Importers beware and mark your calendars! The Chinese New Year, guided by the lunisolar calendar, shifts annually, and in 2025, the Year of the Snake slithers in on January 29. The official festivities span from January 28 to February 3. Be prepared—some factories might close their doors even earlier, with shutdowns stretching from two to four weeks.
Chinese New Year stands as the pinnacle of celebration in China. The occasion brings families together, as countless factory workers, who are often migrant labourers, embark on long journeys to reunite with their loved ones. To honour this tradition, companies shut down for extended periods.
While most purchases we see at ABCOR are in US $ we are seeing purchases in local currency CNY. This can catch new importers off guard, leading to unexpected hiccups in production, shipping and quality control. If you need guidance on securing the best exchange rates don’t hesitate to reach out to us for assistance. Savvy importers, however, are well-prepared, knowing that factories shut down for weeks and take time to get back to full speed. Fortunately, there are strategic solutions to navigate these obstacles and ensure your operations continue to run seamlessly.
Here are five things you need to know to effectively manage inventory and maintain quality during Chinese New Year:
#1 Plan Ahead for Production Timing
To ensure timely deliveries in March/April, start discussions with suppliers as early as possible. Consider past data and global events to accurately forecast inventory needs and adjust your ordering schedule well in advance.
#2 Quality Issues Spike Around the Holiday
Rushed pre-holiday production and inexperienced post-holiday hires lead to increased quality issues. Enhance your product inspections before and after the Spring Festival, possibly with a trusted third-party inspection service.
#3 Factories Need a Month to Resume Full Production
After Chinese New Year, many workers switch jobs or decide to return to their families in their hometowns, requiring factories to hire and train new staff. This process delays full production for about a month.
#4 Avoid Deposits Before Spring Festival
Many companies go out of business during the Spring Festival. If you pay a deposit before the holiday and the factory shuts down without notice, you could risk losing your money. Wait until they reopen to make payments.
#5 Shipping Costs Surge During Chinese New Year
Factory and shipping company closures lead to increased demand and limited shipping options, driving up costs. Although rates are lower than during the pandemic, Chinese New Year remains the priciest time to ship.