{"id":1307,"date":"2020-12-30T11:53:32","date_gmt":"2020-12-30T11:53:32","guid":{"rendered":"https:\/\/www.goodada.com\/blog\/?p=1307"},"modified":"2020-12-30T11:53:32","modified_gmt":"2020-12-30T11:53:32","slug":"business-tips-for-china-2021-new-year-holidays","status":"publish","type":"post","link":"https:\/\/www.goodada.com\/blog\/business-tips-for-china-2021-new-year-holidays\/","title":{"rendered":"Business Tips for China 2021 New Year Holidays"},"content":{"rendered":"

Business Tips for 2021 China New Year holidays<\/strong><\/span><\/h2>\n

Business Tips for 2021 China New Year holidays \u2013 Thankfully, the year of the Rat will be ending in February 2021 and then it will become the year of the Ox. 2020 has been a significant challenge for many firms who are sourcing from or exporting to China. Covid Lockdowns and the shortage of shipping have made the rat year an unforgettable one in business challenges. This article will offer tips and guidance on reducing the risks of shipping delays or product shortages during the Chinese holiday season. The categories of companies who may be experience Chinese New Year issues are:<\/p>\n

\u00a01. Firms Exporting Goods to China<\/strong><\/h3>\n

\u00a02. Firms Importing Goods from China<\/strong><\/h3>\n

\u00a01. Firms Exporting Goods to China<\/strong><\/span><\/h3>\n

Normally, exporters to China, particularly those who export foods or branded goods, experience a surge in demand for their products. Exporters can face all types of questions from customers and late changes to any orders placed. In 2021, this is expected to be even more challenging as it will be tough to forecast sales for China and offer a transport solution to China which will meet this demand.<\/p>\n

Below are three areas where you might experience issues in the run-up to the Chinese New Year Holidays:<\/p>\n

\u00a01. Increased demands and lack of patience from your buyers in China.<\/em><\/strong><\/span><\/h4>\n

\u00a02. Transporting goods to China.<\/em><\/strong><\/span><\/h4>\n

\u00a03. Getting payment from your buyers in China.<\/em><\/strong><\/span><\/h4>\n

 <\/p>\n

\u00a01. Increased demands and lack of patience from your buyers in China<\/span><\/em><\/strong><\/h4>\n

2020, brought a lockdown, travel restrictions and global recessions. China has been dramatically affected by this. Many factories have experienced a massive fall in international demand for their products. Many importers have faced a fall in orders from the domestic market in China.<\/p>\n

Exporters China are struggling to determine what volumes are required for this market as the pandemic affects the market. The continued growth in eCommerce sales has intensified as people were restricted to their homes due to the pandemic. This increase in eCommerce sales was unplanned by many firms, and logistics companies, which can frustrate the buyers in China who may experience stock-outs or delivery delays.<\/p>\n

In our experience, we have found that China Call Centre services experience a peek demand in Chinese buyers’ calls in the run-up to the holidays.<\/p>\n

The best approaches to supporting your Chinese buyers for the New Year holidays are as follows:<\/p>\n

1. Please discuss with your buyers in China early as possible about their order requirements and delivery dates in the run-up to the Chinese New Year holidays.<\/p>\n

2. Create China eCommerce team plan and put in processes to deal with any surge in eCommerce sales in China. Here is a fascinating China eCommerce article<\/a> <\/span>which I previously wrote.<\/p>\n

3. Bring in additional China customer support cover for your buyers in China. Clients are increasingly using Goodada’s China Call Centre services<\/span><\/a> to provide this extra cover.<\/p>\n

4. Keep an eye on prices and keep updating the costs to your Chinese buyer. It will avoid payment disputes with your buyer in China.<\/p>\n

2. Transporting Goods to China<\/em><\/strong><\/span><\/h4>\n

Goods which are shipped into China<\/em><\/span><\/p>\n

There is currently a massive shortage of shipping containers, and many firms are struggling to get their goods exported to China. The Chinese new year is the 12th<\/sup> of February 2021. It would be best if you were aiming to have the products arrive at the docks in China by the 30th<\/sup> of January 2020. It is a hectic time at the ports in China, so having your goods land into China early will avoid your goods being stuck at the port over the Chinese holiday period.<\/p>\n

Goods which are flown into China<\/em><\/span><\/p>\n

There currently is a massive shortage of airfreight space. The pandemic has all but eliminated passenger aircraft routes which have led to shortages in airfreight. Your relationship with your freight company is very important as they can work hard to find space for your goods. It is not the time to be looking for the lowest price as the challenge is to find space.<\/p>\n

\u00a03. Getting payment from your buyers in China.<\/em><\/strong><\/span><\/h3>\n

A lot of Chinese companies are struggling at the moment. They will also have extra pressures on their cash flow as they need to pay bonuses to their staff, pay tax to the Chinese government and pay any financing costs to shadow lenders. It is strongly advised not to offer any additional payment terms unless your company has credit insurance covering any additional payment terms.<\/p>\n

 <\/p>\n

2. Firms Importing Goods from China<\/strong><\/span><\/h3>\n

The effects of Covid has brought extra pressures to those firms importing products from China. The Chinese New Year Holidays will bring added stress to these firms supply chains in the following areas:<\/p>\n

\u00a01. The Seller in China<\/span><\/em><\/strong><\/h4>\n

\u00a02. The transportation of your goods from China<\/em><\/strong><\/span><\/h4>\n

 <\/p>\n

\u00a0 1. <\/strong>The Seller in China<\/strong><\/span><\/h4>\n

When planning to navigate through the challenge which the Chinese New Year holidays bring to a supply chain, firms need to break the plan into two sections:<\/p>\n

a. The China Seller BEFORE the Chinese New Year Holidays begins.<\/span><\/strong><\/p>\n

b. The China Seller AFTER the Chinese New Year Holidays has ended.<\/span><\/strong><\/p>\n

 <\/p>\n

a. The China Seller BEFORE the Chinese New Year Holidays begins<\/strong><\/span><\/p>\n

During the run-up to the holidays, companies may start to experience issues with their Chinese sellers. These issues can include:<\/p>\n