How to Avoid Exporting Problems to China during its 2020 New Year Holidays
How to Avoid Exporting Problems to China 2020 New Year Holidays – China will celebrate its New Year holidays on 25th January 2020, which will be the year of the Rat. Chinese New Year holidays involve the most significant movement of people on the earth at any one time. In 2018 it was estimated that over 385 million people travelled back to visit their families in rural parts of China.
Chinese New Year celebrations are now becoming big business for foreign companies who export products such as clothing, foods & beverages to China. The reason for this is that China’s middle class of 400 million people in China have the extra income to splurge on luxury foreign products. However, for most companies who are selling into China, this time of year can bring a lot of stress across their China Supply Chain.
Overview – How to Avoid Problems Exporting to China during its 2020 New Year Holidays
One of the most common issues which can occur during this time is stress. With increased demand and delivery deadlines, you may notice that your customers in China may become more agitated or demanding on you and your company. Best practices say to prepare for the worst and hope for the best. Be prepared to have late requests for changes to placed orders and expect all types of unusual questions to be asked by the customer in China.
Below are three areas where you might experience issues in the run-up to the Chinese New Year Holidays:
1. Increased demands and lack of patience from your customers in China.
2. China Transport and Customs clearance of your product.
3. Getting payment from your buyers in China.
1. Increased demands and lack of patience from your customers in China
It is a hectic time for our clients, especially those who use us as their outsourced China Call Centre services provider. We experience peak demand in calls from Chinese buyers in the run-up to the holidays.
Some of your customers in China, especially those who have little experience or market knowledge, may not have any purchasing history to base their Chinese New Year orders on. This means that they will expect you as their supplier to have products ready and available for shipment out to China when they request it. Tensions can rise to surface between you and your customer in China, because the customer may not fully understand the production processes and stocking levels while you make not understand the importance of the Chinese New Year holidays in terms of their business.
2. China Transport and Customs clearance of your product
Goods sent to China by ship
For goods which are shipped to China, you should be aiming to have the goods land into the ports in China by early January 2020. It is a hectic time at the ports in China, so having your goods land early into China can avoid your goods being stuck at the port over the Chinese holiday period.
Goods sent to China by plane.
Space becomes very tight on airlines for goods being transited to China. You must use a logistics company who has the ability to get you space on a plane. It will be your working relationship with your logistics company which will ensure they will prevent your goods from being left behind at the departure airport.
3. Getting payment from your buyers in China.
It is a significant risk to change your terms of payment with the customer in China, especially in the run-up to the Chinese New Year holidays.
This time of year buyers in China has extra demands on their cash flow as they need to pay additional wages to their staff, pay tax to the Chinese government and pay any financing costs to shadow lenders. Some buyers in China, unable to pay for the products which they purchase, might ask for payment terms or payment extension periods, unknowingly that they are unable to pay you when the payment terms fall due.
Tips – How to Avoid Problems Exporting to China during its 2020 New Year Holidays
1. Confirm with the customer in China they dates which the customers want to have their goods, then reduce the time by ten days to build in slack for any delays.
2. Increase communication with your freight forwarder over this period. Focus in on delivery times, available space and any changes to freight prices.
3. Ensure that payments are received from customers in China 10 days before the holidays. Banks are closed, and sometimes buyers don’t reopen after the holidays!
4. Outsource the services of a Call Centre company based in China such as Goodada’s China Call Centre Services to provide additional customer during these busy times.
5. Commence discussions with the customer from late September 2019, product dependent, about their order requirements and delivery dates in the run-up to the Chinese New Year holidays.
6. Bring in additional China customer support cover for your buyers in China. Goodada’s China Call Centre services are increasingly being used by clients to provide this extra cover.
7. Keep communicating with your customer in China about any changes to prices the prices of the products. It will reduce the likelihood of any payment or price disputes with the customer.
About the author – How to Avoid Problems Exporting to China during its 2020 New Year Holidays
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 email at aidan@goodada.com or be contacted at:
Europe/ Rest of the World – +353 1 885 3919;
UK – +44.020.3287.2990
North America – +1.518.290.6604