China's electronic cigarette industry

China's electronic cigarette industry

The global e-cigarette industry is not only in the ascendant, but also growing at an extraordinary speed. But the rapidly growing variety of e-cigarettes is undergoing tremendous changes.

Thousands of electronic cigarette brands, large companies, small companies, old companies, new companies in general, major tobacco companies through mergers, acquisitions, opening new brands and other ways, actively participate in the electronic cigarette market consumer competition, in order to find a new growth point for future business growth. Small companies and small brands are constantly exploring new sales channels.

With the pursuit of a healthy lifestyle and the growing number of consumers who are willing to try new things, big tobacco companies have increased their awareness of the market. More and more soft promotion of television and movies has expanded the e-cigarette market, and the products are in full bloom.

China's e-cigarette industry has also entered a rapid development stage in recent years. At present, 90% of the global sales of e-cigarettes come from China's manufacturing enterprises, making China's enterprises become a decisive factor in the global e-cigarette industry supply chain. But behind the rapid growth, we have to say that behind the dazzling data, still hide a huge risk, while the electronic cigarette industry as a whole the future trend of development is also worthy of our thinking and attention.

1. About 90% of the world's nearly $3 billion sales of e-cigarettes come from China, but Chinese manufacturers have only received $500 million to $600 million in output value, which is due to the fact that manufacturing in China is still an export of low-value labor-intensive industries.

2. The fast-growing electronic cigarette manufacturing market has further attracted a large number of electronic processing enterprises to join in the transformation, the future competition between OEM and ODM will be further intensified, and the era of price, quality and brand will come soon.

3. For brand manufacturers, China's current manufacturing enterprises are only a processing partner, the world's largest brand manufacturers are more focused on how to layout the supply chain in different parts of the world, so tomorrow if there are more competitive processing points in Mexico, Brazil or elsewhere, then the Chinese manufacturing will be left behind. It is dangerous.

4. Manufacturing enterprises in China started early and have the advantages of time and people. But in the future, automated production will become the mainstream in the electronic cigarette manufacturing and processing industry, and the rising human cost in China will also bring uncertainties to the manufacturing industry in China. Will they repeat the mistakes of other manufacturing and processing industries in China?

5. OEM and ODM manufacturers have launched their own brands, but because there is no effective channel to understand and grasp the first-hand data and information of consumers, in the process of brand building, channel design, product design and consumer experience design lack of effective grasp.

6. Not only OEM and ODM manufacturers, in fact, for big brands, the rapid growth of the electronic cigarette industry has not been a good timely data source, second, because some big brands are big tobacco companies, many companies are still in the traditional way of tobacco marketing strategy layout with a variety of legal norms entangled, this is the case. There are plenty of market opportunities for emerging companies that are not big tobacco companies with a technology-centric marketing model adapted to the times.

With the rapid development of China's electronic cigarette industry, we need to consider the following issues further, whether from the perspective of long-term stability or survival first.

1, where will the definition and location of Vaporizer go in the future?

A) quit smoking or replace tobacco products?

As a quit smoking or tobacco substitute products, although there are more than 190 brands on the market, but on the one hand, a considerable part of the brand is water smoke. At present, tobacco market is dominated by tobacco pole cigarettes, while tobacco pole (rechargeable / disposable) e-cigarettes market is still in the early stage of development, brand maturity is not enough, although BLU, AHK and other brands get the first opportunity, but the future market consumer demand for tobacco pole e-cigarettes may be further expanded, but also to new products. Brand brings new plan

B) personal electronic products?

Traditionally, tobacco products are sold through specific channels, both in the United States and Europe, through retail terminals like CVS, and under category restrictions, through specific counter sales. But can personal electronics, as permitted by the relevant national laws, be more effectively accessed through electronic retail channels such as Best Buy? E-commerce channels also have the advantage of electronic products and new brands.

C) personal health terminal?

With the emergence of wearable products, the popularity of mobile Internet, and the deepening of smart phones / terminals, will the new technology be further in-depth suited to e-cigarette products? Electronic cigarette products for consumers are no longer just a quit smoking or tobacco substitute products, more can interact with other smart devices, social circles and share.

2. New technology of electronic cigarette: With the maturity and popularization of Bluetooth technology, mobile Internet, fingerprint, mobile positioning technology, electronic cigarette as a new product in the future will be further integrated with these new technologies, which will undoubtedly bring more new users and give new brands a broad market space.

Authense, a professional consultancy specializing in the e-cigarette industry and big data applications in the United States, argues that China's e-cigarette manufacturing and processing enterprises and the industry as a whole need to look further ahead.

Just like the mobile phone industry.