The daily turnover reaches 200,000 yuan, and the fireworks dealers are in trouble again?
Wen Cao Shuangtao.
Edited by Yang Bocheng.
In the Spring Festival of 2024, fireworks will be carried out in many places across the country"Ban"Start relaxing.
Various localities, including Kunming, Chongqing, Guangzhou and Changsha, have issued management measures to ban fireworks and firecrackers, which also stipulate the time and area of the ban on fireworks and firecrackers.
It can be said that the continuous easing of the policy has awakened the public's enthusiasm for fireworks and firecrackers, making it a new bright spot in Spring Festival consumption. At the same time, Donews also realized that the current fireworks market is still chaotic, and the industry still needs to continue to explore.
Fireworks don't cool down easily, and wholesalers are busy.
Since the 10th day of the Lunar New Year, we have sold more than 200,000 copies every day. On the fifteenth day of the Lunar New Year, the sales volume directly exceeded 300,000 copies, an increase of about 40% over previous years, and it was still in the county-level market"。**Shang Li Ming (pseudonym) told us.
Li Ming went on to say that because of the border between Anhui and Henan provinces, there are many consumers in Henan who drive for an hour or two to buy fireworks.
These people are divided into three categories: first, ordinary families, they prefer Gatling, magic wands, peacock openings and other types of fireworks, and the purchase ** ranges from 300 yuan to 1000 yuan; The second is businessmen, they prefer thousands of miles of rivers, Milan night, millionaires and other boutique fireworks type fireworks, the purchase ** in principle is about 10,000 yuan; The third is the fireworks seller who buys for self-driving tours, and the main sales area is the local fireworks market.
As Li Ming said, the public's high enthusiasm for fireworks is actually the result of a combination of factors.
First of all, in recent years, more and more people feel that the smell of the New Year is disappearing. In the childhood memories of many people after the first decade of the last century, the enthusiasm for visiting relatives during the Chinese New Year is high, but the phenomenon of severing relations with family members is getting closer and closer at this stage.
*: Hu Xiaowu and Han Tianze: Youth"Severed affiliation": How did that happen? Go?
Sociologist Fei Xiaotong once said that rural society is ultimately closed, it is just a cycle. At that time, family members were closely related by blood, and the clan network linked by blood was the most important social network to maintain the harmony and stability of rural Chinese society. In the 21st century, factors such as population mobility, separation of family and work, and increased social involution due to rapid economic and social development have undermined this relationship.
Fireworks have been passed down for thousands of years since ancient times and have become an important representative of the New Year's flavor. On such a special day as the Spring Festival, when you put aside the tiredness of the year and the curling smoke in your heart, the reason why people are willing to spend more money to buy fireworks and firecrackers is also to find the taste of the year and childhood through fireworks. It is also to make myself and my family excited in the continuous blooming of fireworks.
Finally, the popularity of short ** has made it possible to make pop-up fireworks, and fireworks manufacturers continue to innovate fireworks, so that the consumer base of fireworks continues to expand.
Like"Gatling"、"Auspicious fireworks"、"Chicks lay eggs"These fireworks are not only sought after by young people, but also loved by many children. Many parents think that once a year anyway, during the Chinese New Year, it is more important to make the children at home happy than anything else, and they are naturally willing to spend more money on fireworks.
number, Douyin.
The prosperity of the fireworks and firecrackers market during the Spring Festival this year has not only driven the upstream including papermaking, printing, saltpeter and metal refining, etc., but also the development of the entire industrial chain downstream for warehousing and logistics enterprises and terminal sales channels such as wholesale and retail stores, taking into account the differences in the prohibition of fireworks and firecrackers in different regions, and also driving the rapid development of the economy in some regions.
For example, in Hongheqiao, Funan County, Anhui Province, local policy allows fireworks to be set off on one side of the bridge, while in Huaibin County, Henan Province, local policy prohibits fireworks on the other side of the bridge. The difference between the two policies means that many Henan consumers have to choose"Henan earns money spent in Anhui"，"Take Anhui's GDP as a contribution"。
Countless consumers who came to Honghe Bridge from Henan to buy fireworks and firecrackers have made Honghe Bridge, which was originally only a rural commercial town, a city of two provinces"Internet celebrity check-in place"。Even when we visited, we found that before the eve of the Spring Festival, the local fireworks turned the night into day, which also drove the activity of local fireworks, gas stations, catering, accommodation and other industries.
In addition to the municipal market, Liuyang, Hunan, as the largest producer of fireworks and firecrackers in China, will hold a series of fireworks and firecrackers events in Liuyang in 2023. According to Hunan **, each fireworks event in Liuyang attracts an average of more than 30,000 tourists, of which 9506% came from outside Liuyang, driving cultural tourism consumption of more than 2,000 yuan, and radiating the catering and accommodation industry with rural tourism"Tour the countryside during the day and watch fireworks at night"Casual mode.
The fireworks market** remains chaotic.
Although fireworks and firecrackers are beautiful, because they are flammable and explosive, the control of fireworks and firecrackers by express companies is extremely strict. Zhang Yang (pseudonym), regional manager of a rookie station, revealed that Zhongtong currently clearly stipulates that if the outlets illegally collect fireworks and firecrackers, they will be assessed according to the standard of 5,000 yuan. It is difficult to move an inch online, which determines that the fireworks and firecrackers market is a strong offline market and a strong wholesale market with asymmetric information.
On this basis, the price increase from business to retailer has almost become the norm in the market. For example, during the Douyin fire last year, the price of transportation** rose from 10 yuan to 30 yuan and then to 60 yuan. The retail price in the terminal market ranges from 100 yuan to 180 yuan. The factory price of the cannon that everyone likes is thrown at 2 yuan and sold for 5 yuan to 6 yuan box, and the profit of the whole fireworks is as high as 200%-300%.
The high premium is actually the result of a combination of factors. As far as the market is concerned, Li Ming pointed out that on the one hand, only after obtaining the certificate issued by the relevant local departments, can the merchants purchase goods from the Liuyang Firecracker Factory. However, the number of *** passes in a region is extremely limited, and some counties only issue 3-4. In order to obtain these documents, wholesalers have to bear customer service costs, venue costs, personnel costs, etc., so it is almost too difficult to handle millions of such documents.
Secondly, whether individual sales are mainly for personal use or secondary small profits, people like to buy fireworks and firecrackers in places with more varieties, which requires wholesalers to maintain inventory. Previously, factories and wholesalers in the fireworks industry used an account-based model with extremely long payment cycles.
However, last year, due to capacity constraints in the Liuyang area, many wholesalers had to pick up the goods at the Liuyang factory with cash directly. If you add the cost of documents, without tens of millions or even hundreds of millions of assets, it is almost difficult to reach the best business, which also means that wholesalers have to bear cash flow turnover costs, bank interest costs, etc.
Third, generally speaking, the hot sales cycle of fireworks and firecrackers is only 20 days before and after the Spring Festival. Basically, after the fifth day of the first lunar month, as people return to the city, the fireworks market gradually returns to cold. According to the experience of previous years, the annual inventory ratio is about 30%-40%, which can only be digested by closely following the market such as weddings and openings.
In addition, fireworks are afraid of fire and tide, and the current packaging of fireworks and firecrackers is generally based on plastic or cardboard packaging, and it is inevitable that there will be extrusion in the whole circulation and storage process. Once the deformation of cardboard packaging is affected in the appearance of sales, it is difficult to enter the market circulation, which leads to the fact that at least 10% of the inventory of 30%-40% of the inventory cannot be circulated to the market. In the case of the Southern Market, this proportion is likely to be higher due to the relatively long rainy season.
In order to protect themselves from the aforementioned costs, wholesalers have to multiply the price of fireworks at peak demand. After all, the market demand is here, and those who don't buy will naturally be bought, and those who don't buy will naturally be bought.
The strong wholesale model means that the fireworks products sold in the end market are heavily homogeneous. In markets in many areas, fireworks such as Gatling guns, fairy sticks, and small goldfish can be found almost everywhere. The high degree of homogeneity of the product, coupled with the high gross margin of the fireworks product, also creates some problems.
*：donews
On the one hand, according to the current policy, individuals must obtain a fireworks retail license. Some professionals revealed that the entire process requires at least hundreds of thousands of yuan. Therefore, in the fireworks market in some cities, several retailers who have obtained compliance certificates are often used"Heat up", together to raise the fireworks in the area**, which is why Li Ming mentioned above that some consumers drive for an hour or two to buy fireworks.
On the other hand, due to the early holiday of many task factories this year, the peak of returning home is also earlier than in previous years. Many people who returned home early and local residents *** firecrackers in various ways. However, since the small traders did not have legal documents, the authorities directly started fighting"Guerrilla warfare"。
At the same time, some sellers take advantage of the problem that consumers do not understand fireworks**"Sky-high asking price""When you see someone, you will put it on the plate"。
We visited many places in northern Anhui and eastern Henan, and found that some Gatling sellers asked for 30-40 yuan, but in some places Gatling asked for 50-60 yuan. If you are a student or a young woman, you will be asked for 70-90 yuan directly. That is to say, at present, the entire fireworks market is extremely chaotic, and consumers will be deceived if they are not careful.
In 2023, the consumer market will accelerate into the fourth consumption era, and consumers will pay more and more attention to sex. The excessively high profit margins and disorderly market of fireworks and firecrackers party operators may soon be able to drive the prosperity of the fireworks and firecrackers market during the Spring Festival. However, if left unchecked for a long time, it will also restrict the development of the fireworks market.
* The chain is still decentralized.
Not only the sales link, but also the actual transportation of fireworks and firecrackers There are also many problems. Rong Lei, who has been engaged in the freight industry for many years, told us that because fireworks and firecrackers belong to a class of dangerous and explosive materials, the fireworks and firecrackers transportation vehicle policy has strict requirements. Ordinary 4m2 6m8 13m6 high hurdle vehicles are not allowed to be transported, and the transport personnel must obtain a hazardous chemicals transportation certificate.
At present, in the fireworks transport vehicle market, all modified vans and van semi-trailers must be equipped with fire extinguishers, corresponding light signal devices, GPS navigation communication signals and equipment, and the requirements for snow chains are also higher. In addition, each vehicle must be able to be connected to the Internet as part of the provincial joint control of the Ministry of Transport.
For freight vehicles carrying fireworks and firecrackers in violation of regulations, Liuyang has given a certain reporting fee, which has also led to some local fireworks factory owners also taking advantage of loopholes. In some groups of freight drivers, high-load drivers are rewarded with 8-10 yuan kilometers and are told to take the national highway to avoid inspections in some service areas. Some freight drivers were"Flickering"Loaded with very high goods, the owner of the firecracker factory reported directly, which also means that some compliant vehicles do not dare to go to Liuyang easily, for fear of being caught by the other party to report the loophole and fine.
The large market demand and the small number of compliant vehicles also increase the transportation cost of fireworks and firecrackers during the Spring Festival, and the transportation cost of 1,000 kilometers can sometimes reach 20,000 or 30,000 kilometers. In order to make up for the cost, the bosses of the business will inevitably push up the sales of fireworks and firecrackers, which is another reason for the high market of fireworks and firecrackers.
In addition, another problem arises in the above-mentioned strong wholesale model, which is the demand asymmetry between supply and demand. Let's take Gatling as an example. In fact, Gatling's production process is extremely simple, and the product has been around for more than a decade. However, due to the cold domestic market, the products are generally export-oriented. It wasn't until the short ** platform became popular that Gatling opened up sales channels in the domestic market.
But Gatling, in addition to the great attention of the market during New Year's Day this year, the Spring Festival in 2024 is approaching, but the popularity of Gatling has not increased, and the fireworks market is currently missing a second Gatling. So how to use social ** to create more"Gatling"How to meet the differentiated needs of more consumers and make fireworks really fun is also another test for subsequent fireworks factories.
Source: WeChat Index.
Conclusion. Xu Zhiqiang, deputy director of the Liuyang City Emergency Management Bureau, said in an interview that in recent years, Liuyang City has eliminated nearly half of the fireworks and firecrackers production capacity, and the safety management is lagging behind.
With the gradual improvement of the safety performance of fireworks and firecrackers production in Liuyang area, as well as the relaxation of some site policies, the follow-up Liuyang fireworks and firecrackers will also burst out with new vitality. Of course, from the production end to the sales end, from the transportation end to the brand end, the market still needs to be continuously improved. But it is undeniable that this Spring Festival, there will be more people saying goodbye to the old and welcoming the new in the bright fireworks and enjoying a rare good time.