Preparing Your Business For Lunar New Year
Shutdowns and increased spending can both have implications for businesses across the globe. Here’s what to expect during the celebrations this year.
The year of the Tiger is set to begin with the annual 16-day celebration on February 1st.
While there are numerous celebrations and traditions associated with this annual holiday including travel, feasting, and spending time with family, a few traditions have implications that reach far and wide for months to come.
What to Know to Prepare For Lunar New Year
Supply Chain Implications
The Lunar New Year is a traditional celebration welcoming the lunisolar new year according to the lunar calendar. As a result, companies and factories across the country shut down to allow for their employees to travel home to their families to celebrate. While this public holiday results in seven “official” days off for employees, we can expect to see businesses shut down for two weeks or more.
These shutdowns not only affect businesses in countries that celebrate Lunar New Year (China, Indonesia, Malaysia, North Korea, Singapore, South Korea, Vietnam, and Brunei) but all of us who rely on goods produced in these Asian countries.
The international supply chain is already seeing mass delays and the Lunar New Year is expected to further exacerbate these interruptions. While you may already be seeking alternate supplies closer to home because of the ongoing pandemic-related supply chain issues, it’s important to properly prepare your business for further interruptions.
While the approach for each industry and business is unique, all businesses should be aware of their supply chain. Understanding where your supplies are manufactured and whether or not these factories are closing in honor of the holiday will help you when Lunar New Year comes around. You can prepare for these shortages resulting from the shut downs by ordering extra supplies or by looking elsewhere for inventory. Especially now, given the current state of the supply chain, sourcing products domestically will shorten lead times and enable you to better manage expectations.
The Spending Power of Asian Consumers
Aside from the supply chain implications of Lunar New Year, this holiday can have pretty positive effects on international spending. Like the holiday season in the US, predominantly between Thanksgiving and New Years, Lunar New Year involves gift-giving and celebrating — both associated with spending.
In 2021, despite the pandemic, consumers spent about $127 billion during the Lunar New Year celebrations. Consumers in China have become increasingly known for their appreciation for high-quality, luxury products — and they are willing to spend huge amounts of money on them during the holidays.
Though Lunar New Year is deeply rooted in tradition, many brands have realized the potential of the event as a commercialized holiday. Though some brands specifically design items to target Asian consumers, a less risky approach would simply be to target Asian consumers in marketing campaigns. As previously stated, Asian consumers have huge spending power, especially during this annual celebration. But, it’s possible to capitalize on that without appropriating the Asian styles and symbols associated with the holiday.
Pockyt Connects You With Asian Consumers
Pockyt connects businesses with Asian super apps, including WeChat and Alipay by providing fully-funded in-app marketing opportunities. This means you can reach the billions of Asian consumers on these apps — during Lunar New Year and beyond. By leveraging the in-app marketing opportunities during this time of year businesses will be able to tap into the billions of dollars being spent to celebrate Lunar New Year.
Learn more about the ways Pockyt can help your business during this Lunar New Year and beyond by contacting our team today.