In China, there is a superstition where you cannot start a [Chinese] new year without new clothes and a clean house. Whatever you do on the first day of the year will be an indication of how your fortunes would be for the rest of the year. So people would try to look their best on the first day. They would make sure they get haircuts before the year ends because they don’t want to cut anything at the start of the year.
The practices the informant mentioned are traditional customs that are practiced every year during the Chinese New Year festival (which some may argue is a misnomer, because several places celebrate the same holiday). Having grown up in China, the informant practices this every year.