Company dynamics

No match for traditional e-cigarettes

  Electronic cigarettes have replaced traditional alcohol and tobacco as one of the most popular gifts during this year's Spring Festival.

  One consumer who gave e-cigarettes to his father as oil rigs a gift told deep web that he chose them because he had heard they contained organic nicotine salts, which are healthier than traditional nicotine and do not produce tar because they are heated rather than burned.

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  On the eve of the Chinese New Year, the deep web visited several e-cigarette shops in Beijing's jinbao street, beiping village and near the international trade center.Many brick-and-mortar e-cigarette shops in Beijing opened in the second half of 2018, selling domestic brands, according to shopkeepers.

  According to "deep net" observation, the electronic cigarette is basically divided into two kinds of oiling and smoke bomb, relative to the smoke bomb model sales faster, shop owners are also more willing to sell smoke bomb model.Most were young people, with some saying they were buying them for their own use and others saying they were buying them to give to relatives.

  But whether online or offline, shopkeepers are said to production glass pipes technology company, its establishment in 2019 of electronic cigarettes don't know, although some shopkeepers said heard these electronic cigarette brand, but won't consider selling these emerging electronic cigarette brand, one (below) the shop owner directly even said, "these brands have through online channels and contacted us, but the brand purchase price much higher than the traditional electronic cigarette brands, and the lack of a fixed user community."

  The e - cigarette owner told deep web that the most important profit margin of e-cigarettes is in the cigarette, traditional e-cigarette brand cigarette bombs have many fixed user groups, emerging e-cigarette brands do not have an advantage in this respect.

  According to the deep net, China is already a big country of e-cigarettes, with the world's largest production of smoking devices, bombs and oils.According to the data, about 90% of the world's steam e-cigarette products and accessories are produced in China. Three of the top five e-cigarette brands in the us market are produced by Chinese e-cigarette companies, while the top five open e-cigarettes are all produced and exported by Chinese companies.Other data show that global sales of e-cigarettes and heat-free tobacco continue to grow rapidly.According to world tobacco development statistics, global e-cigarette sales reached us $12.054 billion in 2017, up 18.50% year-on-year.Global sales of non-burning tobacco reached $5.03 billion, up 135.60%.According to euromonitor international, global sales of atomized products will reach $32.373 billion in 2020, up nearly 90 percent from 2017.

  But the field is not entrepreneurs look a blue ocean, in 2017 China cool water pipes electronic cigarette market turnover has more than 25 billion yuan, what is more important in China, electronic cigarette regulation is almost in a blank state, most of the electronic cigarettes in product standards, quality supervision and safety evaluation of "3 without" status, according to the "deep web" observation, a lot of electronic cigarettes don't even have a "harmful" designation of related or similar to remind.

  For these entrepreneurs, a thick wall will stand as the country tightens its grip on e-cigarettes and the national team invests in the domestic market.Since 2013, the national tobacco administration has set up a leading group for new tobacco products, a major project for new tobacco development, Shanghai new tobacco products research institute and the industry new tobacco products equipment engineering research center.At the 2018 national tobacco work conference, the director general of the national tobacco bureau said in a report, "we will pay close attention to the new trends in the tobacco market, strongly support the accelerated development of cigars, actively research and develop new products such as e-cigarettes, tobacco products with tobacco in the mouth, and non-burning tobacco products when heated.

  Although at present the country does not have to the domestic heating does not burn the tobacco product industry to issue the specific regulation policy, but China tobacco company, the private enterprise can research and develop and produce the heating does not burn the equipment, China tobacco company can develop the smoke bomb.

  The electronic cigarette industry many startups shanzhai mobile phone companies like more than a decade ago, electronic cigarettes atomizer, batteries and other production difficulty is not great, the key is in the production of smoke bomb factory, could domestic synthetic nicotine salt has no more than 10 research and development ability of enterprises, smoke flare pricing power and profit base in the hands of the factory.

  However, for them, it doesn't matter whether they can perfect the industrial chain. For example, the most profitable point atomizer of current e-cigarette startup companies generally costs no more than 30 to 50 yuan, and its technical content is very low, but the price is often more than 300 yuan."The most important thing about investing in e-cigarettes is a quick cash return," one investor in the sector told the deep web. "it would be nice to have a chance to grow in the future, but the return is worth it."


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