2020 Q4 – Prepare your business in China
For the last quarter of 2020 and the Chinese National Day – China’s most significant national holiday – we have created a brief list of events and holidays, as well as answers to some frequently asked questions: on which dates the Chinese economy is at an almost shut-down, how many days off Chinese employees are entitled to, and how this affects supply chains and the roads across China.
It is to mention that due to the Covid-19, the capacity of operation is already limited, so the national holidays might delay shipments and slow down the business pace even more.
China’s National Holiday + Mid-Autumn Festival – October 1st – 8th, 2020
This year the two holidays fall on the same dates.
China’s Mid-Autumn Festival (Zhōngqiūjié, 中秋节) is the second grandest festival in China after the Chinese New Year. The day is also known as the Moon Festival, as at that time of the year the moon is at its roundest and brightest, symbolizing togetherness and reunion in Chinese culture. One of the most common holiday’s customs is eating “moon cake” (Yuèbǐng, 月饼), a sweet pastry made from wheat or rice flour and sugar.
China’s National Day (Guóqìngjié, 国庆节), is celebrated annually on October 1, commemorating the declaration of the People’s Republic of China in 1949. This festive day is held all across China and Chinese people take a 7-day vacation, also called the “Golden Week”, in which many businesses in China are closed for the holiday and hotel prices soar.
Please note that September 27th and October 9-10th will be working days
The last quarter of the Chinese business world revolves around this holiday. Every year, it is amazing to see how the whole nation goes silent in business, a phenomenon unique to the international business world.
Keep in mind that arrival and delivery times of shipments around the holiday are a bet at best. Therefore, for companies doing business in China, a logistic plan ahead is crucial. Here are some tips to help you prepare and avoid delays, cancellations (and frustration):
Preparing your Supply Chain for the “Golden Week”
- Check carefully all stages of production, shipping and handling of your product against the Chinese calendar.
- Increase orders: ordering sufficient inventory for the entire quarter is highly recommended. By ensuring adequate inventory, any factory closing or delay back to full production after the holiday will have minimal impact on your supply chain.
- Pre-order: place production orders on a much more informed basis – sales forecast and lead-time to ensure shipment before the holiday.
- Make a reservation one week earlier on flight or shipping schedule, especially for exporting from China.
Immediately after the holiday:
- Re-check production schedules: workforce fallout during the holiday and delays in getting back to full production may temporarily affect standard production time.
- Delivery: re-check delivery times, and add 3-4 weeks to your first booking after the holiday.
This year more than ever, PTL Group can support you with Fulfillment and Distribution Services in China, and handle all of your Supply Chain and fulfillment needs.
Whether or not you are in China, or if you are just starting a business in China, we recommend that you welcome employees, partners and colleagues in China, as follows:
- Happy National Day – guó qìng jié kuài lè 国庆节 快乐
- Enjoyable National holiday – huān dù guó qìng 欢度 国庆
- Happy Mid-Autumn Festival – Zhōng qiū kuài lè 中秋快乐
Single’s Day – November 11th – Chinese Single’s Day was founded in the 1990s by college students to celebrate being young and single, and it developed into a major shopping event when Alibaba began to encourage bachelors to buy luxury items and gifts. On this day shopping sites, especially Chinese ones, offer special deals and discounts so that in recent years it has become the world’s biggest shopping holiday.
Businesses interested in taking part in this mass shopping day need to plan ahead. In previous years, products had to arrive at Alibaba warehouses in China by September 1st.
This year as for the corona crisis, many businesses have shifted online, so it is a great opportunity to launch e-commerce platforms and increase sales.
Harbin Ice Festival – December 21st, 2020- February 5th, 2021, or by its full name Harbin International Ice and Snow Sculpture Festival is considered the largest and most impressive ice festival in the world. Every year during the winter, artists from all over the world travel to Harbin to sculpt in ice bricks and compressed snow. Those who come to the city can enjoy a variety of exhibitions, snow sculpture competitions and winter sports activities.
As for June 2020, the festival is still scheduled to take place as planned, clearly without international visitors.