where the Chinese population is in the majority. The celebration in Singapore lasts for 15 days, with the first two days being declared public holidays. Major businesses start operating on the third day, but many Chinese-owned businesses are likely to remain closed for longer as it is their only break of the year.
Read on for all our tips on keeping your business afloat.
What e-commerce strategy to adopt during the Chinese New Year?
The Chinese New Year is an excellent opportunity to develop your e-commerce business. It is important to adopt the right strategy to take advantage of this period and grow your business.
How can you do this? First of all, you can start by sourcing products or asking yourself what products might be of interest during this particular period.
Dropshipping is also a great option as it allows you to sell products without having to stock them, investigating sites is then the most. Searching for new suppliers and SEO are other strategies that can be used to reach more customers and increase sales during this period. Every business has different opportunities, so it is important to evaluate what works best for you and your customers.
Holidays during this time mean that customer demand can be higher, so taking advantage of this opportunity can help your business grow exponentially.
In conclusion, the Chinese New Year presents many different opportunities for e-commerce businesses looking to increase their profits. It is therefore important to adopt the right strategy to make the most of this period to avoid the impact of Chinese New Year.
The role of Merritt Asia
Our firm has been operating in Hong Kong since 1998 when we registered our first company. We are ready to help you achieve your goals and our firm can assist you with your accounting or act as company secretary for your business.
For more information, please contact us at email@example.com