Liuyang Fireworks And Firecrackers Association Issued An Initiative Letter To All Fireworks Factories

- May 15, 2018-

Liuyang fireworks association

The initiative letter sent to all fireworks factories. In order to ensure the safety and quality of fireworks and firecrackers, to eliminate excessive rough fireworks production, and to conduct market activities with low-cost marketing, and to jointly create a good market order.

Fireworks and firecrackers production and operation enterprises:

In recent years, the fireworks industry can be described as walking on thin ice, with internal and external difficulties. In the context of the oversight of rectification, there are many illegal businesses that disrupt the market. There are public opinion pressures on security, environmental protection, and culture. Mainly in the following areas:

First, with the development of society and the requirements of safety and environmental protection, fireworks have become the target of public criticism. Blind restrictions and restrictions are gradually enveloping the market for fireworks and firecrackers. It is undoubtedly difficult for the already difficult fireworks companies. As of January 2018, a total of 803 cities across the country had banned the discharge of fireworks and firecrackers, an increase of 81% year-on-year, of which 923 cities had restricted the discharge of fireworks and firecrackers, an increase of 21% year-on-year. This trend will become more prominent in the future.

Starting from the end of 2015, from the top down to the backward production capacity work kicked off. By 2018, only 514 fireworks production enterprises will be retained in the city. The fireworks and firecrackers industry production capacity is bound to decline. At the same time, a new round of rectification and renewal standards have been introduced, and most companies in the city have to invest hundreds of thousands to millions of different amounts of funds for safety rectification. The introduction of various modern safety equipment will increase the safety production cost of companies by nearly 30%. 

Third, due to the continuous increase in the cost of raw materials, transportation costs, labor costs, etc., especially in the recent period, paper prices have risen sharply, and bank credit has contracted. All raw material purchases are required to be paid in cash. The lack of liquidity in production companies has further increased pressure.

To this end, I will call on all fireworks manufacturers to operate:

First, safety is the root of business survival. The fireworks and firecracker industry is a traditional high-risk industry. Due to its flammable and explosive properties and various factors in the production process, it is prone to safety accidents. Only by achieving safety in production can the industry continue to develop. The heartbeat of safe production in all companies should be a warning sign for the production safety. With the industry spirit that allows the fireworks and firecracker industry to continue to benefit future generations, we must work tirelessly to ensure safe production and prevent overwork and overproduction. Efforts will be made to maintain the hard-won good development environment of the current fireworks and firecracker industry, and to promote the sustained and healthy development of the industry.

Second, quality is the way to survive. With the gradual increase of people's awareness of safety and environmental protection, consumer demand for fireworks and firecrackers products has also been increasing, and the traditional price competition model is gone. Only stable and reliable product quality is the guarantee for the survival of enterprises. Each fireworks and firecracker production enterprise shall continue to improve product quality with the spirit of pursuing excellence, quality of excellence, and customer-oriented service spirit, and inject quality soul into its own products so that it will stand the test and scrutiny of the market.

Third, innovation is the “market discourse” that can reflect Liuyang fireworks. The biggest development bottleneck and risk for fireworks companies are technological innovations and the reshaping of values and ideas. Each fireworks manufacturer must pay attention to the awareness of product innovation and R&D and the training of professionals. Focus on fostering fireworks culture, fireworks creativity, fireworks brands, and actively promote the development of fireworks creative projects. The other is to strengthen the protection of intellectual property rights, promote the formulation of new product standards, control the market according to standards, so that a new product can maintain at least 5 years of exclusive sales. Relying on the market mechanism, companies engaging in R&D and innovation are rewarded.

Fourth, the generosity given by the era has a deadline. Fireworks is a landmark product of Liuyang, and building a landmark product may take decades or even hundreds of years, but destroying it may only happen overnight. Each fireworks and firecracker production enterprise must change its development ideas in a timely manner, independent research and development, independent innovation, and find market increments and variables. Abandoning the distorted short-term unfavorable interest orientation and holding too many obsessions with the output value and output are still at the low level of “price wars”. Without a truly rational consideration, it is not conducive to the sound development of the industry! It is necessary to reflect on the pain of the ban, increase investment in research and innovation, and change the concept of heavy sales and research and development. Efforts should be made to prevent the production and operation of shoddy products, excessive regulations exceeding the standard, and excessively high prices, and to maintain the order of good production and operation in the industry, so as to complete the marketization process of true survival of the fittest. The fireworks industry will become more sustainable and healthy.

Liuyang City Fireworks and Firecrackers Association

May 11, 2018