Chinese Fireworks Industry
ISSUES - Legal Regulations: The United States, Canada, Europe, and even parts of China have placed strict regulations on the use of fireworks. In 1997, there were an estimated 8,300 injuries related to fireworks. Although injuries are more common with basic products like bicycles, skateboards, and even pens and pencils, fireworks-related injuries are more publicized because they can result in more serious injuries and even death. These regulations have been adopted because of the safety concerns that come along with the use of fireworks. ... Canada did not have any Chinese companies on a list that included fireworks companies allowed to sell in their country. China itself also banned the use of fireworks in over a third of the country. Also, concerns about pollution and the destruction of land and property have effected the sale of fireworks. ... Foreign companies will buy Chinese fireworks cheap and resell them at a considerable mark-up. ... As a result, profit margins for the entire industry continued to shrink. The Chinese government made strides in improving this problem by setting up local offices in major cities. ... It is very important to get these wholesalers to buy your product because that is how a majority or the fireworks got to the public. With over 500 manufacturers in the Liuyang area, it can be difficult to get a wholesaler to purchase a significant amount of fireworks. ... ANALYSIS The current strategy used by Liuyang fireworks manufacturers has not changed at all basically over time. The industry is very low tech and is labor intensive. ... The industry includes manufacturers throughout the world because of the large amount of export sales that take place. Chinese fireworks are sold in Southeast Asia, North America, Europe, South America, and also throughout the rest of the world. ... Canada was also a big market, but it was virtually closed to Chinese fireworks manufacturers. China did account for 80-90% of the world’s fireworks, though.