Fireworks industry is one of the most challenging industries that are dominated by China, Liuyang factory being one of its biggest manufacturers. There is no doubt that fireworks industry has been in existence for a very long period now and it is continuing to grow. In the present day there is a considerable demand for fireworks in the entire globe, if were Jerry Yu, I would have accepted the offer. There are various reasons why anyone should invest in fireworks industry because of its profitability. Liuyang factory currently dominates the entire Canadian market, the Chinese market as well as the global market. In fact, currently, over 60% of the worldwide market is dominated by the Liuyang Company representing China in the fireworks global market.
Additionally, there is an increasing demand for fireworks in the global market even though there are restrictions in some countries. Countries with strict regulation on the use of fireworks and firecrackers are less as compared to the global market demand for fireworks. Most importantly, most of the current events such as weddings, cultural ceremonies, and New Year celebrations depend on fireworks and firecrackers to make events colorful. This is a clear indication that the fireworks industry will continue to develop.
Increasingly, the fireworks industry has continued to make use of the technology for a couple of centuries now.From the traditional mixing of the ingredients to the use of machines to make production work easier. Furthermore, technology has enabled the fireworks industry to improve its production regarding quality and quantity of the production. Additionally, fireworks industry is among the key economic drivers of the global economy, in this regard, governments all over the world are making sure that they support it to boost their economy. However, increased competition and the production of low-quality fireworks products remain to be the main challenges as well as stringent regulations in some countries.
Liuyang factory can still do best in the fireworks industry; however, there are a few areas that the company has to improve. Firstly, complying with government regulation, this is so beneficial particularly in countries that are strict on the use of fireworks. This will give Liuyang Company an upper hand in those markets as well as create a sustainable client base across the world rather than getting so many bans. Secondly, Liuyang Company should make sure that it collaborates with its new customers concerning prices and marketing of the product. Ordinarily, many fireworks producers are not ready to listen and follow up with their suppliers and consumers when it comes to the use of the product its quality as well as the competitions in the market. In this case, I would advise the Liuyang Company to take that advantage of that gap in the industry and make a lot of additional sales as well as increasing their global market share.
Furthermore, to make sure that they stay ahead of the competitors, Liuyang Company should make sure that it improves its quality and price. The quality of the fireworks would make a huge difference in terms getting new customers and remaining relevant in the market. However, the company should ensure it gets affordable but high-quality raw materials which will help in reducing the market price of the fireworks. This will be the best mitigation measure to counter the ever-increasing number of new competitors in the fireworks industry.