When e-cigarette compliance is in progress: fruity renovation, fine operation and transformation exploration

When e-cigarette compliance is in progress: fruity renovation, fine operation and transformation exploration

There are e-cigarette brands that are trying to "sprint" overseas markets.

After banning the sale of fruit-flavored e-cigarettes for four months, the market has undergone some new changes.

According to the investigation of the reporter from Shell Finance, there are still underground markets selling fruit-flavored e-cigarettes after the ban. In response to the market chaos, the National Tobacco Monopoly Bureau carried out the rectification of flavoring electronic cigarettes such as "milk tea cups" and "coke cans", investigated 593 cases of various kinds, investigated 188 people for criminal responsibility, and seized 723800 pieces of "milk tea cups" and "coke cans", and severely cracked down on such illegal and criminal work according to law.

Many e-cigarette practitioners said, "With the further strengthening of the regulatory crackdown, the original fruit-flavored users will either quit the e-cigarette users or change to the new national standard users, which will be greatly improved or even eliminated."

In addition, some e-cigarette enterprises have also launched new consumer goods business attempts, such as chewing gum, coffee and other related consumer goods. At the same time, the overseas electronic cigarette market is still the focus of many brands.

Various brands of tobacco-flavored electronic cigarettes sold in a shop in Beijing. Photographed by Sun Wenxuan, reporter of Shell Finance

Fruit-flavored electronic cigarettes appear in the underground market

Regulators vigorously renovate

Fruit-flavored e-cigarettes have been banned from sale. Fruit-flavored e-cigarettes can still be found in some underground markets. In response to this situation, the regulator has made great efforts to rectify it.

Both the Administrative Measures and the new national standard of electronic cigarettes, which were implemented last year, prohibit the continued sale of fruit-flavored electronic cigarettes in the domestic market. However, the reporter visited Chaoyang District of Beijing many times and found that some stores would take out the fruit-flavored cigarette bombs hidden under the counter after the customer inquired. The price of these fruit-flavored cigarette bombs before the ban was mostly 99 yuan/box, and the price of individual fruit-flavored cigarette bombs was 180 yuan.

In addition, disposable fruit-flavored electronic cigarettes such as "milk tea cup" and "coke can" with a retail price of 129 yuan/piece have also appeared. Some young people choose to buy this "milk tea cup" and "coke can" disposable fruit-flavored electronic cigarette that can smoke 5000 mouthfuls.

As for the source of fruit-flavored cigarette bombs, one shopkeeper said that it was the stock before the ban on October 1 last year. "There is no need to buy it after it is sold out, because no one has produced it." Another shopkeeper told the reporter that a certain fruit-flavored electronic cigarette in the store was originally for export, but now there are channels to get it, so it is being sold. However, Liu Jie, the head of an e-cigarette brand, told the reporter that the so-called exclusive export is only an excuse for some small factories to escape the attack. The production of "coke cans" and "milk tea cups" are all customized. A large or small business can save an order and make a simple logo icon. Once the deposit is paid, the factory can start. "These unlicensed products have great potential safety hazards, and battery explosion and impurities in smoke are the most common problems."

In addition, the reporter also joined several e-cigarette WeChat groups. Every day, wholesalers from all walks of life are selling various types of fruit-flavored cigarette bombs. The wholesale price is as low as 20-60 yuan/piece, and one piece can also be issued. However, many insiders also reminded that the authenticity of the goods in the hands of such wholesalers is difficult to distinguish, and the safety and health risks are unknown. The reporter consulted a wholesaler as a store dealer. When talking about the counterfeit products of a certain brand, he roast that "they are all rubbish. A small factory has only five tastes."

The Beijing News Shell Finance reporter noted that in recent years, many local departments have launched a series of actions to crack down on illegal operation of electronic cigarettes. According to chinanews. com, on January 6, more than ten policemen from Zhengdian Police Station of Jiangxia District Branch of Wuhan Municipal Public Security Bureau recently went to Humen, Guangdong, and found more than 380 illegal electronic cigarette products of more than 200 categories, with a value of nearly 10 million yuan.

It is understood that in the past four months, the State Tobacco Monopoly Administration has dispatched 226900 law enforcement inspectors and inspected 121500 sales outlets on the spot. According to the National Tobacco Monopoly Administration, 363 cases of selling e-cigarettes to minors, 115 cases of operating e-cigarettes without certificates, 593 cases of "milk tea cups" and "coke cans" were investigated and dealt with, 84 criminal cases were involved, 188 people were prosecuted, 723800 pieces of "milk tea cups" and "coke cans" were seized, with an amount of 507 million yuan, and 373 e-cigarette sales outlets and 27 vending machines were cleared around primary and secondary schools and kindergartens, Delete 1471 links of various violations.

Li Yu, the head of an e-cigarette brand, said, "The regulator launched a special crackdown at the end of last year, which has been cracked in Shandong, Jiangsu and Henan. Over time, with the further strengthening of the regulatory crackdown, the original fruit-flavored users will either quit the e-cigarette users or turn to the new national standard users, which will be greatly improved or even eliminated."

The types of tobacco smoke bombs continue to increase

Further refined operation of cigarette poles

Compliant electronic cigarettes on sale. Photographed by Sun Wenxuan, reporter of Shell Finance

The reporter of Shell Finance and Economics of Beijing News visited some markets in Chaoyang District of Beijing and noticed that many electronic cigarette brands have launched many compliant tobacco-flavored cigarette bombs. Take Yueke e-cigarette as an example. In many e-cigarette stores, the reporter saw that there are more than ten flavors of its tobacco flavored cigarette bombs. Compared with the increase in the price of electronic cigarettes in November last year, the tobacco flavors of many brands have been enriched.

There are also more differences in the price of different cigarette bombs of the same brand. Take Yueke as an example, the price of Yueke cigarette bombs in the above store includes 109 yuan, 129 yuan, 149 yuan and 199 yuan. However, the clerk reminded that the overall taste difference of tobacco smoke bombs is very small. "Only more experienced smokers can taste the subtle differences in taste levels of different smoke bombs."

Zhang Wei, the head of an e-cigarette brand, told the Beijing News Shell Finance reporter that the overall price of e-cigarettes has risen, and the competition among various brands has also begun to differentiate, mainly in terms of pricing strategies. At the same time, some brands are trying to differentiate products. "The high-priced cigarette rod is an example." However, in his view, after last October, all the e-cigarette channels were included in the tobacco system, and the marketing activities were conducted in full compliance with the rules of the tobacco industry. Therefore, it is difficult to define this part with innovation.

Li Yu, the head of another e-cigarette brand, told the reporter that adjusting power and displaying power are also traditional functions, but the technology has shifted to the new national standard platform. "At present, we are still considering the basic version, but the personalized version and high-end version have also been planned to be launched to meet the needs of more users as much as possible."

Zhao Yangbo, co-founder of the electronic cigarette brand Shiwu, told reporters that the brand's actions in the domestic market were changed according to policies, users and the overall market.

As more licenses related to e-cigarettes are approved, some new brands of tobacco-flavored e-cigarettes also appear on the market. In an electronic cigarette store near Sanlitun, Chaoyang District, Beijing, the reporter saw many brands that were relatively rare in the market before, including Blizzard, Mose, Jigan, VTV, Kangcheng Yipin, Van Gogh, etc. The price range of cigarette bombs is 100-200 yuan/box, and the price of cigarette rods is 200-350 yuan/box. However, the shop assistant told the reporter that because there are few such brands in stock at this stage, the store generally does not provide trial smoking.

However, even though the functions of cigarette sticks are more and more abundant and the types of cigarette bombs are also increasing, the tobacco-flavored electronic cigarettes are still "not easy to sell" at present. A number of shop assistants told reporters that the customers who buy tobacco-flavored e-cigarettes at this stage are mainly elderly smokers, and young consumers rarely try. Another shopkeeper said, "Now there is only tobacco flavor left, and few people buy it. E-cigarettes (business) can no longer be done."

The entire electronic cigarette industry chain is currently in the compliance and adaptation period. Li Yu believes that most small and medium-sized sellers will disappear or transform in this process. "As far as I know, the stock of monopoly stores nationwide has dropped from about 100000 at the peak to about 10000. After the loss of fruit-flavored users, the users of the new national standard tobacco flavor have not been supplemented in time, and the user education process needs time."

The overall gross profit rate of the electronic cigarette industry is also gradually decreasing.

Compliant electronic cigarette. Photographed by Sun Wenxuan, reporter of Shell Finance

Transformation and exploration of chewing gum, coffee and other consumer goods

Strive for overseas markets

While the domestic market is under strict control, some e-cigarette brands are developing new products.

Weita Electronic Cigarette launched the chewing gum brand "Penqi". The relevant person in charge of the company told the BeijingNews Shell Finance reporter that the champagne product is the company's current priority project. "The Penang product was launched in 2021, aiming at the taste habits of different consumer groups, and launched a variety of products." The reporter of Shell Finance and Economics of the Beijing News noted that the company where the grapefruit electronic cigarette is located has also launched a new type of betelnut chewing gum.

There are also brands exploring other new consumption directions. Take Yueke as an example. Last April, it revealed two new directions - coffee and oral care. Before long, it launched its coffee sub-brand "Wake Up ON", which has settled in 5 stores in Chengdu so far. In 2022, Shiwu developed live broadcast clothing business and enterprise group purchase business (fruit cooked food). The reporter noted that Magic Flute also has a layout in coffee and brewing houses.

People in the industry have different views on the "inaction" of electronic cigarette enterprises. Zhao Yangbo said, "E-cigarette enterprises have little to do with whether they are E-cigarettes or not. Enterprises need to take responsibility, pay staff salaries and pay national taxes on time."

In the view of the above person in charge of Weita electronic cigarette, "some electronic cigarette enterprises are making chewing gum, others are making coffee and low-alcohol alcohol alcohol, all of which are consumer goods tracks.

While the domestic market of e-cigarettes is strictly controlled, some brands focus on the overseas market. Ao Weinuo, Secretary-General of the Electronic Cigarette Professional Committee of the China Electronic Chamber of Commerce, said in an interview with the Shell Finance reporter of the Beijing News that China's electronic cigarette industry is an emerging export-oriented industry, and its products account for 90% of the global market share. Zhang Wei told reporters, "The overseas market is an attractive cake. Chinese enterprises have advantages. We hope that Chinese enterprises can maintain and expand their voice in the field of electronic cigarettes globally."

"We set up the Overseas Business Department two years ago, because the domestic business was still good, the overseas sector was only auxiliary, and then the overseas market might be the growth center for a certain period of time." Li Yu told reporters that the company's overseas business benefited from the efforts of the team and the support of customers, and has achieved more than five times the revenue growth in a single month in the near future. "This has also strengthened our determination to base ourselves at home and sprint overseas."

Zhao Yangbo also said that the focus of the whole industry is obviously on the development of overseas markets, and Shiwu is also preparing for overseas markets. However, the overseas business of electronic cigarettes is not achieved overnight. Zhao Yangbo, for example, said that Shiwu's overseas business is also a steady process of promotion. Compared with other brands, the company will cooperate with some partners in the industry who have developed for a longer time to promote business. "At present, the competition in the overseas market is also fierce. At the same time, the product form is very different from that in China, and the channel end is also very different. It is not simply about exporting domestic products."