What the Chinese New Year Means to Your Supplier

It’s the most important Chinese holiday of the year and one your supplier is likely looking forward to with great anticipation – Chinese New Year.

The Chinese New Year, known as Spring Festival in China, marks the beginning of the Chinese calendar year, the end of winter, and the first solar term of the Chinese year. This momentous cultural occasion is celebrated with festival that begins on the first day of the first month in the New Year and ends on the 15th day of the year. During this time, migrant workers return home and gather for huge family reunions during which they catch up, feast, and wish each other peace and happiness.

Given China’s significant internal travelers, special arrangements are made with the area’s various methods of transportation, including buses, railways, and airlines, beginning two weeks before the holidays. This time period is called “chunyun,” which literally means “transportation during Spring Festival.” It is the world’s largest annual migration, and it could impact your company’s bottom line if you’re unprepared.

Given the massive relocation of its people, traveling to China during its New Year can be a fruitless endeavor. Suppliers may be difficult to reach or completely inaccessible beginning two weeks prior to the holiday as their workforces head home. During the Chinese New Year, many offices will be closed. Factories may operate on different time schedules -- closing early in the day and reopening much later than usual. Some may even close the week before the New Year and remain closed for the duration of February.

If your company is reliant on Chinese suppliers, you need a plan to ensure your business continues to operate during the holiday.

Mawson Global, a leader in global sourcing, can work with your organization and its Chinese providers to ensure everyone is on the same schedule during the holiday season. The Mawson Global team understands the importance of this holiday to Asian suppliers, and it can help your organization avoid delays and disruptions to its business before, during, and after the Chinese New Year.

The Western holiday season may be over, but for our Eastern friends, the celebrations are just around the corner. This year, the festivities kick off right at the end of January. Make sure your suppliers can celebrate one of their favorite times of year and your business continues to run smoothly during the month February – contact Mawson Global for assistance with your global sourcing, marketing, and commerce solutions.

Sourcing From China on the Rise

As global economic indicators have shown incremental improvement over the past several months, it could also point to a positive position for Chinese manufacturers and service providers. According to the most recent International Sourcing Confidence Index, confidence from multinational companies that source products from China increased in the third quarter, up from 50.40 to 51.28, according to the Shanghai International Sourcing Promotion Group Co.

The Index is a measure of the confidence that multinational companies feel with regards to sourcing products in China. The survey interviewed more than 200 multinational companies that have a presence in China. A reading above 50 indicates optimism, and the third-quarter index represents the highest mark in a number of quarters. The index’s improvement also indicates that the global market might be inclined to source more products from China.

According to the most recent trade information, exports from China grew to 7.2% in August, up from 5.1% in July.

With four experienced individuals staffing our office in Qingdao, China, Mawson Global is strategically positioned to help companies and organizations of all sizes and disciplines to identify and acquire the most cost-effective suppliers of products and services in the Chinese market.

Because we have a team on the ground in China, we’re able to minimise the risks associated with global sourcing and help your company make the most out of global sourcing its products. Our team members are knowledgeable about international standards, and understand local languages and cultures. Having a team in China also means that Mawson Global can quickly identify suppliers that meet your quality standards, and provide you with a partner with whom you can cultivate a long-term relationship.

There are a number of reasons to partner with Mawson Global for your global sourcing needs, including:

• We are a global leader in product sourcing with more than 70 years of family experience.

• Small and medium enterprises get Fortune 500 sourcing expertise for a fraction of the cost.

• Mawson Global identifies high-quality suppliers that you can build a long-term relationship with.

• These relationships enable your company or organization to become a key player in the global market.

• Sourcing through Mawson Global will keep you ahead of your competition.

• Partnering with Mawson Global helps your company slash costs and increase your profit.

For more information on how Mawson Global can help you join the global arena, please take our 10 Product Challenge or contact us.

What the Chinese New Year Means to Your Supplier

It’s the most important Chinese holiday of the year and one your supplier is likely looking forward to with great anticipation – Chinese New Year.

The Chinese New Year, known as Spring Festival in China, marks the beginning of the Chinese calendar year, the end of winter, and the first solar term of the Chinese year. This momentous cultural occasion is celebrated with festival that begins on the first day of the first month in the New Year and ends on the 15^th day of the year. During this time, migrant workers return home and gather for huge family reunions during which they catch up, feast, and wish each other peace and happiness.

Given China’s significant internal travelers, special arrangements are made with the area’s various methods of transportation, including buses, railways, and airlines, beginning two weeks before the holidays. This time period is called “chunyun,” which literally means “transportation during Spring Festival.” It is the world’s largest annual migration, and it could impact your company’s bottom line if you’re unprepared.

Given the massive relocation of its people, traveling to China during its New Year can be a fruitless endeavor. Suppliers may be difficult to reach or completely inaccessible beginning two weeks prior to the holiday as their workforces head home. During the Chinese New Year, many offices will be closed. Factories may operate on different time schedules -- closing early in the day and reopening much later than usual. Some may even close the week before the New Year and remain closed for the duration of February.

If your company is reliant on Chinese suppliers, you need a plan to ensure your business continues to operate during the holiday.

Mawson Global, a leader in global sourcing, can work with your organization and its Chinese providers to ensure everyone is on the same schedule during the holiday season. The Mawson Global team understands the importance of this holiday to Asian suppliers, and it can help your organization avoid delays and disruptions to its business before, during, and after the Chinese New Year.

The Western holiday season may be over, but for our Eastern friends, the celebrations are just around the corner. This year, the festivities kick off on Feb. 10. Make sure your suppliers can celebrate one of their favorite times of year and your business continues to run smoothly during the month February – contact Mawson Global for assistance with your global sourcing, marketing, and commerce solutions.

What Does China's New Leadership Mean for Your Business?

With the successful transition to new leadership in November, mid-size global companies trading with China have been carefully assessing what the new leadership means for them. The simple answer is, in the short-term, there will be little impact because the new leaders want policy continuity and stability. In the long run, companies buying from and selling to China may need to find partners that focus on innovation, efficiency, and productivity improvement in the face of a changing macro environment.

The new state president of China, Xi Jinping, has lived through personal hardships and governed from the grassroots at every level of the Chinese government.  He is a down-to-earth, pro-business, and pro-market person who favors innovations and new ideas. He is known to connect well with Chinese society at large. He is also expected not to change policies radically, but to experiment with changes at the grassroots level first.

To maintain continuity and stability, the new Chinese government will follow a similar pro-growth strategy while tackling the problem of rising income inequality. In the past 12 years, labor costs in China have risen 10 to 20% a year. While exact productivity numbers are hard to determine, China has experienced a considerable productivity growth due to urbanization and an inflow of foreign investment and technology. Traditionally, Chinese workers have been flexible in adapting to the rapidly changing environment. With the new leadership’s emphasis on innovation and technology, productivity gains should continue to offset wage increases, just as in the past.

The implication for mid-size businesses is that they must partner with companies that focus on improving productivity. According to a recent Ernst & Young survey, to offset the slowdown in profitability due to slowing global growth and rising costs, companies need to pursue productivity as a strategic goal. This means that while understanding the national policy direction is important, finding a business partner that focuses on improving efficiency is even more crucial. 

China’s determination to fight corruption, reduce bureaucracy, and extravagance should benefit Western companies, especially those in countries which uphold stricter business standards. State President Xi had been a governor in three dynamic regions in China. This may point towards more government support for smaller businesses, allowing mid-size foreign companies to locate better partners in China.

As China seeks to re-balance growth away from investment to domestic consumption, some slowdown in growth is inevitable. Mid-size businesses trading with China are well advised to seek business partners who will focus on increasing productivity to offset the expected growth slowdown and rising operating costs.

Mawson Global has on the ground experience in supply partner selection which will allow you to concentrate on making productivity gains in your own business.

Quality Sourcing Tips –Tips for China Product Sourcing

If you are buying product from China or planning to have your product manufactured in China, take the following steps to ensure you get good quality from China. This strategy is best for hands on buyers who require a certain quality standard.

1. Qualify New Suppliers – perform background checks and make sure you know who is really making your product. This should also include audits on the factories and an evaluation of the new suppliers to make sure they fit your business model. If you are sourcing small orders, the largest factory may not be your best fit.
2. Review the Purchasing Method – make sure the contract has fair terms and conditions. Some Chinese suppliers are not motivated by your next order, so your leverage is the money you still owe them.
3. Perform Quality Control – prior to placing an order, take the time to define precisely what you need and expect to receive. Do not overlook describing limits and tolerances. Furthermore, perform regular product quality inspections. This should be done before and during production as well as prior to shipment.
4. Create a Buyer-Supplier Relationship – make promises with your suppliers and keep them!  As long as your buyer-supplier relationship is good, don’t bounce around to save a few pennies. In China, business is often performed face-to-face, so rather than cultivating these relationships via email or the phone, take the time to travel and have personal meetings with your suppliers.

Sourcing can be a daunting task, but with a little patience and the desire to form a lasting relationship with your manufacturing partner, it is a great way to save your business money. What other tips do you have for having a successful relationship with new suppliers in China?