The end of the year is coming again, strong sales season is preparing for New Year.
For nearly a year, haze, Yichang bridge collapse, the implementation of the new national standard……., In the New Year, market suffered cold reality, in the first half of this year, production companies hesitant to push slow production on track time, operating companies elongated order time, a wait and see market pessimism spread apart in the industry.
A person who is in charge on the company even for enterprises to develop a “three no”: no additional investment, not to scale, keeping their children not involved in fireworks industry.
However, after concerns that with the approaching Chinese New Year sales season, the temptation of the season and hope for the market, being watered down with pessimism.
“According to past experience, the Chinese New Year in January, sales was worse. The New Year on February sells better, this year the Chinese New Year is January 31, with a lot of corporate restructuring, productivity declined, personal opinion, cannot get the case goods during New Year is estimated to occur. “in front of the order, as stated in another company official said,” the production, the overtime “, the factory will still work overtime.
Producers only keep old customers’ orders, do not accept new customers order
November 6, in the warm sun of late autumn, one of town call jingang in Liuyang City, busy manufacture but orderly, six workers were busy loading, in the field next to the floor, there are four parked vehicles waiting for loading.
According to the person who is in charge of the factory, although the market situation is bad, but because of its own products in the market has a mature brand influence, this year the amount of orders on the first eight months are close to the amount from last year, after the summer holiday, the enterprise became very busy.
” last year has Leap month, the summer holiday unlike this year so long, compared to last year, the factory production time nearly two months less than last year, while orders increased by about 20%.” In order delta front, which companies in order to ensure the old customer orders, while rejecting some of the new order.
“This year compared to previous years, although the market environment has changed, because of industrial restructuring and upgrading, and the introduction of a new national standard, on the whole situation, production will decline. Together with some other main producing capacity is also reduced, as this year’s market sales provides a buffer zone. “within the industry a professional manager who predicted, in the past of the end of year could not get the goods phenomenon will appear this year, overall sales will not have a big decline.
Operating companies into one month ahead of the peak of the transfer cargo
In the visiting, according to the bullish market this year, there is more people than the above-mentioned producers, one of southwest province, a provincial company executives said in an interview also expressed a similar view.
“From the collection on market information, we can see 2 inches less than usual products, on national standard products are increased.” The executive said, in addition, the local market needs did not change a lot.
Consider, in the end of this year may be tight supply, transportation is relatively concentrated, the overall bullish, beginning in September, the operating company began producing enterprises are concentrated from Liuyang transfer cargo, “at past years before October 1, shipped only a few hundred million, compared to last year, this year the shipments grew by 50 percent. ”
Information obtained from the logistics channels also seems to confirm the argument of the executive: the National Day as boundaries, from Liuyang sent to the province than before the National Day, the logistics costs rose 3,000 yuan, while the increase for the same period in previous years, logistics costs was between 1500 yuan and 2,000 yuan. “We usually say that the Chinese New Year peak selling season is September to December, but in previous years, transfer cargo concentrated period is from November began, after the National Day this year, the company operates transfer cargo will enter the concentrated time.” Liuyang Fireworks Bureau Market Branch relevant responsible person said.
some relative news
Much inventory do not know how to do
In March of this year, the implementation of the new national standard. Product type, packaging and specifications had a big adjustment.
Currently, the industry also have some rumors about the State Administration of Work Safety is in the northern province to do some unannounced visits, the investigation found a number of large-diameter, large doses of the product, it is said also requires companies to haulage out all the products from warehouse which is in stock companies operating in the province.
“It seems that the state of play hardball over product specifications, in the long run, we also maintain to help fireworks industry developing, however, some products in warehouse were made before the implementation of the new national standard production, now the factory are afraid to sell, so the factory stocks more products, our current production has been effect, how to do this? “this is from a company’s production director said.
Early delivery period does not mean that the market recovery
Production companies and operating companies changed pessimistic in the first half, are excited to prepare for the upcoming season, the fireworks industry weakness are long gone. Then how the market situation is going to be?
“Overall, it is too early to say sales booming.” Several industry sources state, the company operates an early transfer cargo does not mean that the market recovery.
after the accident on Yichang Bridge, fireworks transport channel is jammed, many operating companies transfer does not arrive, the industry said, “personally think that might some of operating companies learned a lesson from this accident and transfer cargo ahead of time.” Secondly, this year the companies produce time is 2 months shorter than last year, orders production and transport is too concentrated, the early peak transfer cargo logistics strategy is also a stagger.
According to the current fireworks industry credit growth mode, the operating companies get payment for early transfer cargo are not many, “All goods are usually sold out before full payment. This year Liuyang companies participated order exhibition, the number of orders 20% more than last year, for enter into new markets businesses, business purchase and sale of the company’s products may be more stringent terms, the stockpile costs will be lower. If it is in full payment way, the operating companies’ transfer goods can be the greatest reflect to the market trends. ”
“Many people would think that goods sent to the company warehouse is flowing into the market, I do not think so, fireworks from producers to consumers need to go through the operating companies and retail outlets, some operating companies usually through extreme pressure to send goods to retail outlets, and it may be contrary to consumer demand. Additionally, reduced the amount of wind frugal buy, and environmental awareness letting fireworks discharge environment variables exist. ”
Based on this, a company in charge of the Eastern Liuyang person think that the industry this year will not recover to two or three years ago the situation like real production does not win and shipped not win, the market as a whole, the most optimistic is stay the same level with last year.