Events tend to trigger increases in demand in certain sectors, such as Black Friday, Cyber Monday, or Christmas. All these holidays take place over short periods and create busy seasons for shipping and operations.
During these busy seasons, managers must think ahead and prepare their businesses for changes in demand. In Hong Kong, the busiest season in this regard is Chinese New Year.
What is Chinese New Year?
Chinese New Year, also known as CNY, is an important annual celebration of Chinese culture. It marks the beginning of a new year according to the traditional Chinese calendar and is generally celebrated in late January or early February. The date of Chinese New Year varies each year according to the lunar calendar and is determined by the cyclical phases of the moon. Traditionally, this period was used by people to go hunting and prepare for the year ahead.
Today, Chinese New Year is celebrated in many countries around the world with festivals and parades. Chinese New Year's Eve is considered an important day for completing household chores and outstanding tasks, as well as settling debts before entering a new year. On Chinese New Year's Eve, families gather for dinner to celebrate, and children receive red envelopes filled with money from their relatives. During this period, people wear new clothes, set off firecrackers, exchange gifts, attend dragon and lion dances in public squares and parks, and gather with their families.
When does Chinese New Year take place?
Chinese New Year is celebrated on the first day of the Lunar New Year by billions of people, and it is a period when many people anticipate the festivities. E-commerce businesses, particularly dropshipping businesses, can be greatly affected by this period. Delivery times become longer at this time because many businesses close to allow their employees to return home. This is why the days leading up to Chinese New Year are highly pressured. The priority is to ship all products out of the ports before the country closes down. This can lead to increased freight costs and longer transit times in the event of delays at the port. As a result, many customers are likely to receive their goods late.
Although customers who choose to order directly from China expect long delivery times because of the geographical distance, the Chinese New Year festivities should not extend delivery times further.
It is therefore important for businesses to plan, ensure that they have sufficient stock before Chinese New Year, and adhere to shipping schedules so that their customers are not deprived of the products they want. Ultimately, businesses can remain successful during this period if they plan accordingly and make sure to order products from China in advance.
What happens during this period?
During Chinese New Year (CNY), people in mainland China tend to celebrate for around 20 days. Business in China simply comes to a halt. A complete blackout, literally. Students enjoy a month-long winter break, while working adults have 7 days off. Business generally resumes on the eighth day of the festival, with "8" being considered an auspicious number in Chinese culture. For B2B organizations, this means a drop in revenue because most people take a day off to spend time with their families. The festival extends well beyond mainland China, reaching Singapore, where the Chinese population is the majority. The celebration in Singapore lasts 15 days, with the first two days designated as public holidays. Large companies begin operating from the third day, but many Chinese-owned businesses will probably remain closed longer, as this is their only break of the year.
Read on to find all our tips for keeping your business afloat.
What strategy should you adopt in e-commerce during Chinese New Year?
Chinese New Year is an excellent opportunity to grow your e-commerce business. It is important to adopt the right strategy to take advantage of the benefits of this period and grow your business.
How? First of all, you can start by stocking up on products or determining which products may be of interest during this particular period.
Dropshipping is also an excellent option because it allows you to sell products without having to store them; researching websites is therefore the best way to do so. Finding new suppliers and optimizing SEO are other strategies that can be used to reach more customers and increase sales during this period. Every business has different opportunities, so it is important to assess what works best for you and your customers.
The holidays during this period mean that customer demand may be higher, so taking advantage of this opportunity can help your business grow exponentially.
In conclusion, Chinese New Year offers many different opportunities for e-commerce businesses looking to increase their profits. It is therefore important to adopt the right strategy to make the most of this period and minimize the impact of Chinese New Year as much as possible.
The role of Merritt Asia
Our firm has been present in Hong Kong since 1998, when we incorporated our first company. We are ready to help you achieve your goals, and our firm can assist you with your accounting or act as company secretary for your business.
For more information, please do not hesitate to contact us at
support@merritt.group.
