Company dynamics

Panning for gold water pipes

  

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  When gold was discovered at the Saudi mill in California in 1849, within a year 300,000 people had flocked to the California valley in search of their "American dream" from the American states.

  Like the gold rush in California two hundred years ago, glass pipes are the new craze in 2019.Two years after it was founded, the American e-cigarette company Juul received a huge investment from the tobacco giant Altria Group, worth up to $38 billion.

  There was a time when everyone wanted to be the yul of China."Smartisan designer zhu xiaomu created "fu lu", "uncle CAI yuedong", "grapefruit", and peng jinzhou created "lobules".E-cigarettes have become a new trend of entrepreneurship on the Internet, sparking a "100 cigarettes war" in China.Also affected by the wind are various venture capital institutions, which have poured hundreds of millions of renminbi into the e-cigarette industry.

  Many people who have been e-cigarettes for years have been surprised by everyone's sudden enthusiasm, because e-cigarettes themselves are a very small market.While 90 per cent of the world's e-cigarettes are made in China, most of them are exported to overseas markets and not much stays in China.At the same time, most domestic consumers' understanding of e-cigarettes remains stuck in the "smog" of 20 years ago.

  The tuyere shock and everything in the industry has accelerated.Since shenzhen has a whole factory of cool water pipes, new companies entering the e-cigarettes, registered companies and brands of the bureau directly find an agent factory for label production, after shipment, they start to sell on the Internet.In the second half of 2018, there were rumors that 5 million e-cigarette companies could build a chain of e-cigarette companies from brands to supply chains, with monthly profits of up to 10 million if properly marketed, which seemed like a stable and profitable business.

  Because the supply chain is the same, e-cigarette entrepreneurs, with their "Internet genes", focus first on branding.To get people's attention, e-cigarette companies not only invite celebrity endorsements, but also highlight "harmless" or even "healthy" elements, confusing the concept of "replacing cigarettes."At the same time, color bars and fruity smoke bombs also have a great appeal to minors, which also buried the hidden trouble, to the follow-up high-pressure regulatory countermeasures brought hidden trouble.

  E-cigarette practitioners who have been oil rigs for years often refer to themselves as "dirty money" because, although they basically use tobacco oil, they compete with the tobacco industry because of the nicotine-salt properties they produce.However, thanks to the influx of entrepreneurs and the influx of money, the humble e-cigarette has suddenly become a hot spot, and has inevitably attracted the attention of regulators around the world.Early e-smokers believed that it was the high profile and aggressive nature of the newcomers that eventually led to the arrival of boots.

  At the party on March 15, 2019, e-cigarettes were added to the "list" and criticized.At the end of October, the country issued a blanket ban on the sale of e-cigarettes on the Internet, directly blocking the industry's most lucrative channel.

  Without this wave of e-cigarette start-ups, the industry would have grown very slowly, according to previous practitioners, but would have slowly trained users, followed the rules and become more perfect.

  However, the influx of entrepreneurs in one year will be less than 2 billion e-cigarettes market, up to nearly 10 billion yuan.This uncertainty arises when this seemingly perfect business model is driven by rapid growth.