Spring Festival: The Timing and Planning

How things move before the holiday depend on factors such as, the size of the clients and factories, production process complexity, raw materials and the professionalism of both the factory and the client.

Large factories (and clients) tend to plan early, producing large numbers of “spare” components earlier planning–i.e. build up their inventory. Some small and medium sized factories and importers do the same, but often they are under-managed and ill equipped for this shock. Some large factories make costly mistakes during this period, however: there are stories of large retail stores losing millions of dollars in lost sales due insufficient inventory.

A Typical Process before the Chinese New Year

Well organized factories normally send a notice to their large clients in the early fall, typically after before the national holiday which falls October 1 which asks them to make their final orders which will be dispatched before the Chinese New Year, normally with a warning that orders placed after this time would most likely be dispatched after the holiday.Beware, two main quality pitfalls arise:

  1. Throughout this time, factories are under pressure to make sure that their goods are sent out before the holiday.
  2. At the same time, floor workers are working over-time so they can earn the maximum amount of money possible.

During this time, the factory and the client must put strong quality assurance in place to ensure their quality inspection procedures are tighter than usual. Even repeat order encounter quality issues.

During the New Year

Most of your contacts at the factory should remain reachable (if you are important). Getting quotes and placing orders are still possible. Production for orders will start after the floor workers return. Salespeople often give unrealistic delivery times in order to get your orders. Sometimes, however, it may be because of a lack of coordination with the production planning. Don’t be surprised if you do not get those orders on time.

Most factories spend their time developing new samples,to be promoted next season. Good factories also use this time to put a production plan in place as well as plan their raw material purchasing so that once their workers are back, they can get straight down to business.

During this time, factories pay debtors and creditors so that they can start the New Year on a fresh slate. So when payment requests arrive, you know why.

After the New Year

This time is often most worrisome for management as they must hope a majority of their workers return. Many workers that had worked in the factory do not return. Several factors influence their decision:

  1. Workers are finding more opportunities closer to home and prefer these due to the proximity to their family and friends.
  2. Workers often meet their friends who introduce them to new and more lucrative opportunities which they often take.

Each year factories lose roughly 30% of their blue-collar workforce:  A human resources fiasco. It is a workers market in China now and therefore factories who offer good working conditions, treat their workers fairly, and have higher salaries retain their workers at higher levels and attract new workers easily.


As was noted in the first piece, some workers return after the Lantern festival which means production resumes with a partial workforce. Slow returners, with non-returners means production is not in full swing. The worker problem coupled with the fact that factories have orders piled up during the holiday means delays are expected. (so don’t trust that Salesperson above!)

Factories also need to place their raw material orders with their suppliers, but these suppliers have their own order log and factories dependent on the raw materials cannot start production until they get these materials.

About the author

David writes about economic activity throughout Southeast Asia and specializes on international trade relating to China. In addition, he holds a Masters Degree in Economics from Peking University.
We are using cookies to give you the best experience. You can find out more about which cookies we are using or switch them off in privacy settings.
AcceptPrivacy Settings


  • We use cookies

We use cookies

What Are Cookies

As is common practice with almost all professional websites this site uses cookies, which are tiny files that are downloaded to your computer, to improve your experience. This page describes what information they gather, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored however this may downgrade or ‘break’ certain elements of the sites functionality.

For more general information on cookies see the Wikipedia article on HTTP Cookies.

How We Use Cookies

We use cookies for a variety of reasons detailed below. Unfortunately in most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to this site. It is recommended that you leave on all cookies if you are not sure whether you need them or not in case they are used to provide a service that you use.

Disabling Cookies

You can prevent the setting of cookies by adjusting the settings on your browser (see your browser Help for how to do this). Be aware that disabling cookies will affect the functionality of this and many other websites that you visit. Disabling cookies will usually result in also disabling certain functionality and features of the this site. Therefore it is recommended that you do not disable cookies.

The Cookies We Set

If you create an account with us then we will use cookies for the management of the signup process and general administration. These cookies will usually be deleted when you log out however in some cases they may remain afterwards to remember your site preferences when logged out.

We use cookies when you are logged in so that we can remember this fact. This prevents you from having to log in every single time you visit a new page. These cookies are typically removed or cleared when you log out to ensure that you can only access restricted features and areas when logged in.

This site offers newsletter or email subscription services and cookies may be used to remember if you are already registered and whether to show certain notifications which might only be valid to subscribed/unsubscribed users.

This site offers e-commerce or payment facilities and some cookies are essential to ensure that your order is remembered between pages so that we can process it properly.

From time to time we offer user surveys and questionnaires to provide you with interesting insights, helpful tools, or to understand our user base more accurately. These surveys may use cookies to remember who has already taken part in a survey or to provide you with accurate results after you change pages.

When you submit data to through a form such as those found on contact pages or comment forms cookies may be set to remember your user details for future correspondence.

Third Party Cookies

In some special cases we also use cookies provided by trusted third parties. The following section details which third party cookies you might encounter through this site.

This site uses Google Analytics which is one of the most widespread and trusted analytics solution on the web for helping us to understand how you use the site and ways that we can improve your experience. These cookies may track things such as how long you spend on the site and the pages that you visit so we can continue to produce engaging content.

For more information on Google Analytics cookies, see the official Google Analytics page.

Third party analytics are used to track and measure usage of this site so that we can continue to produce engaging content. These cookies may track things such as how long you spend on the site or pages you visit which helps us to understand how we can improve the site for you.

From time to time we test new features and make subtle changes to the way that the site is delivered. When we are still testing new features these cookies may be used to ensure that you receive a consistent experience whilst on the site whilst ensuring we understand which optimisations our users appreciate the most.

As we sell products it’s important for us to understand statistics about how many of the visitors to our site actually make a purchase and as such this is the kind of data that these cookies will track. This is important to you as it means that we can accurately make business predictions that allow us to monitor our advertising and product costs to ensure the best possible price.

The Google AdSense service we use to serve advertising uses a DoubleClick cookie to serve more relevant ads across the web and limit the number of times that a given ad is shown to you.

For more information on Google AdSense see the official Google AdSense privacy FAQ.

More Information

Hopefully that has clarified things for you and as was previously mentioned if there is something that you aren’t sure whether you need or not it’s usually safer to leave cookies enabled in case it does interact with one of the features you use on our site.

However if you are still looking for more information then you can contact us through one of our preferred contact methods. This Cookies Policy was created with the help of the CookiePolicyGenerator.com

Email: info@intrepidsourcing.com