Kickstarter projects are renowned for being many things
Innovative, weird, wonderful… and late.
Delays go hand in hand with doing something new. There are always problems that arise along the way.
Certain components don’t quite work, or your order ends up being four times the projected size. It’s part and parcel of being a super-early supporter – backers are aware that the product is unlikely to actually arrive when you say it will.
But there is a pretty big problem that you can account for now
Before you set your timelines. If you’re manufacturing in China, this could cause up to a month’s delay, and it is completely predictable.
It happens every year.
I’m talking about Chinese New Year
This year, nearly every technology project I had backed was hit by an “unexpected delay” when the manufacturing plants simply wouldn’t do anything.
Your project could be hit for more than a month. Further, it’s important to understand a little about the Chinese culture to understand just how badly this could affect you.
Chinese factories are, by and large located near ports – on the coast of the country
Many Chinese factory workers are migrants from the interior provinces.
Each year, a mass exodus occurs in the week leading up to Chinese New Year. Factory workers travel across the country to visit their families for the week.
In many cases, this is the only time each year a worker gets to see their family.
After the celebration is over, however, is when things can go a little pearshaped.
Imagine you work in a country where jobs in your field are plentiful
Infact, everyone is understaffed, and many positions are incredibly similar.
Now consider the trek you have to make to get home. It might take you a week to get there on crowded trains. Maybe you meet someone who tells you about a sweet job somewhere else. Perhaps your mother introduces you to the neighbour’s daughter. Perhaps you just hate the travel.
Employers have literally no idea how many staff will return after Chinese New Year
Many have to incentivise a return to work. Even if you have included the month delay in your timeline, it’s possible that only half of your factory’s workers will come back after the break.
New workers will need recruitment and training. If you have very specific training needs, this means extra time, energy, and yes – money.
Major retailers and suppliers know about this phenomenon
They benefit from a pre-close speed up in production (when workers try to earn extra days off for the holiday) and bank inventories for the period.
Normal consumer behaviour continues around the world, while China experiences its holiday season and the entire population takes a break.
It’s like our Christmas period on overdrive
But it’s not just the factories. When the vast majority of your population is moving large distances around the country, and every major retailer in the world is trying to bank supplies, transport becomes a giant problem as well.
Ports usually stay open with a skeleton staff, but space is limited. Bookings need to be made in advance and your goods need to be there early.
This, in turn, means that shipping prices will increase. Even though the demand is high, only so many ships can get in and out of the harbour, crews are limited, and everyone wants a whole lot of stuff.
But if you’re about to launch your new product on Kickstarter, you might not even think about it
Chinese New Year is likely to hit you even harder than the big boys.
Let’s face it – major retailers are experienced in this, and can plan and staff accordingly. If this is your first foray into manufacturing, it’s possible that you won’t even have a clue until suddenly you’re facing an uncertain delay – one which you could have accounted for with some planning.
Setting realistic backer expectations is important
If your manufacturing process is likely to occur between January and February, it pays to add an extra 6-8 weeks to the deadline.
If that proves to be too long and your product arrives before the deadline, your backers will be delighted. But a 2-month delay could cause an issue if it’s just one of a myriad of things that can go wrong.
Chinese New Year changes each year with the lunar schedule
For a good list of when Chinese New Year begins over the next few years, check out this link. Remember that factories will close about a week beforehand, and remain closed for 2-3 weeks after that date.
Want to know more about manufacturing in China? Check out this great blog from CrowdCrux.
