What’s with the Tiger?
“What’s with the Tiger?” Like every other Chinese New Year, it arrives with a Zodiac/Lunar sign that represents the year. This coming 2022 Chinese New Year is the Year of the Tiger.
The past year-and-a-half has been a roller-coaster of changes - from business to personal issues - we’re all dealing with the same things. The impact of the pandemic on traditional buying habits has been significant and possibly permanent. The increasing costs of raw materials, labor and shipping has gone crazy high. We are all standing on shifting sand (if you’re unfamiliar with that phrase, it means the ground we stand on changes so often that it is difficult to deal with). Unfortunately, some companies have been unable to stand, and have failed. This doesn’t have to be though. Remember, it’s easier to stand when you’re holding on to something….
You aren’t alone. The LUMI team is here to help you. From product information to after sale support, we have the experienced staff to give you hand. Want to know what products you should add that will help grow your sales? Talk to us. Need a new product manufactured from an idea you’ve had? We’re here. We will always do our very best to help you. Grab on, we’re here to help you.
CNY = Preplan
If you are able to forecast how much product you will need for the first three to four months of next year, you will be much better off in your inventory planning. With about a month of shutdown on manufacturing and shipping, this could be a disaster for your business if you don’t plan ahead. Don’t forget that businesses are rushing manufacturers to produce and ship before the holiday, which causes a major spike in volume. This in turn, also means a big spike in import volume when it reaches the ports. What does this really mean though?
To properly plan for Chinese New Year, businesses have adjusted import volumes to match projected inventory, as if there will be no product coming in during the month immediately after the holiday. For example, Chinese New Year is on February 1st, 2022. Therefore, factories will normally restart at the end of the month and goods being held at the port prior to CNY would begin shipping around February 22nd. As you can see, we are already into March.
Also, containers have a high chance of getting rolled over to the next booking in the weeks leading up to CNY. It is well known that shipping companies take advantage of the Chinese New Year situation, since everyone needs their cargo to leave port before everything shuts down. The priority will go to those who prepare ahead of time, and for those willing to shell out on the higher rates, which we are already experiencing some of the highest rates in recent times.
After Chinese New Year
If your production didn’t make the cut-off prior to CNY, it will resume as soon as things re-open and work begins again. Something to consider though, not all employees will come back to work! There could be further delays if there happens to be a labor shortage – which always happens.
Also, if your product reached port, but not in time to get on a cargo ship, it would then start moving on the water - when it’s your turn. We’ve seen the highest number of container ships being held in ports around the world, adding additional time for product to get from point A to B. So after CNY, destination ports will have another influx of containers coming in. In other words, there will be a big rush before and after the holiday.
Grab that tiger by the tail, let LUMI help you through the next few months as we plan ahead for the coming Chinese New Year.
Finally, just for the fun of it, are you a Tiger?
People born in the year of the Tiger are brave, competitive, unpredictable, and confident. They are very charming and well-liked by others. The Years of the Tiger include 1914, 1926, 1938, 1950, 1962, 1974, 1986, 1998, 2010, 2022, 2034... Tigers, considered to be brave, cruel, forceful, and terrifying, are the symbol of power and lordliness in Chinese culture. If you’re curious about what famous people are Tigers, you can visit this site, you’ll find Tom Cruise, Richard Branson, Jiang Zemen, David Attenborough - even the Queen of England are all notable Tigers.
Approaching the end of the year we are all looking to the 4th Quarter and the positive impact that Holiday sales deliver to our businesses. At LUMI, we’ve been busy manufacturing, testing products, filling orders, shipping and then doing it over and over again. LUMI is a planning company. We try to anticipate, solve problems, plan and implement programs that we believe help our customers to sell more efficiently and effectively - making business more sustainable and reliable.
Contact your LUMI Representative today to get the ball rolling for the upcoming months ahead. Any suggestions or comments are always welcome at firstname.lastname@example.org