Hunan Fireworks Encounter Winter

- May 24, 2018-

On May 22, Changsha Customs released data showing that from January to April 2018, Hunan Province exported 39,000 tons of fireworks and firecrackers, a decrease of 16% year-on-year. The reduction in the amount of prices, the new situation under this traditional industry are facing a new test.


【data】

Exports of fireworks and firecrackers fell in April

As an industry where the upstream and downstream chains are the most concentrated and complete in Hunan Province , fireworks and firecrackers are experiencing painful development. Data show that from January to April this year, the province exported 39,000 tons of fireworks, a year-on-year decrease of 16%. The export volume was 570 million yuan, a decrease of 17%, and the average export price was 14,900 yuan/ton, down by 1.2%. Among them, 11,000 tons of fireworks and firecrackers were exported in April, a decrease of 39%.


【behind】

As a traditional competitive industries, why will the export performance in the first quarter regress?

According to feedback of fireworks production companies, in the first quarter, due to the suspension of production for nearly 40 days during the Spring Festival and the two Sessions, the supply in March and April was obviously insufficient. For instance, the export volume of fireworks from Champion Fireworks Manufacture Co., Ltd. decreased by 43.1%.

For the fireworks industry, they also face the same huge challenge, which is the increase in labor costs.

In the case of fireworks, several sets of data are the best explanation: At present, the labor costs of fireworks and firecrackers in China account for 20%-30% of the production cost; the transportation costs of fireworks and firecracker exports have increased year by year, as much as 2 to 5 times that of ordinary goods; The cost of safe production such as equipment and management increased by nearly 30%, and the impact of many factors continuously pushed up product prices, making orders gradually shift to economically underdeveloped areas such as Vietnam and India.


【analysis】

Breaking throught the dilemma need to transfer to the road of Intelligence and Branding

In the face of the status quo, Changsha Customs has given suggestions that the traditional fireworks and firecracker industry should deepen the transformation and upgrading of the industrial chain, constantly increase the application of new technologies, new equipment, new technology promotion.

In addition, it is imminent to strengthen the construction of independent brands. How the fireworks and firecracker industry can increase brand added value and cultural added value and enhance the competitiveness of the international market are all problems that are expected to be solved.

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