China 2024 New Year Sourcing Tips: Navigating the Year of the Dragon
The Chinese New Year 2024, also known as the Year of the Dragon, is fast approaching. For businesses sourcing goods from China, this festive period can be a challenging time. From logistics and customs clearance to potential health-related travel restrictions and fluctuating product prices, the supply chain can face multiple disruptions. With the New Year’s date set for 10th February 2024, preparation is key.
In this guide, we’ll delve into essential sourcing tips for the China 2024 New Year holidays and how to overcome common challenges.
Key Areas to Focus On:
- Engaging with Chinese Suppliers
- Ensuring Smooth Product Movement from China
Engaging with Chinese Suppliers
To mitigate the impact of the Chinese New Year on your supply chain, it’s crucial to segment your strategy:
- Pre-Chinese New Year Preparations: As the 2024 festivities are near, be vigilant. International buyers might face challenges such as declining product quality, reduced supplier flexibility, unexpected credit term alterations, and last-minute price hikes.
- Post-Chinese New Year Adjustments: After the holidays, recalibrate your approach based on the current market and supplier conditions.
Why Does the Chinese New Year Impact Supply?
Understanding the root causes of supply disruptions during the Chinese New Year holidays can help businesses strategize effectively:
- Contractual Changes & Quality: Many Chinese workers transition to new jobs post-holidays, potentially affecting product quality.
- Bonus-Related Product Defects: Dissatisfaction with bonuses can lead to the intentional production of subpar goods.
- Payment Term Alterations: Suppliers might modify payment terms due to holiday-related expenses.
- Subcontracting Risks: Overburdened factories might delegate production, compromising quality.
- Price Inflation: Some suppliers might exploit the pre-holiday rush to inflate prices.
Overcoming Order Delays from China
Delays are common during the Chinese New Year. Factors include staffing challenges, extended production times, and uncertainties in 2024 pricing due to fluctuating costs and restrictions.
Pro Tips for the 2024 Chinese New Year:
- Plan Ahead: Mark 20th January to 28th February 2024 on your calendar.
- Boost Inventory: Maintain a 12-week stock from 10th February 2024.
- Diversify Suppliers: Consider orders from suppliers outside China.
- Ship Early: Aim for at least a four-week buffer before the holidays.
- Quality Control: Engage Third-Party QC firms like Goodada Inspection Services for quality assurance.
So, Chinese New Year Holidays 2024 – Sourcing Tips
Aidan Conaty is a director of TCI China and Goodada Inspections.
He can be contacted by email at aidan@goodada.com or be reached at:
- (Europe/ Rest of the World) +353 1 885 3919;
- (UK) +44.020.3287.2990
- (North America) +1.518.290.6604