A total ban on fireworks and firecrackers, is it time to put an end to it?
Recently, Shen Chunyao, director of the Legislative Affairs Committee of the Standing Committee of the National People's Congress, mentioned in the report:
Some local laws and regulations stipulate that the sale and discharge of fireworks and firecrackers are inconsistent with the relevant provisions of the Air Pollution Prevention and Control Law and the Regulations on the Safety Management of Fireworks and Firecrackers, and shall be amended in accordance with the spirit of the provisions of the superior law.
For a time, the entry "It is illegal to completely ban fireworks and firecrackers" appeared on the hot search, causing heated discussions.
At the same time, CCTV also published an article saying:
"Before the Spring Festival in 2024, all localities should take the voice of the National People's Working Committee as an opportunity to completely ban fireworks and firecrackers, and it is time to end. ”
Although it has only just released the rumors, the capital market has heard the wind, and on the morning of December 28, the "fireworks concept stocks" ushered in a collective surge.
Among them, the "first share of fireworks" ST Panda won the word board, nitric acid and other fireworks production chain manufacturers Huaertai and Kailong shares all bid for the daily limit, and Deere Chemical once rose by more than 20%.
It's just that there is a little hope of "loosening", and there is no accurate news yet, why did the "fireworks concept stocks" rise so sharply?
In the final analysis, the business of fireworks is indeed "profiteering", and practitioners have been waiting for too long.
The business of fireworks is almost incompatible with the modern economy, and although it has developed into the 21st century, it is still a veritable "old" business.
The first is the limitation of sales channels.
There is only one formal channel for ordinary consumers to buy fireworks, and that is the local dealer who has obtained a sales license.
What, you said to buy a little more from a certain treasure, a certain more, express delivery?
Sorry, fireworks and firecrackers are dangerous and explosive, can not be transported by express logistics, even if the dealer purchases, but also have to be approved, the use of specially qualified dangerous goods transport vehicles.
Due to the restrictions on sales channels, the fireworks and firecrackers industry presents a strong monopoly nature, and the industry competition is not sufficient.
The second is that consumers only recognize the product and not the brand when buying fireworks.
Brand is an important consideration for most people when buying mobile phones and clothes, but fireworks are different.
Although there are many "star models" of fireworks products on the market, many people can name some fireworks products, but who will recognize the brand when buying fireworks?Anyway, there is no after-sales service and no return.
Therefore, it is difficult for the fireworks business to produce a brand effect, which leads to the fact that most of the manufacturers are like the previous "small workshops", and it is difficult to become bigger and stronger.
This is why, decades later, those fireworks factories are still producing and supplying in the market, and Liuyang, Hunan Province is still the "hometown of fireworks", and this "ancient" business has not been able to rejuvenate for a long time.
It is precisely because of the ancient business model that the industry is not transparent, and there are often huge huge profits hidden in it.
Take the Internet celebrity product "Gatling" as an example, the wholesale price of the manufacturer is usually about 20 yuan a piece, but when it circulates to the retail end, the cheapest one is 70 or 80 yuan, channel profits as high as 3-4 times, catch up with the peak sales period, a rise to two or three hundred yuan is not uncommon, channel profits can be as high as 10 times or more.
Some products with lower unit prices are even more exaggerated, such as fairy sticks, small goldfish, etc., and dozens of times the profit is common.
After the end of the epidemic last year, fireworks were once hot, and there were ** reports at the timeA fireworks stall boy in Xi'an can earn more than 10,000 yuan a day, while a small dealer in Jinan has created nearly 10 million yuan in more than a month.
Of course, the windfall profits of this industry, on the one hand, are caused by the closure of the industry, on the other hand, it is mainly because the off-peak season is too obvious, and the time to make money in a year is only one or two months, and the rest of the time is not only not profitable, but also has to maintain not low storage expenses.
And not the whole industry can get huge profits, huge profits often only belong to the downstream of the industrial chain sellers, and the upstream producers are actually very hard.
This reason is very simple, the entire industrial chain of fireworks production and sales has been strictly supervised, so it is a veritable "channel is king", and it is not so easy for retailer outlets to obtain qualifications.
The upstream of the fireworks industry is an asset-heavy, labor-intensive industry, and because it involves black powder, there are strict standards for the safety distance between each workshop, so there is a high cost of land involved.
In addition, warehouses, workers, and daily factory operation and maintenance all need to be expensed, and fireworks manufacturers need to do design, research and development in addition to production, and the profits are not high.
But when it comes to the sellers in the downstream of the industrial chain, the situation becomes completely different, because there is no authoritative market price limit, they have the pricing power in a region.
In addition, it is a seasonal product, and everyone can't buy it a few times a year, so it will not be so sensitive to **, and it also brings room for price increases to fireworks sellers.
So the profiteering thing does exist, and some sellers do make a lot of money.
Seeing this, someone may start to ponder:
Since the fireworks ban may be about to be lifted, and selling fireworks is so lucrative, can you take the opportunity to do it?
Don't worry, any business is where someone makes money and someone loses, fireworks are easy to cold, and this business is not as easy to do as imagined.
On the one hand, as we mentioned earlier, the entire industrial chain of the fireworks industry from production to sales is subject to strict supervision, and if you want to sell fireworks locally, you must get a local fireworks business license.
However, the issuance of these qualifications is planned, and if you want to apply for a fireworks sales point, you need training, study, and certification, and you can only sell it for 6-9 days within the specified time.
Especially now that the situation is not clear, whether you can get a license or not is still two words.
Of course, in the face of excess profits, there must be no shortage of speculators, and many people are playing the idea of "operating without a license", so the problem here becomes:
Is it worth it to take the risk of "entering the game" in order to make some extra money?
There are a thousand Hamlets in the hearts of a thousand people, and I believe that everyone has the answer in their hearts.
On the other hand, the fireworks industry seems simple, but because the market is extremely volatile, there are many twists and turns, and there are indeed many bosses who make "huge profits", but there are also people who lose "bottom to sky".
The sales season of fireworks and firecrackers is full of a few days before the year and the Spring Festival, and often after the second day of the Lunar New Year, ** will take a sharp turn.
If a newbie does not grasp the sales trend and accidentally leaves a large amount of inventory, he will have to wait until the next year to sell.
Not to mention whether there is a suitable warehouse, the selling price of the second year may not be able to catch up with the cost of this year, and it is difficult not to lose money in the end.
Therefore, the fireworks industry is indeed "profitable", but the money is not so easy to make, some people cry and some laugh, but many people see the latter and do not see the former.
Write at the end:
News of the "ban on burns" has been loosened every year, but this year may be the most vocal and probable.
In addition to the practitioners in the fireworks industry who are looking forward to it, there may be many people who also have the same aspirations, as CCTV said: