keep your prices intact for more than 20 years

There are two almost unquestionable realities: that almost everything is made in China and that everything has gone up in price (except the televisions). However, these two maxims go hand in hand with the mundane lighter, the one we use to light birthday candles, the barbecue or even a cigarette… to who still smokes today. Because the bulk of global lighter production is no longer manufactured in China, it is concentrated in a single city.

And that city has achieved something very difficult: maintain the price of a lighter in one yuan (about 12 euro cents at the exchange rate) for more than two decades.

The resistance. Large brands such as BIC, Clipper or Zippo have localized and more or less dispersed production: the French BIC has in France its main plant for Europe, in the United States for the North American market, for South America has plants in Brazil and its large plant in Mexico; the catalan Clipper manufactures in Spain, China and India and Zippo boasts of being “Made in USA” while almost all of its production is in Bradford, Pennsylvania. It doesn’t matter, they are an absolute minority.

Where Christ lost the lighter. 70% of world production is in Shaodonga city in Hunan province (China). Which started at the end of the 20th century as a wandering industry in search of low costs came to stay in Shaodong, turning it into a highly specialized technology giant that exports to more than 120 countries.

According to XinhuaShaodong produces more than 100 billion lighters a year, with data from 2023. The People’s newspaper details (the official newspaper of the Central Committee of the Communist Party of China) that in 2022 Shaodong supplied 3.52 billion lighters to the entire world. With this enormous production volume they have managed to keep the manufacturing price almost stagnant for more than 20 years thanks to automation.

Why most come from China. The short answer is economies of scale. A lighter essentially requires metal parts, plastic, pressurized gas and an ignition mechanism, more than 30 parts and various techniques such as flame control and ignition intensity. For a few cents it is only profitable if you produce millions a day in a concentrated industrial ecosystem made up of by 87 companies where you have everything you need nearby.

Yang Zhiyong, design engineer of the largest local lighter producer in Shaodong synthesize How has the evolution been: “Before, 1,000 workers were needed to produce a million lighters manually, now with automation the same production is achieved with just a few people. (…) Thanks to automation and technical improvements, we have managed to reduce costs to a minimum.” Specifically, from 0.1 yuan to 0.015 yuan. And yes, he acknowledges that his iconic one-yuan lighters are still lucrative.

One lighter, one yuan. Lighters are small and technically simple gadgets (although everything has its secret and its room for improvement and innovation), but there is a trick to the fact that the retail price of disposable lighters has remained unchanged despite the competition and the increase in prices of materials and labor: industrial innovation and economy of scale.

In 2002 was founded Shaodong Lighters Association to unify the industry, encourage innovation and standardized pricing in a collaborative, win-win approach. Because lighters are small, but their market is big.

There is room to surprise and innovate. To stay at the forefront of the industry, the municipal administration has created an institute for smart manufacturing technologies and local companies are exploring new markets, especially in developing countries. Likewise, there are companies that strive to give a twist to the design of the lighter, providing a functional and cultural touch. In fact, Yang explains “These culturally influenced designs have found a receptive market in Europe and Asia,” Yang said.

They have a plan B. Rising raw material costs, global competition and stricter environmental regulations may sooner or later lead the industry to migrate to other cheaper regions such as Southeast Asia. In this case, Shaodong aspires to sell knowledge: product development, training and after-sales services.

In Xataka | The rare earth capital of the world is making gold thanks to them. And it is also being poisoned

In Xataka | China was the great polluter of the planet: now it is emerging as the first “electrostate” in history

Cover | Julius Drost