On November 1, shenzhen's bolton science park changed its usual heat, and the atmosphere was somber and depressing.
The founders sighed in the industry, recalls liu gang, a co-founder.The water pipe heater industry building, called huaqiangbei, suddenly stopped. "everyone felt very busy," it said.Layoffs, transfers and even relocation to factories have reduced the number of people in the building from more than 1,000 at a time to 1,000 today.
Bolton science park, shenzhen
Initially, the company intended to expand its staff, which was very welcome.After the policy came out, the entire e-commerce sector was cut off.The company lost thirty or fifty men at once. It will be clear in a minute."Zhu Ming, human resources at an e-cigarette company that also works at the bolton science park, said.
The change in the science park is related to an announcement.
On October 30, 2019, a notice on further protecting minors from e-cigarettes was officially released, banning the sale of e-cigarettes online.The state tobacco monopoly administration and the state administration for market regulation issued a joint letter on Nov. 1, urging e-cigarette companies to stop selling e-cigarettes online, and urging e-commerce platforms to shut down e-cigarette stores and remove e-cigarette products from their shelves in a timely manner.Many e-cigarette brands, so the vitality of a lot of damage.
Over the past year, the rapid rise and fall of the jet water pipes industry has been welcomed by various institutions in the first half of 2019 with physical gold and silver. In the first half of 2019, there were more than 35 industrial investment cases with a total investment of at least 1 billion yuan. Now it has almost completely disappeared from the mainstream venture capital topic for only a few quarters.
At the end of this year, tech refocused on the Internet delivery industry, visiting e-cigarette companies and supply chain factories that are still struggling on the road to business, and conducting in-depth field research on their business expansion.
Many wind - blown, mud - and sand-covered projects have ended.Beyond the embarrassment of survival, a few industry survivors remain hopeful about the future.
It's all sad, the road ahead is pretty steep, what's the current situation for e-cigarette users?
Below the turn
It is obvious that the confidence of sellers has been greatly affected after the introduction of the policy.Many orders have been delayed and two companies have even cancelled them.Heyuan group domestic ODM department head liu lihui said.
Shipments of one major brand fell by 70%.At present, the heyuan factory also stores a large backlog of brand materials, which will be digested within 45 days according to the production schedule budget.
In addition to stagnant goods, factories have had to lay off workers to tide them over.At the busiest time of the year, the heyuan production line employed 5, 000 workers, but now only 3, 000 are left.There are no longer three shifts.
Huang ping, a publicist for an e-cigarette brand, recalled that when she showed reporters around an offline factory in May, she was shocked by the thousands of people assembling the column.Now, when she goes to the factory again to coordinate the goods, she is closed several times and the workers are sporadic.
The sharp decline in the number of workers reflects the decline in shipments from electronic cigarette factories."Huayuan's total monthly shipments fell 40 percent in November and 30 percent in December," liu said.Before that, their factories were making more than $20 million a month.
Life is not easy in the factory, and small orders that once were not considered have become "easy to discuss"."If you don't have to redesign the model, a big factory like heyuan might consider a thousand lists," dab rigs amazon entrepreneur lee meng told Tech planet.In the boom years of the industry, this would have been unthinkable.
Life in the factory was hard, and the company's front end products could not be sold separately.
After shutting down online channels, many of the brands that stocked up on singles' day goods are still sitting in factories.Liu and his colleagues can only hope that each company's offline channels will quickly start to drive turnover.
After nine e-commerce platforms, including JD.com and Tmall, were removed from the shelves of e-cigarette products on November 8, 2019, the importance of offline channels to major brands has become prominent.At present, the biggest challenge for e-cigarette enterprises is the shortage of offline channels.
More competition has shifted offline.