Entrepreneurs in other industries have sniffed at the explosion of "little cigarettes", and manufacturers and traders who used to trade in e-cigarettes have changed the domestic market and launched their own jet water pipes brands.There was a rumor that "5 million yuan could be used to build an e-cigarette brand."If you use the gift market or direct sales agency channel, if the annual sales reach 10,000 to 20,000 pieces, you can make a profit of about 2 million yuan and a profit margin of up to 60%.Industry insider analysis.
The rapid entry of corporate brands depends on the mature supply chain system of the tobacco industry.Shenzhen is the world's largest e-cigarette production base, accounting for 90 percent of the global market.In less than half of Beijing's chaoyang district there are hundreds of electronic cigarette factories.Many enterprise brands rely heavily on oems (original equipment manufacturers, contract production in the supply chain), such as supply chain enterprises, ODM management, and Macwell, which specializes in sprayer technology, for a profit of 1.2 billion yuan a year and have a say in the industry.
A person in charge of the e-cigarette initiation brand told China newsweek that McWeill belongs to a design manufacturer. For example, the first product from the Yueke is a McWeill solution, and the patent is in McWeill's hands, so it has the right to set the price.During this period, when some new brands talk about cooperation, the price increase will be very high, which is a kind of short-term profit harvesting behavior.
The high dependence on the supply chain is the main reason for the lack of core technology and product homogeneity.On the one hand, from the perspective of shape, from the perspective of market, the process of each product is not very different;On the other hand, some of the differences between ordinary consumers are either not experienced or do not constitute brand loyalty.
In the interview, each lookah seahorse coil brand told China newsweek that while channel competition is the key now, in the long run it is the product, technology and supply chain that will win or lose.
"Marketing can bring obvious benefits in the short term, but in the medium to long term, brands, products and supply chain capabilities are the core competitive advantages of e-cigarette brands.""Said qiu.
Is the e-cigarette industry a marathon or a 100-meter dash?Chen min, xi's chief executive, prefers to compare the situation with the development of shanzhai devices.MTK (joint development branch) cell phone solution is very simple, industry low barriers to entry, many fake machine appeared on the market, a group of people made a quick buck, but today's real existence is huawei, the wave, millet and other brands, the electronic cigarette industry is a marathon industries, products, technology, research and development will be the core competitiveness of the enterprise.".
For e-cigarette entrepreneurs and investors, the industry's primary concern is not the fierce competition in the market, but the new national standard, which will be launched this year.Speculation in the industry was officially announced in October.
MAO qunnan, director of the planning department of the national health commission, said on July 22 that the commission is working with relevant departments to study the regulation of e-cigarettes and plans to regulate them through legislation.
He added that the dangers of lookah glass dab rig should be taken seriously.At present, domestic and foreign studies have found that the aerosol produced by e-cigarette contains a variety of toxic and harmful substances, and various additives in e-cigarette also have health risks.In addition, many e-cigarette products contain ambiguous nicotine concentration markers, which can easily lead to overconsumption.At the same time, there are also potential safety hazards such as battery explosion, smoke penetration, high temperature and scald.
"There are three possibilities for the e-cigarette industry to speculate about the future of e-cigarettes," he said. "first, e-cigarettes will be introduced into the tobacco monopoly system and banned completely from the policy.Second, controlling the e-cigarette industry through licensing or taxes will reduce e-cigarette profits by 50%, lower than 70% of the high gross margin, but there is still room for more stable development;Third, the policy limits the nicotine content of e-cigarettes, so as to ensure that e-cigarettes do not replace traditional tobacco, that is, to a certain extent, the market space for e-cigarettes and traditional tobacco can be distinguished.
Add: Guangdong . China