The inevitable policy risks of water supply pipe

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  Due to the short-term rise of the lookah seahorse coil market in China, there are no relevant policies and regulations.However, iQOS is not produced and sold locally, and it has passed a ban.

  In May 2017, the state tobacco monopoly administration (stma) issued a notice banning the sale of imported new cigarettes to retail terminals, pointing out that relevant products sold on the market enter the domestic market through illegal channels, greatly disturbing the order of the cigarette market.

  After the ban was issued by the national bureau of statistics, it had a direct impact on the original channel sales of heating and non-combustion products represented by iQOS.Now go to taobao to search for keywords, you can see the return results page almost all into iQOS peripheral products, no equipment and cigarettes.

  Before buying iQOS, li found that the product was currently only available in developed countries such as Italy, Japan and Russia, and was limited.There are no official sales channels in the Chinese market.

  In the end, he had to ask his friends to bring back an iQOS device from Japan through a purchasing agent.

  But right now, the risk of agents buying iQOS is also high.For example, in February 2018, Shanghai police seized eight people illegally selling "iQOS" e-cigarettes, involving 12 million yuan, and took criminal enforcement measures.

  As iQOS spreads, some factories that used to make smoke-filled e-cigarettes are turning to "heated, non-combustible" e-cigarettes to try to discourage iQOS at a lower price.

  In addition, for policy reasons, even if these lookah seahorse companies overcome process and quality control issues, it is not easy to bring them to market.

  Luo told pindo that the current production of "heating and not burning" e-cigarette devices, such as iQOS, is not a problem, and that it is difficult to strictly control tobacco in China, leading to factories that can produce sticks but not smoke bombs.

  The embarrassment prompted the e-cigarette makers to push for device development and foreign markets for tobacco bombs.

  At present, in overseas markets, the eu has included e-cigarette products in the "tobacco products draft amendment", which stipulates the specific standards for the sale of e-cigarette products.For the first time, the food and drug administration has issued new rules to regulate e-cigarettes.

  Simon believes that in the future, the online channel will remain dominant.Although offline experience stores can do some user education, offline stores have high costs and limited coverage, while online channels can reach more users at a lower cost."We believe that as long as the product and brand are excellent, the user education of smokers should be spontaneous.Can iQOS also gain a large number of users without an offline store?

  In fact, with the popularity of iQOS in China and the listing of some e-cigarette companies, some capital and investors are also paying attention to this industry.

  From 2016 to 2017, the unattended e-cigarette industry was disrupted and more and more people talked to them about investment, according to zhang and Samuel liu.

  There are three kinds of capital exposure at present.Second, recognize the huge potential of the industry, but worry that the risks of Chinese regulation have disappeared.The last is to be risk-averse.The vast majority are in the latter two camps, an industry that is attractive to capital but equally fraught with regulatory risk.Samuel liu said.

  However, in China, these are still blank.According to China's "tobacco monopoly law", tobacco monopoly refers to cigarettes, cigars, tobacco shrews, rolled tobacco leaves, tobacco leaves, cigarette paper, filter rods, tobacco tow, and tobacco machinery.This means that e-cigarettes are not part of the law in China.

  However, luo jia believes that the development trend of banging pipes when water is turned off is irreversible, with the entry of traditional tobacco companies, the future laws and regulations will gradually improve.

  At present, traditional tobacco companies are also starting to develop e-cigarette products of relevant brands, according to a person familiar with the situation.China tobacco has set up an e-cigarette research institute in Shanghai, and sichuan China tobacco has even launched a "wide and narrow" e-cigarette, similar to iQOS heating and non-combustion.

  While the policy risks remain unclear, there is no shortage of brave people facing what could become a trillion dollar market in the future, for whom the absence of a clear policy blow is already the greatest support.

  Just like the previous policy on online taxi and bike sharing, no news at this stage is the best news.""Says one e-cigarette practitioner.


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