5 ms·

Why can't other companies start, which produce fireworks?

• tgsovlerkhgsel 8y ago
  If they start in China, it doesn't change the shipping problem. If they start elsewhere... I guess the 18k per container that Mr. Ding gets from each sale is less than the price difference between Chinese-made and non-Chinese-made fireworks...
• drenvuk 8y ago
  His price will most likely just come under what it would cost to produce somewhere else. Anyone else in China has to deal with laws and regulations. If the news article is correct he's essentially fixed the rules so that he has the best position out of anyone who could otherwise compete. - He has a permit - He has economies of scale - He owns the logistics and shipping - He is the defacto controller of the port considering how scared people are of him - He's cutting his costs of operation to a minimum by moving everything under his control since there are no middlemen siphoning of money for their own profit. The nature of other markets like the US means the cost of production is prohibitive in most cases. This is literally the playbook on doing business from time immemorial. Check out the billonaire cheese guy for more examples of good positioning and secretive ceos. https://www.forbes.com/sites/chloesorvino/2017/05/23/james-leprino-exclusive-mozzarella-billionaire-cheese-pizza-hut-dominos-papa-johns/#ad2aca84958c https://www.forbes.com/sites/chloesorvino/2017/05/23/james-l...
• sudouser 8y ago
  thought the same, and if not made in USA, at least mexico being so close could be somewhat competitive, right?