It is important to focus on key Chinese cultural concepts and their impact on business operations. Global Business Culture runs China cultural awareness programs. We always focus on core issues like how important is ‘face’, what a hierarchical mindset has on information flow, decision-making, and why deep, lasting relationships are crucial to your success.
What are your competitive advantages in a China market perspective? Are your prices competitive Are you able to offer lower prices to compete with local businesses? Or does your “foreign” product allow for price increases? Your product might be able to command a premium because of its uniqueness or market appeal. These questions are important regardless of the outcome. This, along with a cost structure that is correct, will determine your success or failure.
It is important to conduct thorough research. Do not try to pinch pennies at this stage. It is a huge false economy. China research is not limited to desk-top. You must get out in the field and work with local advisors who understand your goals and will tell you the truth.
Be adventurous and experimental.
Water Tigers are open to new ideas. This is the year to make a change in any area of your life. Start small by listening to new music, taking up a hobby, or starting a new project at your job. You’ll soon find yourself more confident as you make larger life decisions.
Being open to new ways of doing business can make you more successful and independent in finances. E-wallets can make a big difference in the world of finance. ShopeePay is Shopee’s all in one e-wallet. It allows you to load, pay bills and send money. You can also scan to pay at thousands nationwide merchants. Enrollment is easy and takes only a few minutes. You can activate your ShopeePay account by clicking.
Guanxi = Networking is base of buiness in China never forget that explained the Chinese business Club.
Flexibility is the key to success.
Water Tigers are able to quickly adapt to their situations, making them great role models in a time of unprecedented change. Entrepreneurs need to be more strategic and creative in order to keep their businesses thriving. ShopeePay’s expanding list of Offline Partner Merchants is available to you if you have a physical shop. This will allow for cashless transactions and safe transactions. ShopeePay’s Scan to-Pay feature allows you to make secure, real-time payments in-store for goods and services by scanning a QR code. ShopeePay offers many benefits. Sign up to become a ShopeePay partner merchant. Fund transfers may be your main method of payment if you are an online merchant. ShopeePay offers real-time money transfers and free of charge to all Shopee users or bank accounts.
Resources can make a big difference in your life.
Water Tigers are resourceful, which means they can find solutions to problems and search for better ways to do a job. This is one of the most valuable traits you can imbibe in money matters. A good financial decision-maker will weigh the options and seek out ways to save money and spend more. Explore your e-wallet’s capabilities and keep track of ongoing promotions and specials.
Solve the distribution problem
China can be difficult to access due to the lack of local distribution networks, the buying habits of local consumers, and regulatory requirements
SITUATION IN 2022
Residents will be allowed to travel between provinces in 2022 CNY as long as they have green travel codes and health codes. There will be no home quarantine or mandatory testing. However, the situation will still depend on local policies and whether there are any outbreaks in your destination.
After reporting its first Omicron case, Beijing has been increasing inbound travel restrictions. People traveling to Beijing or returning from Beijing must have a negative nucleic acids test certificate for the past 48 hours. They also need to show a green code on the “Beijing Jiankang Bao APP.” Except for commuters, all people who travel to Beijing or return to Beijing will need to perform another nucleic acids test within 72 hours.
It is a good idea to check the COVID-19 requirements and confirm your travel plans with local authorities before you leave for cross-regional events.
The highly transmissible Omicron variant was reported in at least nine cities within six province-level regions, including Beijing, Tianjin and Shanghai. This has led to large and small lockdowns as well as control measures. Many business and citizens are now cautiously awaiting the onset of an outbreak to disrupt their plans for travel.
China State Railway Group, a state-owned railway passenger- and cargo transport services entity, has estimated that passenger travel via railways will exceed 280 million in the 40-day travel period (January 27 to February 25, 2022). This is an increase of 28.5 percent compared to last year. China State Railway Group estimated that there were 407 million passenger trips last year. However, the actual number was only 218 millions.
Public encouraged to celebrate at place
29 Chinese cities and provinces have encouraged citizens to “Celebrate in Place”. They are facing the challenges of fighting both Omicron and Delta variants of COVID-19. To retain staff during the holiday, many local governments have implemented policies such as red envelopes, subsidy, and consumption vouchers.
What trends are expected for this year’s Spring Festival?
Holiday consumption and a stay-at-home economy
Omicron, a highly contagious variant of the Omicron virus, and China’s zero Covid strategy may cause holiday spending to be cut again. However, there may be other business opportunities such as the stay-at home economy. In Chinese, the CNY holiday was a time when locals would visit their relatives and friends to bring them gifts, known as Nianhuo.
This year, however, people will be encouraged to spend less on gifts and more money for their own rewards. Personal care, apparel, as well as electronic products will all benefit. Website traffic may increase on streaming and e-commerce platforms.
There are expectations that government support will increase consumption
China’s recent economic slowdown has been caused by problems in the property market, and slow consumer spending. In recent months, both imports and retail sales growth rates have been lower than expected.
The country’s top economic planner, has some suggestions for how to increase spending during the Spring Festival holiday. These include upgrading online consumption and boosting rural consumption.
Despite the challenges that exist, the Spring Festival shopping frenzy could still provide some unique opportunities for foreign brands to gain footholds in China’s vast market.
What are the expected restrictions on international travel and disruptions to supply chains during the 2022 CNY
Beijing is intensifying its efforts to stop the import of COVID-positive cases from overseas due to the increase in COVID infections around the world, the upcoming CNY holiday, and the 2022 Winter Olympics.
Announcements about travel to China for Business
The Civil Aviation Administration of China has suspended 182 international flights from January 1-12, including nine between China and the USA. On January 7, 2022, the Chinese Embassy in the US stated that all passengers traveling to China from the US must remain in the US city of departure for seven days in order to be subject to health monitoring and COVID-19 screenings before they can board the China-bound flight.
Port restrictions and ongoing epidemiological surveillance
Beijing called on local governments in December to improve prevention and control measures within port cities, as well as epidemic surveillance and early warning systems. Truck drivers are unable to transport cargo from factories to ships due to COVID testing in many port cities including Ningbo and Shenzhen. This has caused disruptions in supply chains.
Epidemic crisis in 2022
The Omicron variant has been confirmed in Mainland China. This raises concerns among global exporters, manufacturers, and shipping companies about China’s refusal to allow ships to berth. Companies should be aware of the situation and prepare for delays in global supply chains already stretched by the virus and CNY holiday.
Traditional business closings
Normaly, factories and suppliers prepare for a seasonal slowdown prior to the CNY holiday. CNY is a seven-day holiday, but many factories will be closed for longer periods to allow workers to return home. This is because factory workers are often at high risk of losing their jobs as they receive their bonus before the CNY.
2022 could be a little different. Employers may use domestic travel restrictions and local government policies in order to keep factories open instead of closing down for the holidays. This could help to reduce severe disruptions in the supply chain.
Foreign businesses that have supply chains in China should keep in touch with suppliers to ensure products can be shipped on time.
Many schools, banks, businesses and other institutions will close the day before the festival. Chinese New Year has many business implications. It does not end on the eighth day. Although the festival is over, it can take some time before things return to normal.
This is a brief guide that will help you through this time.
Here are some tips for doing business during the CNY period
Be aware that the Chinese New Year’s effects will not be felt until January 31st, as businesses begin to shut down their operations a week before the festival begins.
- Make inventory stocks
Inventory managers need to have a clear schedule of opening and close dates in order to protect their business’ operations. They also need enough stock to get them through the holiday period.
Foreign companies should remember that the Lunar New Year/Spring Festival public holiday is one the largest shopping festivals of the year, comparable to Christmas in many markets overseas.
Riccardo Beussi is Head of European Business Development at Dezan Shira & Associates’ Munich–Milan Office. He comments, “In days and weeks leading to the New Year Chinese shoppers will rush online and offline to purchase gifts for their loved ones, as well as delicious food and drinks for great guests at the homes of their friends.”
Many businesses in the consumer goods industry achieve their highest sales figures around Lunar New Year.
Benussi says that foreign companies should be prepared for an increase in demand during this time of year and stock up on China to meet the rising consumption.
- Quality control
As pre-festival production increases to meet the “new year gap”, and suppliers are under increasing pressure, the quality of products can sometimes suffer.
Sometimes, issues in product quality control can spillover into the holiday period. High employee turnover means that new workers must be trained and found to replace those who have left. This could lead to delays.
This can be avoided by increasing communication and monitoring in the months before and after holidays to reduce any possible lapses.
Similar bottlenecks may occur in the logistics or shipping industries. It is therefore important to make sure that your shipments arrive at port and are booked well in advance.
Many Chinese port areas are likely to be shut down or operate at a reduced capacity. It is best to avoid them as much as you can. This period is when most aspects of Chinese logistics face a shortage of staff as people return home. Therefore, transporting goods can become more costly.
- Pre-settle payments
These difficulties are compounded by the fact that payments to China and Hong Kong can only be processed during long holidays, depending on local banks and policies. To avoid potential problems with late payments fees, it is often the best course of action to settle all payments prior to Chinese New Year.
Communication with suppliers and planning ahead are key to minimizing cash flow problems.
- Red packet etiquette
Red packets are often given to Chinese New Year Period. These red packets have a symbolic significance because the red envelopes, which are believed to be good luck and energy, are used to send them. Red envelopes are used to send good wishes, happiness and luck to the recipient.
If you are earning an income, it is a good idea to give red packets to your close relatives who are not married and are younger than you, or retirees. This is only a guideline and there are no strict guidelines on who or how much you should give.
Red envelopes in Chinese companies are used to give a 13th-month salary. This can be done by issuing double pay in January or a bonus over Chinese New Year. This is usually given on the day before the Chinese New Year holiday.
Every company that does business in China must be ready to follow local customs during this holiday period.
Get ready for Summer Busy Season
Chinese New Year is an important time in the year, not only for individuals and their families but also for businesses in China. It is often a time for reorganization, strategization, and re-staffing for the next year.
You can set your company apart by planning ahead for this festival. It will reduce supply chain and logistics problems, as well as maximize the opportunities the festival may bring to your company.