Company dynamics

Green glass pipe have a limited future under a red sea.(C)

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  The head of an e-cigarette company, who asked not to be named, told economywatch that the cost of cool water pipes is low and the profits are high, and they are optimistic about the future of the market.Traditional tobacco harm to smokers more and more obvious, more and more banned in public places, this is the stage in the development of electronic cigarettes, for consumers, popular iQOS heating  does not burn the disposable atomizer "electronic cigarettes" commodity prices can be accepted, personal appearance, flavor, texture, get the favour of young consumers, too, are indicators of consumption upgrade and improve quality.This is all a factor in future market growth.At the same time, with the expansion of the industry scale and sales continue to surge, e-cigarettes will also bring an impact on the traditional tobacco industry.

  Consumers have a different take on iQOS's new e-cigarette product.Recently, at the checkout counter of a green leaf import supermarket in Beijing's chaoyang district, reporters saw two avant-garde girls dressed in avant-garde clothing, seemingly born in the 1990s, choosing a new iQOS e cigarette product called GRAPEICE.One of the girls told reporters that buying the e-cigarette felt like a fashion purchase.

  Before the popular online comedy "strange coffee" was embedded in a mechanical cigarette, it had been popular among consumers and a group of glass pipes fans due to its appearance, fashion and smoke volume.By allowing consumers to experiment, consumers can get used to holding an e-cigarette in their hand and taking a sip from time to time, affecting their surroundings.

  At a smoke-free restaurant, Mr. Liu, who was smoking an e-cigarette, told reporters that as a consumer with a smoking habit, he mainly smoked traditional cigarettes.Buying e-cigarettes is new and you don't remember to smoke most of the time.

  For people with a long history of smoking, electronic cigarettes are difficult to replace traditional cigarettes, shi said.A lot of spending is for buying and playing, and it's hard to get into the habit of using e-cigarettes.At present, China's regulatory policies and relevant standards for e-cigarettes are still unclear. In terms of market, compared with the trillions of traditional tobacco market in China, the e-cigarette market is insignificant, and the future penetration rate will not be very optimistic to compare with the traditional tobacco market.

  The number pineapple glass pipe consumers in China is about 150 million to 2 million, accounting for only 0.47 percent of the total number of smokers, the reporters noted.

  According to statistics, in 2018, the main business revenue of Chinese enterprises above the tobacco industry reached 929.12 billion yuan, up 4.9% over the same period last year, and the profit of the tobacco industry reached 923.5 billion yuan, down 4.6% over the same period last year.

  According to shi, e-cigarette taxes can be ignored and cannot be compared with traditional tobacco.For investors, the future is not a long-term plan.

  According to statistics from the state administration of tobacco, the total tax revenue and profits of the Chinese tobacco industry in 2018 were 1.1556 trillion yuan, an increase of 3.69 percent over the same period last year.

  Some analysts believe that the national tobacco and tobacco industry giants will not sit idly by and watch their share continue to erode, and will do whatever it takes to suppress e-cigarettes.

  "Overall, there are too many e-cigarette brands in China," said shi. "China is already a" red sea "market, where it is difficult for companies to make a different sound, and the room for innovation and future momentum of e-cigarette products in terms of taste, appearance and experience is very limited."



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