In 2018, the global vape market grew to US $14.52 billion, and CAGR reached 19% from 2014 to 2018. More than 90% of the $10 billion global e-cigarette market is concentrated in Europe and the United States. Although emerging markets such as China have begun to make efforts, their scale is still small. In 2018, the sales volume of e-cigarettes in the United States reached 8.5 billion US dollars, while that in China was only 560 million US dollars. The huge market gap has given birth to the opportunity for Chinese e-cigarette enterprises to go to sea.
Pavino is an e-cigarette company that focuses on overseas markets. Its refillable electronic cigarette is mainly sold in Europe, America and Southeast Asia. Refillable vape is to provide users with an oil filling inlet, and users can directly purchase oil rather than carts or pods to use it. Compared with the domestic mainstream prefilled vape, refillable one provides more independent choice of flavor and taste, and also reduces the cost through the reuse of carts. The foreign market is more interested in the electronic cigarettes that can be filled with vape juice.
Pavino was founded in 2017. At the beginning of its establishment, it developed box mod products, and then chose pod field according to market changes. In April this year, its pod product, Wing pod, began to be launched into the market. In September, it realized the sales of 10000 devices and 30000-40000 carts. At present, the sales revenue of overseas market accounts for 60%, and the business covers the United States, France, Indonesia, Malaysia, Dubai and other countries. With the continuous development of overseas market, it is expected that the proportion of overseas market will expand to 70-80% next.
Pavino sells devices and carts. Its product package includes one device and one pod, and the current overseas price is US $49 (domestic price is 328rmb). Its e-liquid mainly comes from the first-line e-liquid factories at home and abroad, which can be purchased by users themselves.
The refillable way expands the user’s choice of electronic cigarette taste. However, the same kind of e-liquid in use, because of the change of electric quantity, there is the phenomenon of unstable output power. This will also affect the taste experience of e-cigarettes. For pod vape, when the power difference is 1-2W, the reduction degree and throat striking sense of e-liquid will be significantly different. Pavino has set the pressure regulating function in the electronic cigarette, and the user can set the constant output power according to the taste preference, so as to realize the stable use experience. Luo Haichao, founder of Pavino, said that precise voltage regulation and stable power output are the source of user stickiness.
Its adjustable power function is realized through the app independently developed by Pavino, which also stores the taste curve of various mainstream vape juice in the cloud for users to download directly.
Pavino app interface
There are more than 100 electronic components installed in pavino’s device. In addition to the adjustable power, Pavino also implements 1) statistics of suction port number and can set the anti indulgeing mode. For example, set the number of times to use in 10 minutes, and the e-cigarette will automatically stop working after reaching the standard. 2) store the user’s use data within 50 days and export it in the cloud. 3) build the app user community. Users can share their experience through text, pictures and videos.
Pavino electronic cigarette can realize functions
The data generated based on the app can also analyze the user’s behavior, help users understand their own e-cigarette use habits, and achieve accurate calculation of nicotine intake. In the process, Pavino can collect users’ preferences for the use of e-liquid and provide accurate market demand information for the e-liquid plant. The big data generated by Pavino can also help the application of e-cigarettes in the medical field. The UK and other countries have incorporated e-cigarettes into the medical system as a substitute for traditional tobacco. Intelligent platform can achieve more efficient and in-depth medical research.
In October this year, Pavino electronic cigarette won the “best pod in 2019”, i.e. “best pod vape in 2019” at vapexpo innovation electronic cigarette exhibition in Lille, France. The exhibition is an important platform for e-cigarette enterprises to open up the French market.
Pavino won the “best pod award in France 2019”
In terms of the safety of the open electronic cigarette, the founder of Pavino said that at present, there is no control over the user’s used e-liquid. In the future, we will consider installing sensors that can identify the e-liquid to enhance the control over the quality of the e-juice.
In terms of sales channels, Pavino currently mainly cooperates with vape juice factories and agents. In the global e-cigarette market, the device is mainly produced in China, and the e-liquid is produced by local manufacturers according to the taste preference of users everywhere. In the overseas market, Pavino has established in-depth cooperation with the local vape juice plants to realize the bundling of products.
When talking about the development of the domestic market, the founder said that although he did not focus on the domestic market at present, he has successively established agent channels and opened Tmall stores. At the beginning of 2019, Pavino won 2621 supporters within 40 days after the launch of JD crowdfunding, with a sales volume of 171058 yuan. The domestic market is gradually accepting refillable electronic cigarettes.
Pavino’s founding team is mainly from the mobile communication and Internet of things industries. Luo Haichao, the founder, once served as the general manager of Chenxun technology’s Eurasian Sales Department, and has carried out business in more than 30 countries. Ye Yong, the co-founder, has more than 10 years of experience in technology, production management and supply chain management in the electronic communication industry, mastering the resources of electronics, structure, mold and processing plant. The supply chain of Pavino e-cigarettes is mainly from the mobile communication industry. Another co-founder, Zhang Yanwu, has 9 years of embedded development experience and is familiar with the architecture of various chips. Li Chao, technical director, served well-known mobile phone communication companies in his early years, with ten years of software development experience and six years of experience in mobile Internet app and cloud architecture design.
Pavino currently has a team in Shanghai and a team in Shenzhen. The Shanghai team is mainly responsible for the R & D of core software and hardware and app, while the Shenzhen team is mainly responsible for the supply chain and brand promotion.
In the future, Pavino will continue to use intelligent hardware technology to create electronic cigarette products and realize AI enabled electronic cigarette. The company has now opened up financing, and the team is actively contacting investment institutions.
Where to buy Pavino