Finance minister Nilmara Sita Raman said in new Delhi a few days ago that the federal cabinet had approved a ban on the production, sale, export and import of e-cigarettes.Also in September, New York state announced a ban on the sale of seasoned banging pipes when water is turned off, becoming the first U.S. state to ban the sale of flavored e-cigarettes.
At the same time, China is speeding up the construction of a regulatory system for e-cigarettes.The national health and hygiene commission plans to regulate legislation in the e-cigarette industry, while a national standard-setting plan issued by the standardization administration is scheduled to take effect in October.Cities such as hangzhou and shenzhen have explicitly included e-cigarettes in their "smoking control orders", and cities such as Beijing and chengdu plan to include them in their regulations.
But in stark contrast, the e-cigarette industry is still booming.At least three new products have been launched in the past half month.In addition, the glass pipes industry has raised more than 1 billion yuan this year, which may reflect a trend: when the government regulates the wind and rain, the industry needs to accelerate capacity expansion, seize the market, stock up on "winter grain" and seek more chances of survival in the face of possible market and policy risks.
Why have e-cigarettes grown so rapidly in recent years?This is because e-cigarette companies have come up with the concept of "replacing traditional tobacco with a safer, less harmful product for the human body".For example, the number of smokers in China has exceeded 300 million, which means that if the concept is established, more smokers will switch from traditional tobacco to electronic cigarettes based on health concerns, which will lead to a huge blue ocean market.
Currently, China produces more than 90 percent of the world's e-cigarettes, which means that Chinese e-cigarette companies can not only reach China, but also export abroad on a large scale."It is to see the imagination of the space, e-cigarette is called the next trillion tuyere industry, more and more entrepreneurs, capital inflows accelerated.Mr Lo, who failed to make a hammer phone, announced that he would enter the e-cigarette industry;Wearing the halo of "Uber young female executive entrepreneurship", yue chi claims to have become the country's largest e-cigarette company;The company, which just received $40 million in financing, announced it would work with hotel chains to promote its e-cigarettes in more than 1,000 hotels in more than 110 cities across the country.For a while, water jet pipe cleaning seemed "fire everywhere, smoke everywhere."
However, whether e-cigarettes can actually reduce the harm to the human body has been controversial.Research at home and abroad shows that e-cigarettes also have the harm of second-hand smoke, containing nicotine, aromatics and other chemical additives harmful to health, the world health organization (WHO) has long identified e-cigarettes harmful to health.The continuous emergence of negative information has shaken the market foundation of the development of e-cigarettes, bringing two major consequences: more and more countries and regions to implement strict regulation of e-cigarettes, e-cigarette policy risks suddenly increased.
If the effects of e-cigarettes on the human body are similar to those of traditional tobacco, there will be no need for smokers to switch from traditional tobacco to e-cigarettes, which will lead to the overall contraction of the e-cigarette market target customers.This is the most important factor in capital as a measure of future growth and income.
At present, some e-cigarette companies frequently raise funds and launch new products, so it is obvious that the companies hope to seize the "national standard" and the market window before local regulation, and seize market share as much as possible.Still others remain optimistic about the future of e-cigarettes, or are willing to continue betting that future policies won't be too restrictive.
"How long the e-cigarette market will last depends on three factors," he said.First, can wildly funded e-cigarette companies get more smokers to use their products faithfully before the regulatory sledgehammer lands?Second, whether "national standards" and planned legislation are as strict as in foreign countries will determine whether the next market channel can accommodate so many firms.Finally, the money is not lei feng, investment must have a return, the future of the e-cigarette industry is more than 50% of the current profit margin, as a result of the above factors lead to sales decline or even loss, capital can give how much patience?
How long can e-cigarettes catch fire under tighter regulation?This does not seem optimistic to me.Unless the e-cigarette industry can develop products that eliminate existing problems, actually allow smokers to reduce their physical damage, and accept long-term testing by the authorities, e-cigarettes will take a long time.Otherwise, the e-cigarette industry faces a cold winter as organizations and users develop unhealthy perceptions of e-cigarettes and reject them in various ways.
Add: Guangdong . China