In the past year, with the emergence of policies and problems of enterprises themselves, the glass pipes for smoking cigarette industry has entered a reshuffle period, and some brands have gradually fallen into recession after financing. Among them, the glass pipes for smoking cigarette brands such as "the crisis of financing in Xuejia", "VC also exits" and "Fulu layoffs" should be some of the voices that the industry has often heard recently.
According to reports from the investment community, some FA said that the customers of hand blown glass pipes companies have obviously become much more difficult to raise funds. In particular, the supervision of the ban on Internet sales has made them more cautious. "Now basically there will be no more organizations to throw glass pipes for smoking cigarettes." Some time ago, some domestic mainstream VC expressed similar views to the investment community in a surprisingly consistent way. However, a VC partner who has long been concerned about the glass pipes for smoking cigarette industry told the investment community that the industry reshuffle has already begun and only companies with strong self-generating ability can survive. "As for the companies of Fulu and Shegar, which are not very stable in their own operation, they will not be able to obtain capital to renew their lives in the short term. I am afraid this winter will not be easy."
Time seems to be back to 2018, even a few years ago, according to incomplete statistics, China has gathered 90% of the global glass pipes for smoking cigarette supply chain, Shenzhen has more than 1,000 glass pipes for smoking cigarette processing plants, and only about 5 million is needed to establish a new brand. In addition, China has more than 10 million hand blown glass pipes users. However, according to incomplete statistics in the investment community, since June 2018, the total amount of financing in the glass pipes for smoking cigarette industry has exceeded 1 billion RMB, and most of the start-up enterprises can get 10 million RMB in the first round of financing.
Obviously, this industry seems to have all the potential to "explode." In 2018 alone, not less than 10 hand blown glass pipes brands were established. By the end of 2018, Yueke, Fuluoflow, yooz, Xuejia, Magic Flute and other glass pipes for smoking cigarette brands have obtained financing and quickly launched their products to the market.
In order to grab more markets, hand blown glass pipes companies like Xuejia, VC, Fulu and Xiao Ye have also "dared" to burn money. One of the most famous examples is that Xiao Ye has spent tens of millions of dollars to invite Edison Chen to be its spokesperson, which has attracted a lot of attention. Other brands are also spending a lot of money on promotion in order to make loud noises quickly, but many marketing expenses are rising fast and the effect is not as good as the star's ideal. An hand blown glass pipes practitioner told the investment community that Fulu had sponsored millions of dollars for a music festival before, but in the end even "didn't show much brand".
In addition to brand online advertising, offline resources snatching has become a common phenomenon in the industry. An investor who invested in hand blown glass pipes companies disclosed that some e-cigarettes such as Xuejia Snowplus and Yooz currently hit the "market hardest" with "low price" on the market, offering the lowest price to channel agents, and adopting a strategy of "taking the market first, then gambling and buying again". He analyzed that in order to obtain more channel resources, brands such as XYGA will provide sources of goods with lower prices or even lose money, and promise channels to obtain more profits. On the positive side, the market can expand in a short time. However, in this way, it is equivalent to a price war. If there is not enough cash flow to support the cost of distribution and goods, the profit structure is quite dangerous.
Only non-stop financing can "renew one's life". However, many investors have found that hand blown glass pipes companies have become the hardest hit areas for "fraud" among start-ups this year. In July, Schaegar announced at a press conference that sales had soared by 800,000 units in three months. This figure was subsequently questioned by AI Finance and Economics. In addition, the government announced the amount of financing, and there is no third-party organization to support this data. AI Finance and Economics has asked many people in the industry for confirmation. Some people say that the data are "false". In addition, Hong Kong media Vapeast reported earlier that Shegar was also suspected of exaggerating when packaging. Reverie Lab, an overseas research and development company mentioned many times, actually does not exist. The results of Business Insider's report are even more paradoxical. Shegar, established in 2019, even uses the signature of US Senator McCain, who died of cancer in 2018.
Add: Guangdong . China