China vape industry major events in the first half of 2020
After the cold winter may the warm spring come
2020 is an unusual year. From the new coronavirus epidemic at the beginning of the year to the current global turbulence, each of us ordinary people is constantly “witnessing history.” For the e-cigarette industry, the first half of 2020 just ended is unforgettable for every practitioner. And now the author lists the major news that occurred in the e-cigarette industry in the first half of 2020.
On January 3, the US FDA officially released the new US e-cigarette new policy. The Trump administration will ban most flavored cartridges except for tobacco and menthol flavors in closed e-cigarettes, while no refillable mod vape stores had been influenced. As soon as this policy came out, the China vape brands met some trouble when marketing in United States.
On January 19, the US Centers for Disease Control and Prevention (CDC) withdrew its extensive recommendation to advise the public not to use e-cigarettes when the cause of lung injuries in the United States is undetermined. It is gradually confirmed that it is the electronic cigarette or electronic atomized product containing THC that causes lung disease, and the products of regular vape manufacturers have no safety risks.
Since January 25, many well-known domestic e-cigarette companies have donated medical supplies to the Wuhan area to support the fight against pneumonia in the disaster areas. As of February 4, 2020, at least 22 companies including First Union Group, Smok, MOTI, and KMOSE have contributed donations to overcome the new type of coronary pneumonia, demonstrating the role of Chinese e-cigarette enterprise social responsibility.
Events in February
On February 20, the official Wechat account of the IECIE vape show announced that, according to the development of the global new coronavirus epidemic and after coordination by many parties, the original plan was scheduled to be extended from April 24 to 26 at the 2020 Shenzhen International Electronic Cigarette Industry Expo. August 20-August 22.
On February 25th, the net celebrity e-cigarette brand FLOW has been exposed that it has owed its staff two months of salary. A large number of 6 yuan per unit of FLOW disposable e-cigarette sales price has appeared on the market, becoming one of the epitomes of the e-cigarette cold wind in 2020.
Events in March
On March 3rd, according to a notice circulated by RELX’s agent group, RELX warned that there are criminals selling RELX cartridges from unknown sources, reminding consumers not to buy electronic cigarette cartridges from unofficial channels, so as not to buy counterfeit goods. The notice stated that RELX’s inspection was unclear and a test purchase has been arranged to determine the source of the goods and it has reported it to police.
On March 5, the British Ministry of Health published an article on e-cigarettes, and it was reprinted on the official website of the British government. It can be regarded as a powerful refutation of the most widely spread rumors and prejudices in the e-cigarette industry by government agencies. This article comprehensively analyzes the most common prejudices against e-cigarettes, lists basic facts, advocates scientific cognition, and the article is published on the British government website (GOV.UK).
On March 24, the official website of the US Centers for Disease Control and Prevention (CDC) has removed the topic of lung injury from the home page of the official website. Previously, every Thursday (later changed to every two weeks), the routine cases of lung injury also stayed in February On the 25th, it has not been updated since. The final CDC investigation in the United States believes that lung disease is closely related to certain black market THC e-cigarettes supplemented with vitamin E acetate, which is not related to nicotine e-cigarettes.
Events in April
On the 13th, RELX e-cigarettes issued a consumption warning to the public. General cartridges, carved device and Wechat business discount products were all warned not to buy. Some Wechat-commerce channels and some offline channels often have merchants selling various general-purpose cartridges. Not only is the price much cheaper than the original cartridges of the e-cigarette brand, but it can also be combined with genuine device. In these general-purpose cartridges, inferior e-liquid is commonly used, harmful substances, especially benzene series, are seriously exceeded, and the actual nicotine content does not match the packaging.
On April 15, American e-cigarette brand Juul won a decree from the United States International Trade Commission (ITC), which will prevent products from four competitors suspected of imitating Juul e-cigarettes from entering the United States for sale. The end is coming.
On April 23, the Guangdong Provincial Tobacco Monopoly Bureau (Company) Monopoly Division responded to the user’s question about whether e-cigarettes need to be licensed and whether the local front-line management staff required the removal to be legal. The e-cigarette is not a tobacco monopoly product and is not applicable to Adjustment of the Implementation Regulations of the Tobacco Monopoly Law. This news made it clear that the sale of vapes does not need a tobacco monopoly license, soothing the nervousness of many offline dealers.
On April 24th, YOOZ officially launched the latest YOOZ Mini, a new e-cigarette-changing pod system. The retail price is 9.9 yuan, which opened the door to low-cost strategy for e-cigarette changing. The competition in the Chinese e-cigarette market began to enter the era of price wars.
Events in May
On May 22, Ding Lieming, a representative of the National People’s Congress and chairman of Beida Pharmaceutical, said in an interview with China News that China should gradually ban the production and sale of electronic cigarettes. For a time, the industry was full of indignation, and various condemnations appeared one after another.
On May 30th, the Shenzhen Tobacco Control Office and the Shenzhen Municipal Market Regulation Administration carried out a special inspection action on “e-cigarette sales”. An electronic cigarette physical store in Tianli Mingcheng, Nanshan District, Shenzhen was filed on the scene because it did not post the relevant tobacco control signs according to law. And later will be fined 2,000 yuan, it’s the first case in the country.
On May 31st, the theme of World No Tobacco Day 2020 was announced-“protecting youth from industry manipulation and preventing them from nicotine and tobacco use”. The World Health Organization (WHO) e-cigarette theme report shows that for adult smokers, switching to e-cigarettes can effectively reduce health risks. At the same time, national regulatory authorities should focus on preventing the use of e-cigarettes by young people. It is recommended that the regulatory layer should fully consider the interests of all parties and find a balance of regulation.
Events in June
On June 1, the first “Shenzhen Youth Tobacco Epidemic Survey Report” jointly released by the Shenzhen Tobacco Control Office and the Shenzhen Chronic Disease Control Center showed that the situation of protecting young people from tobacco is still very serious, and the temptation of tobacco to young people is getting younger and younger. The use rate of e-cigarettes among young people has reached 2.5%, which is higher than the 2.3% of cigarettes.
On June 15th, RELX and Shenzhen Police have cracked a case of selling counterfeit registered trademarks, and destroyed their counterfeit dens, and seized a large number of counterfeit products. The amount involved is still under further investigation and verification, with an estimated shipment value of nearly 10 million. At present, the suspect in this case has been detained under criminal detention, and the case is still under investigation.
On June 17, the Shandong Provincial Market Regulation Bureau stated that in order to further strengthen the e-cigarette market regulation and effectively protect minors from e-cigarettes, according to the relevant deployment requirements of the State Administration of Market Supervision and Administration and the State Tobacco Monopoly Administration, the Provincial Market Regulation Bureau and The Provincial Tobacco Monopoly Bureau will deploy a three-month “Guard Growth” special rectification action for the electronic cigarette market across the province from now until September 15.
On June 27, Australia withdrew the ban on the import of electronic cigarettes. The ban was announced on June 20, showing that from July 1 onwards, the import of e-liquids containing nicotine will be banned, and anyone who violates the regulations will be fined $220,000.
Looking back at the first half of 2020, it is not difficult to find that the cloud caused by the new coronavirus has not completely gone, the regulatory requirements for minors are also constantly mentioned, and there are still many public opinion and regulation aspects in the electronic cigarette industry of uncertainty. Fortunately, as if the coldest winter had passed, more and more e-cigarette companies began to expand their markets and develop new products in the second half of the year, and all the good news was gradually coming.
Perhaps, after the cold winter is the warm spring, let us look forward to the development of electronic cigarettes in the second half of 2020.