Chinese New Year Tests Industry's Ability to Plan Ahead

It's that time of year again: Chinese New Year starts this Thursday, Feb. 3, and so begins another week or so of celebration, this time to usher in the Year of the Rabbit. To many Asians, the season, much like our Christmas and New Year's, is a time to spend with family and friends. It thus explains the exodus of workers from the coastal cities to inland areas where their families live.

For the furniture industry, this mass migration is always a period of anxiety that has companies asking, "Will my goods ship before or after Chinese New Year?" If the answer is after, that leads many to wonder when their goods actually will ship, given that many workers don't return to the factories after the holiday. The response to this question also can determine how customers view your company - as a speedy rabbit or something perceived as bulky and slow, such as an ox.

At the recent Las Vegas Market, it appeared that a number of companies are choosing the path of the rabbit. Many we spoke to last week said their goods already were in production and were ready to ship before the Chinese New Year. If this is the case, then they will hit retail sometime in early spring.

Others we spoke to were touting their success with goods launched at the last High Point Market that will soon be arriving in U.S. warehouses, meaning that customers can get them on their floors in a matter of weeks. Either strategy bodes well for the early April High Point Market, too, as retailers will be able to get relatively quick shipment of merchandise.

Obviously, this notion of speed to market requires a great deal of planning, particularly since there are four major markets a year to deal with, six if you include High Point's Premarket. The companies that are well prepared obviously will win out among many customers. Those that don't may have a little explaining to do.

How well prepared is your company?