How Chinese New Year can Impact your Business

Chinese new year business impact

The Chinese New Year is less than a month away and the festivities are certain to have an impact on business. In the Chinese Zodiac calendar, 2016 marks the year of the Monkey. The monkey is said to bring Good Luck, Protection and Swiftness. However, if the products of your business are made, shipped from or sold in China then one thing that will definitely not enjoy this ‘swiftness’ is your Supply Chain. The Chinese New Year is one of the few mandatory holidays that all citizens of the country observe. Last year, over the festive period, the Chinese Government estimated that 3.6 billion passenger journeys were made across the country. In fact, this annual migration is so immense; it even has its own name, The Chunyun.

This mass migration of workers is certain to have an effect on business. For the 7 to 14 days surrounding The Chinese New Year many Chinese companies come to a sudden stop. Factories, Restaurants, Small shops and even the banks shut down.  Two weeks may not seem like a long time, but imagine if during these two weeks you realise you’ve forgotten something and need it shipped from China immediately. Now you will have to wait until after the holiday period!

Unfortunately, no matter how much you beg, freight, simply does not move in China during the Chinese New Year. Pilots shut down, lock their planes and leave for home with their crews. In addition to Air Freight delays, shipping from China can also become chaotic, bringing your supply chain to a standstill. (Most International Shipping and Courier services such as DHL and FedEx usually post the expected delays on their websites, so be sure to utilise this information). So if your business relies on Chinese vendors for its stock, you will likely need to increase it for the Chinese New Year. This should be done not by ordering a huge amount before the Chinese New Year but by marginally increasing your stock in the run up to the festive period. This can help smooth out the bump and help your business avoid supply chain disruptions.

Does your business have everything in stock to run smoothly from Feb. 7th to 14th ? If you have any doubts about this, then now is the perfect time to do that long overdue stock count.

Transfer Money Before Chinese New Year:

TransferMate can save you money on your international bank transfer to China thanks to our better exchange rates and lower transfer fees than banks. Be sure to make your Transfer well in advance of the Chinese New Year in order to avoid any delays.

It is quick and free to compare us to your bank! You just need to call one of our Money Transfers to China specialists on +353 1 635 3700 or you can open an account online now for free by clicking here.

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