China is the world's largest maker of e-cigarettes, with a 95 per cent market share, according to the data.However, compared with foreign countries, the penetration rate of e-cigarettes in China is still very low and the market is still in its infancy.Many e-cigarette companies also see a big opportunity.
The controversy over e-cigarettes has grown as the industry has come under fire.For example, can e-cigarettes help you quit smoking?Is it less harmful than traditional cigarettes?If these issues remain controversial, glass pipes are making smoking more common among former nonsmokers, such as women, young people and even teenagers.
For example, many e-cigarette brands have introduced many new tastes and marketing methods, and they also combine with young people's gatherings such as music festivals, thus shaping the brand image of e-cigarette fashion and trend.Some e-cigarette companies are also using celebrities as spokesmen, making promotional films and trying to appeal to young people.
"In China, the number of people aged 15 and over who use e-cigarettes is about 10 million," said xiao Lin, a researcher at the tobacco control office of the Chinese center for disease control and prevention.E-cigarettes are mainly used by young people, with the highest usage rate in the 15-24 age group.Today, the majority of e-cigarette use is via the Internet, accounting for 45.4 percent.
There is no doubt that a large number of minors are also included in the 15-24 age group.That's why the state tobacco monopoly administration and the state administration for market regulation issued a notice on November 1 on further protecting minors from the harm caused by e-cigarettes.
The notice requires e-cigarette companies to close their sales websites and customers, withdraw bio water pipes advertisements posted over the Internet, and require e-commerce platforms to close e-cigarette stores on their shelves.As a result, minors cannot access and purchase e-cigarette products through the Internet.
After the announcement, yuechi, flow, snow a, Yooz and other domestic e-cigarette enterprises have issued a public notice, expressed support for the announcement, minors are prohibited to use e-cigarette products.
A few days later, however, sina technology discovered that the e-cigarette company had only shut down its official website and WeChat applet's cable TV channel, and that some e-commerce platforms could still buy e-cigarette products.
This is also very special in terms of timing. With the launch of singles' day, e-cigarette companies and e-commerce platforms have been preparing promotion campaigns for a long time. Once all the stores and products are removed from the shelves, the loss will be huge.
The head of the state tobacco monopoly administration's monopoly supervision department said that tobacco monopoly authorities in key regions are in joint consultation with law enforcement authorities on major e-commerce platforms, urging them to promptly close oil rigs shops and remove e-cigarette products from the shelves, xinhua reported.The tobacco monopoly supervision department will also establish a dynamic monitoring mechanism for the entire network, strengthen network monitoring and comprehensively retrieve information related to e-cigarette products online.
The cost of small and medium-sized players has risen "in difficult times
The ban has undoubtedly had a bigger impact on the many small and medium-sized brands that are just starting out and rely on online sales.
For small and medium-sized brands, the official website WeChat small program e-commerce platform is relatively easy to layout in the early channels, while network promotion and marketing also faster to increase brand awareness and customers.The online ban by the state tobacco monopoly administration and the state administration for market regulation deprives them of important online marketing channels.
Thanks to its perfect offline layout, some of the larger e-cigarette companies are kept within limits: online channels account for 10-15% of yuechi's sales, according to people involved in yuechi.Jin jia, an a-share listed company, also said its online channel for fuguo e-cigarettes was limited to JD.COM mainly opens flagship stores, adopts different offline cooperation modes such as brand agency and different industry alliances to carry out offline sales, and the main sales channels come from offline channels.
However, with the closure of online channels, the already competitive offline channels will also bring rising costs and other problems.
Generally speaking, offline channels of e-cigarettes include physical stores, convenience stores, KTV, nightclubs and so on.On the one hand, e-cigarette companies to expand the ranks of agents, on the other hand, they have to pay higher entrance fees.Especially with the increase of e-cigarette enterprises, the competition is more fierce and the channel cost is higher and higher.
Leo, a partner at Bobai Capital, also recently pointed out at an e-cigarette forum that e-cigarette dealers have relatively few profitable outlets.Many e-cigarettes are developing agents to handle horses, and some are three-tier or four-tier agents.For the whole industry, three or four layers of agents is a very fatal problem, which will lead to high channel costs.
Add: Guangdong . China