The Chinese New Year (CNY) is a Chinese festival observed during the first quarter of every year.
Each year, factories throughout China halt production so workers have time off to travel home for the celebration. As a result, the CNY has a significant impact on FF&E projects with production in China. To keep your project on schedule, you must be proactive about any furniture, fixtures, and equipment by taking the approach outlined below.
To keep your project on schedule, you must be proactive about any furniture, fixtures, and equipment that you sourced internationally.
Do Your Research
Knowledge is power, and this is especially true when it comes to preparing for the Chinese New Year. Determine which vendors and product categories the celebration is likely to affect. For example, most lighting products originate from China.
Be sure to make a note of all your FF&E items and where their manufacturers are. If you want items to ship before production halts, you must submit your purchase order by the vendor cutoff date, a deadline each vendor sets to warn and minimize delays caused by the CNY. With the proper research, you can factor in the various cutoff dates as you place orders.
It’s essential to submit purchase orders (PO) before your vendor’s cutoff date to receive your items on time. While it may seem like you have plenty of time to place an order before the Chinese New Year begins, there’s often more to the planning process than just releasing a PO.
For example, before you can create a purchase order to send to a manufacturer, you may need to obtain brand approval, which can take some time. If you fail to perform these steps early in the process, there will be a delay in your PO, increasing your chances of missing the CNY cutoff date.
Estimated Timeline: Chinese New Year 2019
November - December: Confirm when vendors are closing and reopening for the celebration
January 22: Production halts and workers start returning home
February 5: Chinese New Year
February 19: Production resumes as workers begin to arrive
March 5: Operations slowly return to normal after the festival
Disclaimer: Many vendors affected by the 2019 Chinese New Year had a November 5th, 2018 cutoff date for receiving purchasing orders.
What to Do If You Miss the Cutoff Date
If you failed to place purchase orders in time for the 2019 Chinese New Year cutoff date, all hope is not lost. Rather than waiting to receive your items after production resumes in China, one alternative is to find a domestic vendor with the same or similar FF&E items.
Domestic suppliers do not halt production in the January-March months. Unfortunately, this can sometimes result in added expenses if domestic production is more costly than the international production. It is also important to note that you will need to submit adjusted purchase orders for brand approval.
Is your project at risk for delays caused by the Chinese New Year? Innvision Hospitality has strong vendor relationships, extensive product knowledge, and logistics expertise to help you navigate the CNY. Contact us today to make sure your FF&E project stays on schedule, regardless of cutoff dates.