{"id":8936,"date":"2021-01-15T17:30:00","date_gmt":"2021-01-15T17:30:00","guid":{"rendered":"https:\/\/staginggembah.wpengine.com\/blog\/how-the-chinese-new-year-will-impact-production\/"},"modified":"2024-11-05T10:07:59","modified_gmt":"2024-11-05T16:07:59","slug":"how-the-chinese-new-year-will-impact-production","status":"publish","type":"post","link":"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/","title":{"rendered":"How the Chinese New Year Will Impact Production and What You Can Do Now to Prepare"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#The_Chinese_New_Year_Is_Almost_Here\" title=\"The Chinese New Year Is Almost Here\">The Chinese New Year Is Almost Here<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#A_Few_Facts_about_Chinese_New_Year\" title=\"A Few Facts about Chinese New Year\">A Few Facts about Chinese New Year<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Related_Considerations_for_Contract_Manufacturing_in_China\" title=\"Related: Considerations for Contract Manufacturing in China\">Related: Considerations for Contract Manufacturing in China<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#What_to_Expect_with_The_Chinese_New_Year\" title=\"What to Expect with The Chinese New Year\">What to Expect with The Chinese New Year<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Top_Tips_to_Minimize_Disruptions\" title=\"Top Tips to Minimize Disruptions\">Top Tips to Minimize Disruptions<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Forecast_Inventory\" title=\"Forecast Inventory\">Forecast Inventory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Call_Your_Manufacturer\" title=\"Call Your Manufacturer\">Call Your Manufacturer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Expect_Delays_and_Increased_Costs\" title=\"Expect Delays and Increased Costs\">Expect Delays and Increased Costs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Related_How_to_Vet_a_Manufacturing_Partner\" title=\"Related: How to Vet a Manufacturing Partner\">Related: How to Vet a Manufacturing Partner<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Rethink_Marketing_Efforts\" title=\"Rethink Marketing Efforts\">Rethink Marketing Efforts<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/#Dates_to_Consider\" title=\"Dates to Consider\">Dates to Consider<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_Chinese_New_Year_Is_Almost_Here\"><\/span><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"alignnone size-full wp-image-2170\" src=\"https:\/\/gembah.com\/wp-content\/uploads\/2022\/07\/chinese-new-year-lanterns.jpg\" alt=\"red lanterns\" width=\"1500\" height=\"1001\" \/>The Chinese New Year Is Almost Here<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Chinese New Year may begin on February 12, 2021 and last until February 26th, 2021, but the holiday isn\u2019t limited to just one week. In fact, people in China <\/span><a href=\"https:\/\/chinesenewyear.net\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">celebrate the New Year for a full month<\/span><\/a><span style=\"font-weight: 400;\">, shutting down factories, businesses, restaurants, and shops up to two weeks prior and not fully reopening until a week after the official holiday.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other regions and countries with significant Chinese or Sinophone populations, including Singapore, Vietnam, Indonesia, Malaysia, Myanmar, Thailand, Cambodia, the Philippines, and Mauritius, typically celebrate the Chinese New Year for two full weeks. If any of your manufacturing partners are in China or these regions, you can expect the festivities will impact your production schedule.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The good news is that with good planning, you can minimize disruption and keep your supply chain humming. The bad news is, COVID-19 has upended everything, and increased delays and costs are to be expected.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_Few_Facts_about_Chinese_New_Year\"><\/span><span style=\"font-weight: 400;\">A Few Facts about Chinese New Year<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Chinese New Year is also called Lunar New Year or Spring Festival because the holiday <\/span><a href=\"https:\/\/www.britannica.com\/topic\/Chinese-New-Year\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">coincides with the phases of the moon<\/span><\/a><span style=\"font-weight: 400;\">. Much like how much of the U.S. celebrates Christmas, Hanukkah, and Thanksgiving, the Chinese New Year is a time for food and family. Work is secondary.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Related_Considerations_for_Contract_Manufacturing_in_China\"><\/span><span style=\"font-weight: 400;\">Related: <\/span><a href=\"https:\/\/gembah.com\/blog\/considerations-for-contract-manufacturing-in-china\/\"><span style=\"font-weight: 400;\">Considerations for Contract Manufacturing in China<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The travel involved with bringing people together for the festivities has been called <\/span><a href=\"https:\/\/www.nationalgeographic.com\/travel\/destinations\/asia\/china\/celebrate-chinese-new-year\/#:~:text=The%20travel%20involved%20has%20been,country%2C%20returning%20to%20their%20hometowns.\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">the largest annual human migration<\/span><\/a><span style=\"font-weight: 400;\"> in the world. Nearly three billion people from across the country and various regions migrate to their hometowns to celebrate with all kinds of traditions. From elaborate decorations and haircuts ridding of last year\u2019s bad luck to wearing red and exchanging envelopes of cash, the Chinese New Year is something to behold.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Expect_with_The_Chinese_New_Year\"><\/span><span style=\"font-weight: 400;\">What to Expect with The Chinese New Year<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While your U.S. operations may be thousands of miles from China, you will feel the impact of the Chinese New Year directly, particularly this year, as we are seeing massive impacts from Covid-19. We\u2019ve seen port strikes, rising prices, equipment shortages and more over the past couple of decades, but what we are experiencing now is unprecedented. Never before have we had to compress 12 months of shipping into 7-8 months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This year, the first week of February is likely the last day factories will operate. Mass production and sample orders will cease and factories will stop taking orders with pre-Chinese New Year shipment dates in December.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shipping is a giant question mark, and costs have escalated to the point of breaking records. We are all all-time highs for ocean container rates, and air freight isn\u2019t much better. Shipping lanes will experience significant delays, and customs will take longer to process deliveries. Trucks at California ports will be one to two weeks behind schedule leading up to the holiday.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have been sourcing your manufacturing to China or other regions that celebrate the Lunar New Year, you may already have an annual process in place that accounts for all of these factors. For those new to overseas manufacturing or ones who feel they can do more to reduce their risks, there are several things you can do now to prepare.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_Tips_to_Minimize_Disruptions\"><\/span><span style=\"font-weight: 400;\">Top Tips to Minimize Disruptions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><span class=\"ez-toc-section\" id=\"Forecast_Inventory\"><\/span><span style=\"font-weight: 400;\">Forecast Inventory<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The first thing we recommend is forecasting your inventory. Assess your current inventory and estimate as accurately as possible as to when you believe you will stock out over the next six months. Even though you may have to spend more to store excess inventory to get you past the Chinese New Year, it can be catastrophic for a business to have depleted inventory where incoming orders cannot be fulfilled quickly. Customers expect to receive orders promptly, and many will immediately go elsewhere for similar products, even if they have to pay more, simply to get them faster.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you anticipate a stockout before April 2021, you should go ahead and place your order now, well ahead of the Chinese New Year. If you estimate you are adequately stocked until the end of Q1 but will need inventory in the April or May 2021 timeframe, you will want to place your orders before January 2021. You should be able to wait until after the Chinese New Year to place orders if your inventory is healthy through May.\u00a0\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Call_Your_Manufacturer\"><\/span><span style=\"font-weight: 400;\">Call Your Manufacturer<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">No matter where you have your products made, be aware that factories operate differently around the globe, even from year to year. So, even if this isn\u2019t your first time dealing with the Chinese New Year, it is a good idea to contact your factory contact to have a conversation about their calendar. Make sure you get specific dates as to when they plan to shut down for the Chinese New Year and when you should place your orders to avoid disruption.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Expect_Delays_and_Increased_Costs\"><\/span><span style=\"font-weight: 400;\">Expect Delays and Increased Costs<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">You can plan months ahead, accurately forecast inventory, and have in-depth conversations with the factory, but there is a good chance something will still fail to go as planned. Expect much higher shipping costs, as well as hiccups and delays somewhere along the supply chain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are thousands of companies just like yours that are trying to plan around the Chinese New Year &#8211; ordering inventory ahead of time, making calls, etc. The demand on factories is at its peak during this time of year, and COVID-19 has only made things worse.<\/span><\/p>\n<div class=\"banner\">\r\n    <div class=\"title\">\r\n        <span class=\"light\">Launch Your Product Faster<br> with<\/span>\r\n        <span class=\"bold\">Gembah<\/span>\r\n    <\/div>\r\n    <div class=\"subtitle\">\r\n        <span>1000\u2019s of vetted factories, designers, and experts are a few clicks away!<\/span>\r\n    <\/div>\r\n    <a href=\"\/expert-help\/\" target=\"_blank\" class=\"cta-button\">Get Started Now<\/a>\r\n<\/div>\r\n<style>\r\n    .banner {\r\n        background-color: #0692FB;\r\n        background-image: radial-gradient(rgba(255, 255, 255, 0.07) 1.6px, transparent 1px);\r\n        background-size: 7px 7px;\r\n        color: #ffffff;\r\n        padding: 30px;\r\n        text-align: center;\r\n        font-family: Arial, sans-serif;\r\n        border-radius: 12px;\r\n        max-width: 540px;\r\n        margin: 20px auto 40px;\r\n        box-shadow: 0px 8px 16px rgba(0, 0, 0, 0.2);\r\n        display: inline-block;\r\n    }\r\n\r\n    .banner .title {\r\n        font-family: 'Poppins', sans-serif;\r\n        font-size: 28px;\r\n        margin: 5px 20px 0;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        line-height: 1.2;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    .banner .title .light {\r\n        font-weight: 400;\r\n    }\r\n\r\n    .banner .title .bold {\r\n        font-weight: 900;\r\n    }\r\n\r\n    .banner .subtitle {\r\n        font-family: 'Jost', sans-serif;\r\n        font-size: 18px;\r\n        font-weight: 400;\r\n        line-height: 1.25;\r\n        margin: 14px 60px 20px;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        word-spacing: 0.8px;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    \/* More specific selector with !important overrides *\/\r\n    .banner a.cta-button {\r\n        background-color: #fdbc52 !important;\r\n        color: #1e1e1e !important;\r\n        font-family: 'Jost', sans-serif !important;\r\n        font-size: 20px !important;\r\n        font-weight: 900 !important;\r\n        padding: 9px 19px !important;\r\n        border-radius: 6px !important;\r\n        margin: 15px 0 10px !important;\r\n        cursor: pointer !important;\r\n        text-decoration: none !important;\r\n        display: inline-block !important;\r\n        transition: background-color 0.3s ease !important;\r\n        box-shadow: 0px 6px 12px rgba(0, 0, 0, 0.3) !important;\r\n    }\r\n\r\n    .banner a.cta-button:hover {\r\n        background-color: #e6a946 !important;\r\n    }\r\n\r\n    @media (max-width: 600px) {\r\n        .banner {\r\n            max-width: 90%;\r\n            margin: 20px auto;\r\n        }\r\n\r\n        .banner .title {\r\n            font-size: 20px;\r\n            margin: 0px 0;\r\n        }\r\n\r\n        .banner .subtitle {\r\n            font-size: 16px;\r\n            font-weight: 500;\r\n            margin: 20px 20px 0;\r\n            margin-bottom: 30px;\r\n        }\r\n\r\n        .banner a.cta-button {\r\n            font-size: 16px !important;\r\n            padding: 10px !important;\r\n            width: 100% !important;\r\n        }\r\n    }\r\n<\/style>\r\n\n<h3><span class=\"ez-toc-section\" id=\"Related_How_to_Vet_a_Manufacturing_Partner\"><\/span><span style=\"font-weight: 400;\">Related: <\/span><a href=\"https:\/\/gembah.com\/blog\/manufacturing-partner-questions\/\"><span style=\"font-weight: 400;\">How to Vet a Manufacturing Partner<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">We recommend working throughout the year to build a close relationship with your manufacturer. Having a personal connection with the factory may be the difference between getting inventory out on time and being pushed to the bottom of the list behind companies that have nurtured relationships.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Rethink_Marketing_Efforts\"><\/span><span style=\"font-weight: 400;\">Rethink Marketing Efforts<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Marketing is a critical component to sell your products, but it can also compound issues with inventory if your forecasts were a bit off or you placed your orders too late. The last thing you want is to successfully drum up interest in your products with clever marketing tactics and then not be able to deliver within a reasonable timeframe.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you run into inventory issues, slow down your marketing to temporarily quell a surge in demand due to your marketing efforts. Save your inventory for your regular orders, and when factories are up again and you can replenish your inventory, resume marketing campaigns.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dates_to_Consider\"><\/span><span style=\"font-weight: 400;\">Dates to Consider<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Chinese New Year is a chaotic time of year for product companies. If you plan ahead, you will experience less disruption. We put together an approximate timeline to summarize the dates you should keep in mind:<\/span><\/p>\n<p><b>November 17th<\/b><span style=\"font-weight: 400;\">: Confirm when your supplier is closing and reopening for the Chinese New Year<\/span><\/p>\n<p><b>December 24th<\/b><span style=\"font-weight: 400;\">: Last day to place an order for delivery before the Chinese New Year<\/span><\/p>\n<p><b>February 4th<\/b><span style=\"font-weight: 400;\">: Some suppliers and subcontractors stop production, causing disruption in the supply chain<\/span><\/p>\n<p><b>February 8th<\/b><span style=\"font-weight: 400;\">: Many workers have already left the factories. Sales reps, engineers and management may still be available for a day or so longer<\/span><\/p>\n<p><b>February 11th<\/b><span style=\"font-weight: 400;\">: All personnel has left the factory<\/span><\/p>\n<p><b>February 12th<\/b><span style=\"font-weight: 400;\">: Chinese New Year<\/span><\/p>\n<p><b>March 1st<\/b><span style=\"font-weight: 400;\">: Most sales reps and engineers are back at work and some factories are back online<\/span><\/p>\n<p><b>March 8th<\/b><span style=\"font-weight: 400;\">: Most factories are operational and production resumes<\/span><\/p>\n<p><b>March 15th<\/b><span style=\"font-weight: 400;\">: Factory operations are back to normal<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Chinese New Year Is Almost Here The Chinese New Year may begin on February 12, 2021 and last until February 26th, 2021, but the holiday isn\u2019t limited to just one week. In fact, people in China celebrate the New Year for a full month, shutting down factories, businesses, restaurants, and shops up to two &#8230; <a title=\"How the Chinese New Year Will Impact Production and What You Can Do Now to Prepare\" class=\"read-more\" href=\"https:\/\/gembah.com\/blog\/how-the-chinese-new-year-will-impact-production\/\" aria-label=\"More on How the Chinese New Year Will Impact Production and What You Can Do Now to Prepare\">Read more<\/a><\/p>\n","protected":false},"author":14,"featured_media":7250,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[4],"tags":[],"topics":[12],"class_list":["post-8936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","topics-manufacturing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.1 (Yoast SEO v23.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Prepare to Keep Chinese New Year From Impacting Production<\/title>\n<meta name=\"description\" content=\"The Chinese New Year will impact production. 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