water pipes life and death ': the madness of the trillion-dollar market
Will water pipes die?
This is not alarmist.Recently, shenzhen has officially put e-cigarettes under tobacco control.Thousands of miles away, San Francisco has become the first city in the United States to ban the sale of electronic cigarettes.
According to incomplete statistics, 42 countries and regions in the world have banned or restricted the use of e-cigarettes in public places, and Hong Kong, Macao special administrative region, hangzhou and nanning have banned the use of e-cigarettes in public places.
But the industry would rather hear a rich "$2 billion" story.In December 2018, Juul, an e-cigarette company based in San Francisco on the Pacific east coast, paid between $2bn and 1,500 employees.Similarly, each employee has a ferrari limited edition convertible to overtake monza.
The mood of wealth quickly spread to China, as far as the west coast of the Pacific Ocean.Liu jihui, CEO of shenzhen refined salt technology co LTD, told times finance that China has 350 million smokers and, despite the extremely low penetration rate of glass pipes custom, is now the world's fifth largest and fastest growing market.
E - cigarettes could account for 10 per cent of total tobacco sales and 15 per cent of profits by 2020,? Says a Goldman Sachs report.It is widely believed that there is a trillion market for e-cigarettes.No wonder the average entrepreneur is rushing into his pocket before he has had time to think.
"Don't you see yuichi in the crazy store?" yao, a veteran e-cigarette entrepreneur, told time business.Yuecheng e-cigarette is the product of shenzhen wusheng technology co., LTD., one of the well-known e-cigarette brands in China, which completed its first round of financing of 38 million yuan in June 2018.
The e-cigarette industry seems to be sending a message - as Hammer 001 employee zhu xiaomu has emphasized on various occasions: "I don't want to miss the next drop."The frenzy is reflected in the data, with 248 new glass pipes for sale companies added in the first three months of 2019.
But the market suddenly turned cold.This year's "3.15" party will be named after e-cigarettes, which release harmful substances. Long-term smoking can also lead to a dependence on nicotine, but they will also sort out countries' policies to ban e-cigarettes.Less than an hour after the broadcast, jd.com, Tmall, suning and other major e-commerce platforms blocked the key word "e-cigarette."
The people who brag about disrupting the market.""The market is not performing as well as expected," li ocheng, bo's founder, who invested 5m angels in salt refining technology as early as 2016, told Time Finance And Economics.
He says the market is growing at about twice his rate, well below the three to four times he expected."People who were bragging about a trillion e-cigarettes a year ago and saw a tenfold increase a year ago are finding that growth is not as good as expected."Those who give high valuations think they are stupid.
It's easy to overlook that e-cigarette entrepreneurs also face formidable competition from traditional tobacco giants.Even if the policy becomes clearer one day, these traditional e-cigarette brands will benefit.
A grim answer may be announced before the end of the year."Many companies are not optimistic about the second round of financing and will know by the end of the year," li said.In his view, the so-called trillion market, before the policy is clear, e-cigarettes is a 37.5 billion market.
But the glass bongs pipes novice seems more concerned about the $2 billion prize myth.Fang hui, CMO of platinum (shenzhen) technology co LTD, told times finance that even if e-cigarettes were controlled as a drug, there was nothing to worry about.Because the market is still there, companies whose products are not up to par need extra investment to catch up, making it harder for them to survive.Companies that invest in r&d costs and meet high standards will be able to enjoy the market.
This is the state of e-cigarettes in China: on the one hand, it's crazy about the trillion-dollar market, on the other hand, it's chaos and fear in the face of a cold winter.""The people who want to make a quick buck depend on who is willing to bet," said the industry insider, who asked not to be named.
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