Chinese New Year 2023, one of our multicultural nation’s major holiday celebrations, welcomes the lunar calendar’s new year. It is a highly-anticipated day for around 22.8% of the ethnic Chinese that makes up the overall Malaysian population, based on Statista’s survey as of July 2022.
Furthermore, Marketing Interactive and Think With Google have shown that many Chinese-Malaysian descents are more than prepared to spend money for CNY shopping every year. For businesses, it is a golden opportunity for more income and profitability because consumers will be eager to show what they have bought to their families during dinner. So, how can you best seize this opportunity?
How to ensure your business is well-prepared for the upcoming Chinese New Year celebration?
Adequate preparation belies every successful strategy, and the same principle applies to e-commerce and brick-and-mortar stores. These business tips will help you tackle the upcoming challenges for the Chinese New Year 2023.
Understand what happens during the holiday period
Before you can concoct a strategy to ensure continuous production and service for the upcoming Lunar New Year, you need to know the operating activities of manufacturers and retailers based in China if you partner with suppliers from there.
Although the Chinese New Year holiday lasts only for around one week in China, factories usually have closed temporarily starting a month before the celebration to reduce costs and give their workers ample time to be with their families. Some manufacturers are still available for business around that time, but they have decreased their operational capacity.
Plan ahead
It is best to strategise ahead months before the holiday to anticipate delayed delivery. Unlike Christmas, the celebration date for Lunar New Year changes every year. When making plans, study past trends this year and make a 6-month forecast based on analysis results. Be sure to communicate your strategy and follow up on your suppliers.
Check your inventory
Once you have made your forecast, you can start ordering your goods before your partnered manufacturers close their doors to prepare for the Chinese New Year. You might be concerned about having dead stock in your warehouse, which may negatively affect your sales. However, the forecast allows you to predict how many consumers will place orders so that you can tailor the number of your purchased products around it.
Have alternatives or backup plans
Your business will remain in its best shape if you can anticipate any worst-case scenarios by creating more than one plan. This alternative plan can include switching a mode of transportation for delivery logistics, such as relying on land transportation instead of sea and air freights. You can also consider allocating your production quota to local retailers or manufacturers in other countries if you have multiple business partners.
Maintain good relationships with your suppliers and manufacturers
Frequent communication is the key to every great business relationship. You should be prepared to follow up with your manufacturers and build a strong relationship with their workers. Small gestures of appreciation are an excellent way to demonstrate your goodwill. Examples include well-wishes greeting cards or the appropriate souvenirs that signify auspiciousness, especially if they come in red and gold.
Preparing your business to face the upcoming Chinese New Year 2023 or any other significant holiday in Malaysia this year will serve you well. Even though you will see reduced production and delayed deliveries during these festivities, having a solid strategy will help you earn more money from people looking forward to holiday shopping.
Although the Chinese New Year period can be difficult for many drop shippers, it is also a good time to scale up your business. That is because if you are well-prepared for this occasion, you will be one step ahead of your competitors.