Friday, October 18, 2019
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Home Brands Chinese Vape Industry Will Shuffle in 2019

Chinese Vape Industry Will Shuffle in 2019

2019 is bound to be an extraordinary year for Chinese domestic electronic cigarettes. From manufacturers to distributors and stores, there will be a big shuffle.

On the one hand, the National Standard of Electronic Cigarette has entered the stage of “being approved”, and the policy of electronic cigarette management norms; the Electronic Commerce Law will be formally implemented on January 1, 2019, which stipulates that all those engaged in electronic commerce industry need to obtain relevant licenses and qualifications. On the other hand, market trends and e-cigarette models have been quietly changing.

 Just like the day Nokia was acquired by Microsoft, CEO Yoma Olila finally said, “We didn’t do anything wrong, but somehow, we lost.” After that, dozens of Nokia executives couldn’t help crying!

Nokia CEO: Yoma Olila

From 2010 to 2018, sales of e-cigarettes increased nearly 20 times. E-cigarettes users estimated more than 35 million. China produced more than 90% of e-cigarettes, but domestic market consumption only reached 6%, far less than the U.S. and European Union markets. Even so, domestic e-cigarettes still have more than 50 billion markets!

From the perspective of consumer groups, e-cigarette consumer groups have gradually transformed from player groups to smoker groups. The change of market is closely related to the development of iqos and the rise of banned and nicotine salt technology. From the search index, the search for e-cigarettes and the search for users who quit smoking have been highly overlapped, so the main market in the future has basically locked in the replacement market, and small cigarettes have become the trend of the times.

The male-female ratio and age group of the two groups are highly coincident.

There are three main types of cigarettes: disposable cigarettes, bomb-type cigarettes and e -liquid-filled cigarettes. Qualitatively speaking, it is designed for the largest group of novices.

Secondly, from the current mainstream of small tobacco products in the market, whether domestic or foreign, through market practice has proved that smoke bomb type of small tobacco occupies the mainstream. For example, the annual sales of Juul’s small cigarettes reach tens of millions of grades. Although domestic cigarettes are not as fast as foreign cigarettes, they also reach millions of grades.

vape industry shuffle
Ankai, an artist who uses electronic cigarettes

 Because of the particularity and superior experience of the cigarette bomb, a strong closed-loop re-purchase consumption has been formed, which urges consumers to continue to buy cigarette bombs, thus improving customer stickiness and directly improving the turnover and profit of the store. Businessmen are also more willing to recommend this simple and practical tobacco replacement package from the marketing strategy, which will promote the prosperity of the tobacco bomb-type cigarette market.

Because of the particularity and superior experience of the cigarette bomb, a strong closed-loop re-purchase consumption has been formed, which urges consumers to continue to buy cigarette bombs, thus improving customer stickiness and directly improving the turnover and profit of the store. Businessmen are also more willing to recommend this simple and practical tobacco replacement package from the marketing strategy, which will promote the prosperity of the tobacco bomb-type cigarette market.

Using electronic cigarettes

As far as market development is concerned, the domestic small tobacco market will return to the traditional channels. At present, major brands have been vigorously exploring. The reason why the traditional industry can last forever lies in striking the market order, strictly controlling the price, preventing the collusion of goods and ensuring the interests of operators at all levels. Without the support of profits, stores will not have good service and after-sales, and the ultimate consequences will also be passed on to consumers.

Without profit, there will be no promotion and operation costs. If the brand is difficult to grow and grow, it will be transferred to stores. If there is no brand awareness, there will be a backlog of products that are difficult to sell. The essence of business is profit, not emotion. But profit margin is very large and profit margin is very small, which is not conducive to brand and market development; huge profit margin will make consumers unbearable, but also doomed to go a short way.

Using electronic cigarettes

 Smoke new products continue to push out new speed, it seems to be back to last year’s era of heavy smoke, every few days there will be new boxes and new atomizers out. Some of these products have no long-term plan, and can make waves while the market is hot; it is not difficult to build short-term explosive products, but difficult to make long-term explosive products.

Short-term hot products are bound to have problems in supply control, product quality and price system control. Therefore, in order to maintain the long-term development of the brand, we must abandon the idea of short-term speculation. Now electronic cigarettes are on the right track, the national standard of electronic cigarettes has been approved, and the Electronic Commerce Law will soon be implemented. A small cigarette needs good brand, good quality, good price control, and capital products to survive and grow.

Product positioning is wrong, quality is not good, price control is not good, there is no brand products will inevitably be unable to survive. The product itself decides whether it can go, the mode decides how far a product can go, and the capital decides how wide a product can go.

At present, the brand awareness of electronic cigarette market is not high, but with the development of time, novice brand awareness will gradually improve, consumer choice will bring traditional online and offline shop shuffling. The combination of online and offline mode will be the trend, online diversion for offline, online promotion for offline.

electronic cigarette market  user

If the brand wants the product to go well, it should not focus on how to make the product sell well, but on how to make the distribution stores sell well, and spend a lot of financial energy on promoting the product. Drainage to official retail stores and distribution stores is tantamount to killing chickens and fetching eggs. On the contrary, the best way is to find ways to divert off-line stores and on-line stores so that they can sell well.

 In a word, the development mode of domestic electronic cigarette market will change completely in the future. It is very important to grasp the market trend accurately and choose the right mode and good method.

China E-Cigarette Report 2018 – ResearchAndMarkets.com

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Shenzhen produces 90% of total vapes in the world and Hong Kong, the transition place of vapes, is beside Shenzhen. The author who lives in Shenzhen follows the origin of vapes closely and distribute the earliest vape news & reviews from Shenzhen, Hong Kong and other places in the world from most authoritative vape insiders.

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