The lifting of the ban on fireworks triggered a sharp rise in fireworks concept stocks, and the huge profits behind it**.
Is the era of a complete ban on firecrackers over?
A few days ago, Shen Chunyao pointed out in his work report:
Some local regulations clearly put forward the practice of completely prohibiting the sale and discharge of fireworks and firecrackers, which violates the relevant provisions of relevant laws such as the Measures for the Prevention and Control of Air Pollution and the Measures for the Safety Management of Fireworks and Firecrackers, and needs to be amended in accordance with the laws at higher levels.
All of a sudden, "prohibiting the illegal setting off of fireworks and firecrackers" became a hot topic and aroused heated discussions.
At the same time, CCTV also released such a message:
Before New Year's Day 2022, it is time to put an end to the ban on firecrackers imposed nationwide, in accordance with the opinions put forward by the Standing Committee of the National People's Congress. ”
Although the news has only come out for a short time, the entire ** city has reacted immediately, and on the morning of December 28, the "fireworks concept" began to skyrocket.
Among them, the "King of Fireworks" ST Giant Panda Word Board, Huaertai, Kailong and other leading enterprises in the manufacturing industry have opened, and Deere Chemical is more than 20%.
It's just that the possibility of "loosening" has just appeared, and there is no definite news yet, so why has the "pyrotechnic concept" risen sharply?
After all, this is a "profiteering" industry, and the industry has waited too long.
A kind of "ancient" enterprise.
The firecracker industry has little to do with the modern society, and even in the 21st century, it is still an "ancient" industry.
First of all, their marketing network is somewhat restricted.
For ordinary people, they can only buy it through local ** dealers who have obtained local fireworks licenses.
What, you let me buy it from ** or Jingdong, and then send it by courier?
Sorry, firecrackers are dangerous goods, you can't use ordinary couriers, even if they are wholesale, they must be approved before they can be used.
In China, there are many constraints in China's fireworks industry, there is a serious monopoly, and there is a serious market competition.
Secondly, people tend to ignore the brand of the product when buying fireworks.
Many people put the brand first when buying mobile phones and clothing, but firecrackers are different.
Although there are many "star models" sold on the market now, and many people can name them, how many of them are based on the brand when they really buy fireworksAfter all, there is no after-sales service, and it is not possible to return it.
Therefore, it is difficult for the pyrotechnics industry to form brand influence, and many manufacturing companies are still in the state of "small workshops" in the past, and it is very difficult to develop and grow.
Therefore, for decades, there are still so many pyrotechnic factories in the market, and Liuyang, Hunan Province still maintains the title of "hometown of fireworks", but this "ancient" industry has not been able to regain its life.
The "windfall profits" of the pyrotechnic industry are hugely profitable.
Moreover, because of this traditional way of doing business, its business is not so easy to be discovered, and there is a lot of profit hidden in it.
For example, the Internet celebrity "Gatling", under normal circumstances, is 20 yuan a piece, but in the retail market, it costs at least 70 or 80 yuan a piece, and the profit of the middleman is three to four times, and when the sales are good, one can be sold for 300 yuan, or even more than ten times the profit.
Some ** are even more outrageous, what a fairy stick, a little goldfish or something, it is common to multiply more than ten times.
In the past, the firecracker business was booming, and once there was a news report that a young man selling fireworks in Xi'an could earn tens of thousands of yuan a day, and a small businessman in Jinan earned nearly 10 million yuan a month.
Of course, the reason why this kind of business can make so much money is that there is a lot of liquidity in the market, and you can make money in a year, that is, a few months, and at other times not only there is no profit, but you also have to maintain a certain inventory cost.
What's more, not all industries can profit from it, and the profits are generally on those who sell their products, and those people are not having a good time.
This is a very understandable problem, because the manufacture of fireworks and firecrackers is strictly controlled, and it is difficult for dealers to get licenses in the case of "channel is king".
The pyrotechnics industry is an asset-heavy and labor-intensive industry, and due to the use of a large amount of black powder, the spacing between factories and factories is very strict, resulting in high land prices.
On top of that, warehouses, workers, and routine maintenance also cost money, and the fireworks factory is also responsible for design and R&D, so everyone doesn't make much money.
But for upstream dealers, this is another matter, because they don't have a unified market, so they control their own.
Moreover, this thing itself is a seasonal commodity, and many people do not have too many purchases in a year, so their sensitivity to ** is not high, which gives firecracker shops room to raise prices.
Therefore, there is indeed a huge profit margin, and there are also some sellers who have made a fortune.
Fireworks are easy to cold", a few are happy and a few are sad.
Some people may think:
Now that the smoking ban is about to be lifted, and the profits of this industry are so high, can you take the opportunity to do it?
Rest assured, no matter what industry it is, there will always be people who make and people who will lose, this is a difficult industry to do.
First of all, as we said before, there is a complete chain from the manufacture to the sale of fireworks, and in order to sell locally, you must obtain a license to set off fireworks locally.
However, there are also steps to the issuance of this qualification, you have to go through training, study, and exams, and it will take six to nine days at most.
What's more, the situation is unclear now, and the license may not be granted.
However, with such a big interest, there will always be some people who want to "operate without a license", so the question now is:
Is it really worth it to "enter the game" to make some money?
I think everyone has a different Hamlet in their hearts.
And the fireworks industry, although it looks very simple on the surface, but in fact, due to the big ups and downs, there are too many cats, and there are indeed many people who have made "huge profits", but some people have lost a "bottom to the sky".
The sales of fireworks and firecrackers are generally only available around the New Year, generally starting from the Chinese New Year's Eve, and the cheapest time is the Chinese New Year's Eve.
Newcomers, if they can't grasp the market trends well and accidentally hoard a large number, they can only wait for next year.
Not to mention whether the warehouse can be found, the ** sold next year may not be as good as last year, and it will be difficult to think of not losing money at that time.
Therefore, fireworks are "profiteering", but making money is not an easy thing, there are sorrows and joys, but more people ignore the first one.