Analysis of Chinese Fireworks Industry

1102 Words5 Pages
Macro-Environmental factors impinging Chinese Fireworks industry: Economic The fireworks market is faced with reduced prices, due to heavy competition causing profit margins affecting everyone. There has been an increase in level of income, better living standards and increased job opportunities to the workforce in emerging markets. This is good for the industry with increased demand, but disadvantage when skilled workers are lost to a different industry. The industry faces with constant increase in cost of labor and raw materials. Demographic The Chinese domestic market is faced with legal restrictions, cutthroat price competition, and local protectionism and hard to penetrate distribution channels. Bad debt is an increased concern in China which affects the whole domestic accounts receivable. The foreign direct investment has opened up in China lately. This is good as the fireworks industry is very attractive in China for investments in technology, automation, R&D and new factory. Political / Legal This industry is highly regulated in most countries due to the nature of fireworks and the dangers that can come with it. Regulation exists at all stages starting from the beginning of manufacturing, distribution and consumption phase. Maximum impact to safety is during production process and quality of raw materials used. Industry faced with ever increasing environmental impact and concerns globally. The legal system is not strong enough in China to enforce protection of intellectual property rights, copying of brand, identity and duplicates. Global Fireworks is manufactured not only China, it is also produced in other countries such as Taiwan, Japan, and Korea. Demand for fireworks has been steadily increasing for global emerging markets and developed markets making them the primary importers of fireworks. Traditionally Increased use of fireworks across nations

More about Analysis of Chinese Fireworks Industry

Open Document