Industry news

Pessimistic. Do electrons want to be cold?

  The cold water was a little caught off guard.

  For the first time, qiyun reached out to many people, including major e-cigarette brands and their investors, as well as mainstream e-commerce platforms.Most of them said they had just been informed of the news and would strictly comply with national regulations glass bongs and discuss follow-up measures.

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  The latest move by the state tobacco monopoly administration and the state administration for market supervision is an important milestone in promoting the protection of minors in the e-cigarette industry, according to a statement by e-cigarette brand RELXYuechi.

  Investors involved in the e-cigarette brands told Mr. Qian only that they would not comment until after the launch.

  A month ago, the time line for e-cigarettes in the United States returned, and the country faced an unprecedented crisis.Dozens of people developed lung disease after smoking e-cigarettes.The e-cigarette giant JuulLabs is under investigation and the supermarket chain wal-mart has banned the sale of e-cigarettes altogether.For a while, e-cigarettes were the target.

  In addition to the United States, in the face of a threat to people's health electronic smoke, especially the influence on adolescent health, most countries have keep up with the massive "tobacco control act", and are actively taking steps to review the electronic cigarette oil rigs is scientific and security, some countries even directly to ban smoking in a formal document.

  A dark mist of tension and confusion hung over the once beloved.After all, e-commerce is now the main channel for e-cigarette sales, zhao tianyi, an e-cigarette entrepreneur, told qi yun.Combined with the impact of e-cigarette control in the United States and other overseas countries, the export situation of e-cigarette is not optimistic.

  Capital matures and grows savagely

  In fact, in terms of market prospects, penetration of e-cigarettes in the Chinese market is less than 1%, much lower than in the U.S.Meanwhile, China has more than 300 million smokers.The e-cigarette market has great potential without notice.

  Although e-cigarettes for the domestic market are still in their infancy, the e-cigarette market has started to boom with the influx of money, and many well-known top venture capital has started to enter the game, trying to grab market share.

  According to incomplete statistics from, there were more than 30 investment cases in the domestic e-cigarette industry in the first half of 2019 alone.According to disclosed investment statistics, the total investment is at least 1 billion yuan, of which cool water pipes many new faces are pouring into the track.

  For example, luo yonghao, an online celebrity entrepreneur, participated in onoko cigarettes.Huang yu, a former Apple executive in China, founded the e-cigarette brand yuntun and received tens of millions of yuan in angel funding.Flow Fulu completed a $50 million financing round;Moti completed round A financing of $50 million;LINX announced the completion of its fifth round of financing.

  For the domestic e-cigarette market, there is no appropriate time and geographical factors abroad, that is, large production and low cost.

  As the world's largest producer of e-cigarettes, China accounts for more than 90 percent of the world's total e-cigarette production.China produced 1.205 billion e-cigarettes in 2016, and the market forecast for e-cigarette production in 2019 is 2.898 billion, up 140 percent from 2016.

  The high production has also created a mature industry chain, which is very mature in China."Each link of the e-cigarette industry chain can be outsourced, and the technology content is very low.You can build a factory to assemble it yourself, and you can get into the arena for $1.8 million.

  Even if the minimum investment is less than 100,000 yuan, the product can be produced in 10 days.There is no doubt that ten thousand yuan profit is an important driving force for the rapid water jet pipe cleaning expansion of the e-cigarette market.

  Driven by profits, the market is also becoming hot.

  As an alternative to smokers, e-cigarettes are highly malleable.Many e-cigarette brands are mainly aimed at young people, with personalized appearance, but there are also a variety of flavors to choose from, and even celebrities are invited to speak without hesitation, which greatly stimulates young people's consumption of e-cigarettes.

  According to the data, China's e-cigarette market grew rapidly from $61 million in 2012-2017 to $677 million in 2017, an increase of $616 million in the past six years, with an average annual compound growth rate of 62%.

  The rapid growth of the e-cigarette market has also led many domestic e-commerce platforms to accept e-cigarettes.Since the beginning of this year, platforms such as Meituan and Tmall have changed their business scope and added new e-cigarette online sales.

  In fact, e-cigarette sales in China are mainly online, including e-cigarette brands' online stores and e-commerce platforms, which account for more than 80 percent of sales.

  With the announcement of the "electronic smoking ban", in the "sunrise industry" of electronic cigarettes, was suddenly hit with a blount.


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