In an office in Beijing's chaoyang district, wei lu, vice President of jianma biotechnology (hainan) co., showed reporters his "collection" of no fewer than 50 e-cigarettes from various brands.
Some lookah seahorse coil look like regular tobacco products, while others look like everyday necessities such as pens and usb memory sticks.The terminal price is usually rmb100, while the factory price is usually around rmb50.
How much money does the company make?'most companies are not making money now,' Mr. Wei said.'most companies spend money on channels,' and if you don't spend money in the first place, the channel won't let you do that unless you make a bigger profit.So most of the profits have to go to the channel, but once you have a strong brand, the channel will come to you to pick up the goods, and the process is bound to go through.
According to incomplete statistics from the media, since June 2018, there have been nearly 30 investments in the field of e-cigarette, including RELX, IJOY, ebo electronics, Gippro dragon dance, FLOW fortune, refined salt technology, ono e-cigarette, etc., backed by real fund, sunac capital, infino fund, source capital, etc.Among them, ejoy even obtained A series A financing of 300 million yuan, and magic flute MOTI obtained A series A financing of 31 million dollars from heyu capital.
At the policy level, also focus on this aspect: on July 22, the state health department of health committee, director of hair group south of electronic cigarette industry regulatory stance, he said, at present, the national health and health committee is working with relevant departments to carry out the special electronic cigarettes research, and plan for the electronic cigarette industry legislation supervision.
On July 26th the world health organisation released a report calling on governments and consumers not to trust tobacco companies to promote products such as e-cigarettes.The report said the "small harm to e-cigarettes" was a publicity ploy by tobacco companies and the lookah glass bong review market should be better regulated.
E-cigarettes, the most common type of electronic nicotine delivery system, deliver smoke to users through a heated solution.E-cigarettes can be roughly divided into two categories, one is Juul represented by the United States, and the other is non-burning e-cigarettes represented by iQOS.Because of China's current heating controls on non-burning e-cigarettes, start-ups are focusing on smoke-type e-cigarettes.
E-cigarettes are made up of a column of smoke, a sprayer and a smoke bomb. The sticks can be recycled.The number of cigarette bombs is about two packs of cigarettes, and the price is usually about 30 yuan.Buying back cigarette bombs is obviously a must - all players have their own space.
In February this year, meihua venture capital and juwei group jointly invested 10 million yuan in the e-cigarette company Yistar.Plum blossom venture capital founding partner wu shichun told reporters, the profit of cigarette stick is not high, the profit of cigarette bomb is very high, can be consumed.At the moment, we are all attracting channels, so we will fund and attract those channels.Investors will focus on the team's marketing capabilities, supply chain management capabilities and product development capabilities."But right now, marketing is more important. It's whether we can get off to a fast start.".
From the current perspective, the local e-cigarette market has a lot of room to grow.The penetration rate of the e-cigarette industry in the United States is about 13 percent. Currently, there are about 350 million smokers in China, but the penetration rate of e-cigarettes is just over 1 percent.Many companies and investors are eyeing the track, and celebrities from technology and other fields, such as luo yonghao, tong shu founder CAI yuedong and xiaomi's top 21 employees, have jumped into the field.
According to a study by guosheng securities, the global tobacco market is $770 billion. When the penetration rate of e-cigarette market is 1.56%, the market size is $12 billion.If the penetration rate reaches 3%, the market size is $23.1 billion.
In 2018, the total industrial and commercial tax revenue and profits of China's tobacco industry reached 115.56 trillion yuan.Calculated by 1% permeability, the domestic e-cigarette market size exceeds 10 billion yuan.From 1% to 13%, the increment space of domestic lookah dab rig market is at least 100 billion yuan.
Attracted by the potential profits, all kinds of money poured in.Over the past five years, thousands of e-cigarette companies have registered each year, peaking in 2017 with 1,834 new e-cigarettes, according to qixin daily.
Compared with the rapid growth of the huge market, the national standards related to e-cigarettes have not been issued, and the regulation of e-cigarette products is in a blank state.Wu shichun believes that this policy will greatly affect the future development of the e-cigarette industry.