Survival consensus of the e-cigarette industry in the post-epidemic period
With the improvement of the China epidemic situation, most e-cigarette companies have resumed production and operations, but compared with 2019, the e-cigarette industry’s popularity can be described as the difference between “heaven” and “hell”. Even for brands that are still operating, there are people who are happy and worried-some are flying against the trend, and some are failing to pay.
The start of 2020 is destined to be memorable. A series of problems caused by the new coronavirus pneumonia epidemic are erupting around the world. It is even more difficult for the e-cigarette industry that is already difficult. Fortunately, China epidemic situation is basically under control, economic development and production are gradually recovering, and it has become a consensus to fully resume production.
On March 5th, the British Ministry of Health published an article on the eight truths about e-cigarettes, which was reprinted on the official website of the British government. This matter was widely spread in the e-cigarette circle in an instant, because in the view of e-cigarette practitioners, the official happened or expressed its attitude. It is a strong rectification to the prejudice suffered by the e-cigarette industry!
The first of the eight truths is that “nicotine electronic cigarettes have nothing to do with the outbreak of lung disease in the United States last year.” A mysterious lung disease broke out across the United States in August 2019, and a total of 68 people died. The culprit was later identified as an illegal additive to the “inferior” cannabis electronic atomization product, vitamin E acetate. The truth is “Nicotine e-cigarettes do not contain this substance.”
However, e-cigarettes are still unjustly blamed. In response to the outbreak of lung disease, regulatory agencies around the world have begun to ban the sale of nicotine e-cigarettes. This ban has also greatly hindered the possibility of cigarette users switching to e-cigarettes.
Fortunately: the truth has surfaced, and the e-cigarette has finally gained its right name! The market is picking up, and the thing everyone expects finally comes.
In the post-epidemic period, are e-cigarette brands okay?
Can e-cigarettes turn against the adversity? Is it still suitable for investing in e-cigarettes? In 2020, there are a lot of questions and confusion in front of e-cigarette entrepreneurs.
In the first quarter of 2020, China GDP dropped by 6.8% year-on-year, and the e-cigarette industry was also sluggish. Before that, Flow vape had a tight capital chain, two months of salary arrears, and 70% of layoffs. The advertisement cited content of data, statistical data, quotations, etc., is untrue, inaccurate, or fails to indicate the source is punished administratively.
Some people say that the e-cigarette industry is now struggling, but when the spotlights shine on head brands such as RELX, ammo, and SNOWPLUS, it turns into a good opportunity to fly against the trend.
According to the relevant data of the e-cigarette supply chain, there have been some new changes in the sales of e-cigarette brands recently. RELX is still the first to be expected. Surprisingly, more than 1 million cigarettes are sold monthly. Jumping up to second, YOOZ ranked third with monthly sales of around 700,000.
Regardless of the industry, there is an unspoken rule that has never changed: the hottest ones are most likely to be targeted and the most likely to be faked. In addition to the fact that the industry RELX is being counterfeited, many fakes of ammo have also flowed out in the market recently.
In response to this matter, RELX issued a consumer warning on its public account platform to remind consumers not to buy general pods, carved devices and Wechat discount products.
The person in charge of the ammo market is more blunt: “There are fakes, and it indicates that our products are popular in the market, but we are not worried about the fakes disrupting the market, because e-cigarette users are very picky. These fakes are just like ammo appearently. The experience of using genuine products varies greatly, and old users will soon find the problem. In order to avoid being deceived, especially new users, we are cracking down on counterfeits and reminding consumers that they must buy in official stores. ”
For several head e-cigarette brands, their way of survival is “striking counterfeiting while innovating”. Anti-counterfeiting relies on policy, and innovation relies on a professional, standard and leading laboratory to complete “innovation”. After work, in turn to help strike counterfeit.
On March 30, 2020, SNOWPLUS CNAS laboratory was officially put into use in the Guangming District of Shenzhen. According to reports, in addition to going to the third-party agency for certification, other tests can be completely completed by its own laboratory- Including all required test items including analysis and testing of R & D projects.
There are only a few CNAS laboratories that can be named in the e-cigarette industry.
As the industry leader, RELX announced in 2019 that it has an exclusive research and development laboratory. In addition to conducting innovative research related to electronic cigarettes, the most important mission is to ensure the safety of RELX e juice. As early as March 2, 2018, ammo relied on the resource advantages of the Boton Group and was the first e-cigarette company to own a CNAS laboratory.
On an empty land in the Xili area of Nanshan District, Shenzhen, the Boton Building stood alone, and RELX and ammo were working in the Boton Science Park. On the 18th floor of the building, there is an exhibition hall with clear windows and a series of ammos. It can be seen that as a partner of China Tobacco, the Boton Group, which started as a fragrance and spice, devoted a lot of effort to ammo.
Next door to the exhibition hall is Boton’s famous CNAS laboratory. Many classic flavors of ammo are developed here.
CNAS is the abbreviation of China National Accreditation Service for Conformity Assessment.
The China National Accreditation Service for Conformity Assessment (CNAS) is a national accreditation body established and authorized by the National Certification and Accreditation Administration Commission in accordance with the provisions of the “Regulations on Certification and Accreditation of the People’s Republic of China” and is responsible for the certification bodies, laboratories and inspection agencies recognition by relevant agencies.
To obtain the CNAS laboratory accreditation certificate, six strict and meticulous procedures including intention application, formal application, review preparation, document review, on-site review and accreditation approval are required. A laboratory that can pass the review and obtain the certificate means that successfully entrance of the ranks of national accredited laboratories, and its overall strength and technical level were also recognized by the China National Committee for Conformity Assessment.
Boton CNAS laboratory is the first first-party testing laboratory approved by CNAS in China’s flavor and fragrance industry.
Supported by such a strong technical background and strong R & D strength, since the launch of ammo in March 2019, ammo have continued to launch nearly 30 flavors of pods, from classic flavors to European tours and American tours. It accurately captured the pulse of the market once and accurately cater to consumers’ taste buds.
According to the seventh edition of the “World Tobacco Populartiy Report” with the theme of strengthening smoking cessation services released by the World Health Organization, global e-cigarette sales continued to rise from 2012 to 2019. By 2019, the global e-cigarette market sales will be approximately US $ 19.5 billion , A year-on-year increase of 13.45%.
Obviously, the demand for e-cigarettes is still increasing at a high speed, which is worth celebrating for e-cigarette entrepreneurs who are still insisting on or preparing to enter the game. However, the rapid development also means that opportunities and challenges coexist!
For the entire e-cigarette industry and market, what is the fate, in this battle.
In the past, e-cigarette brands only wanted to “make quick money.” After experiencing the online ban and the impact of the epidemic, the e-cigarette companies have basically reached a consensus of “survival & live”. In this special period, how to rise against the trend, how to gain a foothold and protect their own market share and industry status, has become the test questions that e-cigarette companies have to pay attention to in 2020.