2025 Lunar New Year is the year of the snake, meant to change lives just like a snake sheds its skin and begins anew. There’s a lot at stake at this time, it is more than just a festive celebration—it’s a cultural phenomenon that drives one of the biggest shopping frenzies of the year. For retailers and e-commerce brands, it’s Black Friday meets a month-long party for people across the world. Shoppers are on the hunt for everything from gifts to home upgrades, and wallets are wide open. But here’s the catch: while the fireworks light up the sky, supply chains often hit a snag.
It’s a giant of a holiday with huge sales potential gracing the beginning of the year. It’s celebrated with the same gusto as that of Christmas. It can be stressful for supply chains if they’re not prepared.
In this blog, we’ll uncover smart strategies to navigate supply chain hurdles, delight customers with culturally resonant campaigns, and make this season your biggest one yet.
What is the Lunar New Year and Why Is It So Important?
The Lunar New Year, also known as Chinese New Year, celebrates the beginning of a new lunar calendar which many cultures follow. It is celebrated across Asia with vibrant decorations, food, gifting, family gatherings, the infamous dances, and of course, massive shopping sprees. Around 1/5th of the world’s population celebrates this holiday. For marketers, it’s a super busy time, where most brands are on the heels of this golden opportunity to tap into heightened consumer demand for almost anything – from gifts and festive decor to apparel. The central theme of the holiday is to bring in the year right, and welcome prosperity, peace, and good fortune.
As irony would have it, this season is also notorious for supply chain disruptions—factories and businesses in key markets like China often shut down for weeks, shipping bottlenecks build up, and demand for seasonal products surges beyond expectations or predictions. Brands have got to plan ahead to meet customer expectations and capitalize on this holiday. You know you’ve reached the profitability spectrum when you’re able to ace this holiday and turn it into legitimate sales.
Relevant dates for Chinese New Year:
- Chinese New Year’s Eve: January 28, 2025
- Chinese New Year’s Day: January 29, 2025
- The Lantern Festival: February 12, 2025
How to Prepare for Lunar New Year 2025
Demand Planning and Inventory Management
The value of online sales in China went up by 9% in 2024, this number is only going to rise. Let’s start with the table stakes: accurate demand planning is super essential for a holiday like this where demand usually fluctuates. For a constantly changing demand, you also need stringent measures for inventory management to avoid Lunar New Year disruptions.
- Forecast Demand Early: Use data analytics and historical sales trends to predict demand spikes for specific products. Advanced retail merchandising systems can help retailers analyze buying patterns and tailor their inventory accordingly.
| Example: A fashion retailer might predict an increased demand for red clothing or festive accessories and stock up on these items accordingly. Michaels, the stationery brand, may want to stock up on red envelopes. |
- Stock Up in Advance: Factory shutdowns around the Lunar New Year in parts of Asia happen for around 2 weeks and during that time, chaos reigns supreme where your business needs to be prepared to meet a 2-week demand without any backing. Businesses should place orders well in advance to avoid production slowdowns and shipping bottlenecks. This is also a great time to work on streamlining the production process, revamping any old ways, undertaking renovations, and revising your manufacturing errors. Here’s a great example of how a company undertook a revamp during this time.
- Leverage Local Warehousing: E-commerce businesses or on-ground retail stores – everyone is targeting Asian markets at this time, especially businesses working at a global scale. Considering regional warehouses and turning stores into warehouses can help have products in hand, shorten lead times, and meet customer demands promptly with less chance of backlogs.
- Monitor Inventory in Real-Time: There are warehouse management tools and advanced retail merchandising systems that provide real-time visibility into stock levels, red flags in the process, and missing SKUs, ensuring businesses can adjust quickly to shifting demands and issues that need immediate addressing.
Supply Chain Preparedness
Always be proactive, reactive approaches for supply chains usually land businesses in trouble. Proactive supply chain management is the key to killing delays and ensuring product availability at a time when shopping forms a core of the celebrations.
- Advance Shipping Schedules: Shipping volumes surge in the lead-up to the Lunar New Year and during the celebration days (refer to the dates above). Work with logistics partners to schedule shipments earlier and incorporate buffer times. Automate processes, define shipping categories, allow time in advance to predict the shipping needs and prep for them.
| Tip: Aim to have your shipments cleared before the holiday period begins to avoid port congestion. |
- It Takes a Village: The right suppliers and logistics partners help you manage a widespread operation or even a single warehouse. For most seasonal or festive periods, you can start by reducing dependency on a single supplier or shipping route. Collaborating with multiple partners ensures that even if one fails to deliver on time, there’s one ready to back it up!
| Example: If a primary supplier halts production, a secondary supplier can step in to minimize disruptions. |
- Eyes on Deck: Use technology for real-time visibility. Modern inventory and supply chain management tools not only provide real-time updates on stock levels but also help you track shipment status, take over returns management with ease, and make sure no SKU is lost in the seas. Your business gets time to respond quickly to disruptions.
- Risky Business? You’ve Got a Plan: Implement risk management plans for crises that you predict might happen. Identify potential vulnerabilities in your supply chain and create contingency strategies, such as alternative transportation routes or flexible supplier contracts.
Cultural Relevance and Marketing
Knowing your customers and understanding them can make a huge difference in your sales. Connect with customers on a cultural level and recommend products that can significantly boost sales during Lunar New Year. Here’s more of what you can do:
- Create Targeted Promotions: Offer discounts, bundles, and limited-edition products that resonate with the festive season. Highlight themes of prosperity, family, and new beginnings.
| Another Example: Electronics retailers can bundle items like smartphones with festive-themed accessories (like phone cases, earphones, etc.) for Lunar New Year promotions. |
- Localized Offers: Tailor your messaging and offers to specific markets. For example, red packaging with gold coins, symbolic of good luck, can make your products more appealing in Chinese and other Asian markets.
- Personalized Marketing Campaigns: Use AI-driven tools to deliver personalized offers and recommendations based on customer preferences and past purchases.
| Tip: A loyalty program offering exclusive rewards during Lunar New Year can enhance customer engagement. |
- Engage on Social Media: Leverage platforms like WeChat, TikTok, or Instagram to run culturally relevant campaigns. Include influencer collaborations to amplify your reach.
Omnichannel Customer Experience
Ensuring a seamless customer journey across all channels is essential during peak shopping seasons like Lunar New Year.
- Optimize Online and Offline Integration: Enable customers to browse online and pick up in-store (BOPIS) or return items across channels for added convenience.
| Example: A retailer can let customers order Lunar New Year gift sets online and pick them up at the nearest store within hours. |
- Leverage Digital Tools: Popular digital tools like chatbots and e-wallets can enhance the shopping experience. For instance, chatbots can assist with product inquiries, while e-wallets facilitate quick and secure transactions.
- Prepare for Increased Traffic: Ensure your e-commerce platforms can handle high volumes of traffic during peak periods. Regular stress testing and server optimization can prevent outages.
- Enhance Mobile Shopping Experiences: Optimize mobile apps and websites for faster loading times and smoother navigation, ensuring customers can shop effortlessly from their smartphones.
Conclusion
The Lunar New Year presents both opportunities and challenges for retailers and e-commerce businesses. By proactively planning demand, preparing supply chains, and engaging customers with culturally relevant campaigns, businesses can minimize disruptions and capitalize on this festive season.
Leverage advanced retail merchandising tools, optimize your inventory, and adopt omnichannel strategies to ensure a seamless shopping experience for your customers. With thoughtful preparation and the right technology, your business can maximize sales and turn the Lunar New Year into a season of prosperity for your brand.
