The vaping industry often finds itself at the center of discussions about profitability. But what’s the real story behind the numbers? We’ve gathered insights from 20 leaders across various sectors of the vape industry—manufacturers, e-liquid producers, brand representatives, and retailers—to shed light on this topic.
Perspectives from Manufacturers
Ou Junbiao, CEO of Sigelei:
“E-cigarettes are in their growth phase. High profits now are not excessive but rather a reward for innovation and R&D investment. It’s crucial for sustainability in any industry.”
Li Jianwei, CEO of Innokin:
“Compared to the broader electronics industry, e-cigarettes offer good profits, provided that product supply meets demand.”
Wang Huiyang, Marketing Manager at ALD:
“E-cigarettes don’t fall into categories traditionally associated with high profits like luxury goods. Profits depend on brand value rather than market monopoly.”
Zhang Shuo, Chief Strategy Officer at Youme Group:
“The e-cigarette industry is misunderstood by many. Our focus is on creating a healthier alternative for smokers, not on maximizing short-term profits.”
Insights from E-liquid Manufacturers
Yao Jide, Chairman of Hangsen:
“True profitability in e-liquids comes from quality production, not from cutting corners or producing inferior products.”
Yang Peng, CEO of iPure Juice Biology:
“The cost-to-price ratio in e-liquids shows a significant markup, but it’s part of a cycle that will eventually stabilize to reasonable levels.”
Views from Brand Leaders
Zhao Helen, Director of Ammo:
“Profit margins in vaping seem high, but the costs related to expanding sales channels absorb a significant portion of potential profits.”
Liu Nan, General Manager at NOS:
“True profits in vaping come from product loyalty and repeat customers, not from high initial markups.”
Cheng Dayu, CEO of AN:
“Outsiders may see only the retail markup, but they miss the substantial investments in marketing and the high costs of acquiring customers.”
Zhu Xiaomu, Founder of FLOW:
“Vaping requires significant market education and offline channel development, which eats into the perceived high profit margins.”
Zhang Deguo, Founder of VEIIK:
“While retail prices are high, the real profits for brands are much lower due to the extensive distribution chain.”
Liu Haonan, CEO of KMOSE:
“Building a quality e-cigarette product is costly and requires comprehensive R&D and marketing strategies.”
Retail and Market Insights
Big J, Owner of Baode Electronic Cigarette Chain Store:
“Retail profits might seem large at 50%, but after overhead costs, the margins are much thinner.”
Mr. Lu, Shaanxi Supermarket Convenience Store Sales Channel:
“The market is becoming more transparent, reducing the once-high margins as competition increases and prices standardize.”
Manager Dai, E-Cigarette Entity Store Owner:
“Profits are acceptable, but they’re contingent on customer loyalty and a strong business model.”
Manager Xu, Vape Life Company:
“Every industry experiences a phase of high profitability, but as vaping becomes more mainstream, profit margins are likely to normalize.”
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