The rush and dilemma of water well pipe
He didn't get a chance to smoke until late last year.As a result, he became a co-founder of whale smoke.Another shareholder is kong jianping, co-founder of jiannan yuanzhi, the second-largest maker of digital currency machines.At the time, the price of bitcoin was falling from a peak of nearly $20,000, wiping out nearly 70 percent of its market value.Whale smoke also appeared at the annual meeting of jiannan yuezhi.
In July of that year, e-cigarette startup Juul raised $650 million from hedge fund and venture capital firm Tiger Global, valued at $15 billion, making it the sixth-most valuable startup in the U.S. -- behind only Uber (Uber) and Airbnb.At the time, Juul dominated the lookah dab rig market by more than two to three.
By the end of last year, Juul, a three-year-old e-cigarette company, was valued at $38 billion.
Since the beginning of this year, more and more entrepreneurs have poured into the field of e-cigarettes.In January alone, Smartisan's top employee, zhu xiaomu, his uncle CAI yuedong, founder of micro-media holdings chairman li yan, and others entered the venue to launch their own e-cigarette brands.
The recently popular RELX was introduced earlier.In January last year, ying wang set up FOG core technology and completed the series A financing of the ambassadors on June 25 last year and March 1 this year respectively.Investors include IDG Capital, source Capital, Sequoia Capital and uplink Capital.RELX is currently valued at $800 million.
It's a multi-billion dollar market that entrepreneurs are fighting for.In 2017, global revenue from traditional e-cigarettes (excluding heated and unlit e-cigarettes) was $12 billion, up 20 percent year-on-year, according to the research journal of soo-woo securities.China's lookah glass bongs market is expected to exceed $800 million this year, according to the China business research institute.
Low threshold behind the price of smoke and profits
This is a quick start, but it is also an untapped market. "China's electronic cigarette production is expected to more than 2000 cigarettes. According to the future industrial institute (InstituteofExternalIndustryResearch), in 2018 for $2 billion, up 35% from a year earlier.By comparison, however, e-cigarettes are less than 1 percent permeable. China has one-third of the world's smokers, but less than one in 10 of the world's e-cigarette consumption.This gives e-cigarette entrepreneurs a chance.
Qiu told the IT times that the core technology of e-cigarettes lies in the development of atomization core technology and atomization solutions. The threshold is not high, but more in the industrial details, such as the smoke bomb oil spill.However, most e-cigarette production in China is based on ODM and OEM business models, the institute of future industry said in a research paper.
Some in the industry say that bink's e-cigarette and RELX's fogging core manufacturers are the same, and that the smoky oil is something the two companies are working on.This also explains the serious homogenization of e-cigarette products to some extent.
On the other hand, low threshold and serious homogenization are profiteering.Industry insiders told reporters that the price of an e-cigarette is generally between 200 and 300 yuan, which is relatively high for ordinary consumers, while the price of an glass water pipes for sale online is about 100 yuan.
"Right now, e-cigarettes are losing money."If regulated later, Mr. Qiu said, e-cigarettes might have to pay taxes on cigarette oil and terminal taxes, which would harm the interests of channel agents.
Interestingly, the reporter inquired about the same kind of e-cigarette on the second-hand platform such as xianyu and found two different prices.One of RELX's e-cigarettes, for example, is priced at 299 yuan at other tmall flagship stores, while xianyu's sellers are offering a new set of products for 159 yuan.As far as the above industries are concerned, xianyu's low-cost sales are not managed, which is equivalent to the grey promotion of enterprises.But some companies will strictly control the price of the channel.
'the price war has already begun in the e-cigarette industry,' Mr. Lin said.Product homogeneity is serious, technical differences are limited, in the initial stage of capital inflow, price war is inevitable."To break through in this business, you have to play a role in the brand and the market.""He added.
Qiu previously said price wars in the e-cigarette industry would start in 2019.Cutting prices is a quick way to sell e-cigarettes."As the number of competitors increases and competition intensifies, the subsidy channel will become a common way for e-cigarette companies.
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