Impact of the Chinese New Year on Production Processes

Clients Frequently Inquire About How The Chinese New Year (CNY) Affects Production Processes

Drawing from over a decade of experience navigating this unique period, Linton Group offers insights to better understand the production landscape from the end of January to mid-late February each year.

From a factory’s standpoint, the weeks leading up to CNY are a highly competitive time for securing production capacity. Much like the bustling American shopping malls just before Christmas, factories experience a surge in demand starting mid-December, as every client aims to finalize shipments before the CNY shutdown.

Astute clients also vie for priority in the production queue when factories resume operations post-CNY.

This strategy is driven by several factors:

  • Securing production capacity amidst the backlog of demand accumulated over nearly a month.
  • Timing production in mid/late February to align with early summer deliveries.
  • Locking in pre-CNY pricing to mitigate potential price increases after the holiday.

The production sequence typically follows a step-based approach. For instance, in manufacturing a backpack, factories begin by ordering raw materials such as fabric from suppliers.

Once materials are received, they proceed to cut the fabric for the entire order, followed by decorating it with elements like logos and brand artwork. Subsequent steps include sewing, assembly, quality control, and packaging.

In The Context of CNY

It is more practical to pause production between these steps rather than attempting to complete half of the order before CNY and the remainder afterward.

We continually learn and adapt to the unique challenges presented by CNY to serve our clients effectively.

Understanding the production line dynamics during this period can empower our client partners to make informed supply chain decisions.

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