Industry News

Unveiling the Reasons Behind Year-End Order Reminders in Foreign Trade

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Why do factories have early holidays?

Factories in China typically close early or stop work entirely during the Chinese New Year (Spring Festival) holiday. The Spring Festival is the most important traditional festival in China and is of great importance. The exact date of the Chinese New Year varies each year as it is based on the lunar calendar, but usually falls between January 21st and February 20th.

Here are a few reasons why Chinese factories are closing early for the New Year holiday:

· Cultural Importance: Spring Festival is a time for family reunions and celebrations. At this time, people return to their hometowns to reunite with their families. Chinese workers often miss holidays because they need to rush orders, so their holidays are longer than the seven days of national statutory holidays. This is also a compensatory measure.

· Business slowdown:Many businesses will experience a slowdown in production and trading activity during the Chinese New Year period as customers and suppliers also take vacations. Closing factories allows companies to adjust production plans in response to reduced demand.

· Labor shortage:Labor shortages typically occur during the New Year period as large numbers of workers return to their hometowns for the holidays. Closing factories helps avoid production disruptions due to a lack of workers.

· Government regulations:In some cases, local government authorities may mandate factory closures during Chinese New Year as part of broader efforts to encourage traditional holidays and cultural practices.

Why is the factory late to resume operations?

· Slow return of labor:During the Spring Festival, many workers return to their hometowns, but not all workers return to their workplaces immediately after the holiday. Due to traffic and other reasons, the return of labor may be relatively slow, preventing factories from quickly returning to normal production levels.

· Pre-production preparations:The Spring Festival holiday is usually accompanied by large-scale production interruptions. To ensure safe and efficient production, factories need to carry out a series of preparations, including equipment maintenance, raw material procurement, employee training, etc. These preparations may take some time, delaying the official resumption of production.

Why are shipping costs high and unstable during the Spring Festival?

· Logistics staff shortage:During the Spring Festival, workers in most industries will leave their workplaces and return to their hometowns, resulting in labor shortages. In the logistics and transportation industry, this could lead to a shortage of drivers and warehouse workers, affecting the supply of transportation services. Labor shortages may cause transportation companies to increase service fees.

· Traffic Congestion:During the Spring Festival, traffic is usually congested due to the large movement of people. This increases the time and cost of transporting goods. Logistics companies may need to adjust routes and transportation plans to accommodate traffic conditions, which may result in higher freight rates.

· Concentrated orders:After the Spring Festival, due to the resumption of factories and the explosive growth of market demand, many companies may place concentrated orders. This will cause logistics companies to face a large number of orders and transportation needs in a short period, putting transportation resources in short supply and pushing up freight costs.

Prices are time-sensitive

· The prices of materials required for products will fluctuate at different times, and product prices will also fluctuate.

 

 

 

Why do we recommend customers confirm their orders first?

· Meeting Expectations of Timely Deliveries

Year-end order reminders serve as a reassurance to foreign customers that their orders will be processed promptly, especially considering potential delays caused by the holiday season and factory closures. This proactive communication helps manage expectations and build trust.

When customers miss production deadlines:

· Need to purchase materials in advanceAs a steel door manufacturer, we need to purchase raw materials before we can start manufacturing. If we can estimate the order quantity in advance, it will be very beneficial to our procurement. It is not just about purchasing raw materials. If the customer needs to customize some door accessories, and we cannot have all styles, this also requires our purchasing department to purchase in advance, to ensure that the factory can be put into production quickly after the factory resumes work.

· The factory arranges orders in advanceMany factories will backlog a certain number of orders at the end of the year. If customers can confirm their orders in advance, the factory production department will arrange orders in advance according to the order order, so as not to delay the customer's commercial sales plan.

 

In conclusion, year-end order reminders in foreign trade play a crucial role in solving doubts for foreign customers by offering transparency, addressing concerns related to cultural celebrations and logistical challenges, and fostering collaborative planning. By embracing clear communication, Chinese manufacturers can build trust and strengthen partnerships with their global counterparts, ensuring a positive and informed business relationship.

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