Exporter Information for Chinese New Year 2023
Exporter Information for Chinese New Year Holidays 2023 – The Year of the Rabbit. Therefore, the Chinese New Year holidays constantly challenge any company selling products in China. Many can face stress with transport, customs clearance, travel restrictions, price fluctuations and stock management. Incidentally, the 2023 holiday is on 23rd January 2023.
So, I have written this article to help answer some of the questions that exporters to China may have.
So, what type of Challenges will Exporters face for the 2023 Chinese New Year Holidays?
Generally, exporters to China face increased demand and order volumes for their products. This is particularly so for those firms exporting food, beverages or luxury gift items to China. The trick is always to have enough products ready for the expected demand.
Therefore, the challenge is calculating the demand, knowing when to have the stock ready to meet this demand and finally determining the most appropriate logistics solution to move the product to China. Add the ever-changing Covid lockdown requirements in China, and you can see how vital it is to plan early for this coming holiday!
So below are three areas in which your firm might face challenges dues to the 2023 Chinese New Year holidays:
- Almost Impossible Expectations and a lack of understanding from Chinese Importers.
- Sending products to China for the 2023 Chinese New Year Holidays.
- Receiving Payments from Your Customers in China.
Impossible Expectations and a lack of understanding from Chinese Importers
China is still suffering the fallout from the 2020 Covid Pandemic. Even today, the country experiences sudden lockdowns and restrictions on travel. The economy in China is not doing well. Like most other economies, it is starting to feel the chilling effects of a global recession. Hence, importers in China may face the challenge of minimising the amount of stock they need to import to cover their 2023 New Year Holiday demands.
This issue is spreading to too many international firms selling products to China. They are faced with the dilemma of determining how much stock to have ready to meet the 2023 New Year demands from the Chinese market.
Another issue is trying to understand the impact of e-commerce on the 2023 Chinese New Year Sales figures. The challenge here is trying to ensure that firms have quick supply routes. And have sufficient products available to meet any last-minute surge in demand for their goods. This increase in eCommerce sales was unplanned by many firms and logistics companies, which can frustrate buyers in China who may experience stockouts or delivery delays.
And finally, how to address any frustrations with Chinese Importers and Customers. I advise firms to bring in outside China Customer Support services for at least ten weeks to cover potential demand.
This extra service will help cover the increased demand and protect your company’s brand and reputation by providing customers in China with extra customer support services. I would recommend China Customer Support services from Goodada.
Exporter Information for Chinese New Year. My recommended actions which you can use to manage your China customer expectations and lack of patience are:
- Have conversations with your customers in China about their order forecasts for their Chinese New Year sales period. Having these calls as early as possible is crucial so your production teams can place these orders.
- Set up a special team to deal with the extra e-commerce demand that the 2023 China New Year holidays may bring. If you are interested in getting some background information about e-commerce in China, please visit an article I wrote about e-commerce in China.
- Hire extra China Customer Support staff. You can do this in-house or bring in a third-party provider such as Goodada to give you that extra cover. Here is some information about Goodada’s China Call Centre services.
- Keep your direct communications open with your customers in China. It would be best if you informed them in writing about any price changes. It would help if you also received a reply from them acknowledging the changed prices. It will avoid any payment disputes over costs.
Sending products to China for the 2023 Chinese New Year Holidays
Products transported by Sea to China.
Over 2022 there has been an easing in the tight supply of shipping containers. This has also brought down the cost of shipping products to China. In Sep 2021, the average cost to ship a container from China to the West coast of the USA was $20,500. This month, October 2022, the price is down to around $2,740. So the good news for exporters is that they can ship their products to China at an affordable rate. However, exporters should add extra time for processing by customs in China for their products. I recommend you ship your goods to China as soon as possible.
Goods transported by air to China.
Covid has dramatically disrupted airlines’ timetables and their capacity to move stock to China. As China has some of the strictest quarantine requirements for incoming travellers, many are now no longer visiting China. This has forced airlines to scale back their services to China. This has led to a fall in capacity for moving stock to China.
It is, therefore, vital that you keep being updated by your freight provider about any changes to airline capacity and space. It is recommended that you try and secure space as early as possible.
Receiving Payments from Your Customers in China.
Exporters Information for Chinese New Year. Exporters to China will know that 2022 has been a challenging year for the Chinese economy. There was a lot of credit was moving within the Chinese economy. As credit is drying up in China, the cash flow of many Chinese firms is starting to be challenged.
Coming up to the 2023 China New year holidays, many Chinese firms have to pay extra staff bonuses and tax payments to the Chinese government. Chinese firms will ask many exporters to provide credit or additional credit terms. I would strongly advise exporters to avoid changing their payment arrangements with their customers in China during the Chinese New Year holidays. The risk of non-payment is too high for the exporter.
Exporters Information for Chinese New Year 2023 *Tips*
- Clarify with your customer the dates that they want your goods to be landed in China. Then, if possible, you should aim to have the goods in China up to three weeks before this date.
- Request that your freight forwarder email you with updated freight availability and prices. Also, ask them to advise you of any lockdowns at any ports in China.
- Request that your customers in China settle any outstanding payments before 20th January 2023.
- Increase your China Customer Support team for the China New Year Holidays. It would help if you considered third-party providers such as s Goodada’s China Call Centre Services to bring in the extra customer support.
So, Exporters Information for Chinese New Year Holidays 2023
Aidan Conaty is the founder of TCI China and Goodada.com. Aidan has spent over 15 years assisting companies to trade internationally. He founded Goodada, which helps companies to trade internationally.
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