The Lunar New Year factory shutdowns are in full swing. Many factories are shut down this week and next. It will take into mid-February for many of them to be back at full speed.
With the very difficult economic environment there is no better time to build relationships with your Chinese suppliers than right now. Contact them to see how their business is and how you can work together during this difficult time. Also discuss pricing as it relates to the fall in raw material prices. Maybe you can forgo decreases now in order to escape increases later when inflation hits again. Maybe you negotiated in early 2008 to avoid large increases and your factory partners are now gaining back some of that margin. The point is, use this time to assess and build your partnership. The strongest bonds are built during difficult times.
The Lunar New Year's Day is Monday, January 26th. The new year will be the year of the Ox.
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