2018 American Independence Day Fireworks Sales Season Series Report
Dec 24, 2018

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1. One data: What is the amount of Chinese fireworks and firecrackers exported to the United States?

1) A famous American media quoted by the Fireworks Bridge:

The United States is expected to import more than $900 million in fireworks from China this year (2018).

2) Data source: China Merchants Research Institute database

From January to May 2018, the export value of fireworks and firecrackers in China was US$300 million, down 0.3% year-on-year. Looking at the export value of fireworks and firecrackers in China in the past five years, the compound annual growth rate was -1.17%. 

3) worldstopexports data:

China's total export fireworks in 2017 was US$719.7 million, accounting for 85.6% of global fireworks exports. 

From the above: China's fireworks and firecrackers export to the United States, 300 million US dollars is credible, but the United States should be based on retail prices, that is, 900 million, or 1 billion dollars, or even higher.

 

2. In the first half of 2018, affected by various factors in China, the US independent daily sales season, the fireworks delivery rate showed a large decline. This has caused a major impact on some US fireworks importers, coupled with rising costs and other factors, may accelerate industrial transfer. Although currently more than 90% of US consumer fireworks are imported from China, the future will not be ruled out.

 

3. The US fireworks export market is dominated by the credit sales model for China. In the next few years, this model is not expected to change fundamentally. In particular, the current US market is gradually eating big fish, and for Chinese fireworks manufacturers, it faces more difficult choices: orders are large, and risks are also increasing. If you don't do the credit sales, your own pressure is there, and some factories are only able to manage the factory.

 

4. Most of China's fireworks export enterprises use modern management tools and facilities, but the management model and thinking are still based on family workshops. They cultivate their own one-acre three-point land and lack strategic business thinking and team for the future. Effective support.

There is no relevant department or agency in the entire industry to study the US fireworks market, conduct predictable policy analysis, and how to deal with trade disputes in the future. So far, the basics are still groping by the company itself, and the relevant organizations that have been established have not seen strong support. This is the United States Fireworks Association NFA, and the American Fireworks Association APA is worth learning, the latter directly involved in the development of American fireworks standards. In the 2018 Independence Day sales season, APA has done a lot of publicity work, and has also maintained close communication with agencies such as the US Federal Government such as CPSC (American Consumer Council).

 

5. Tariff and USD exchange rate fluctuation risk, worthy of attention in the industry


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