Company dynamics

Glass pipes in windfall

  

  Glass pipes, an upstream enterprise in the industrial chain, produces battery, oil rigs, chip, cotton, cigarette holder and other accessories, among which Bolton, Hengxin, Wanrui, Dekang and other enterprises were born. Middle reaches glass pipes enterprise is a design manufacturer, mainly engaged in glass pipes production and assembly, representing McVille, jolin energy, evercorp, five-wheel electronics, gerry technology and other enterprises. Downstream includes agents, distributors, retailers and consumers.

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  Water well pipes oil is made up of PG, VG (propylene glycol, glycerin), nicotine salt and various flavors and spices. Nicotine salt is formed by neutralizing nicotine and acid, and belongs to the key process. From last year's 600 yuan/kg to a maximum of 3,000 yuan/kg, the price has increased by leaps and bounds since this year. Nicotine is a controlled commodity in China, and its price is strictly controlled by Chinese cigarettes. Only less than 10 enterprises qualified to purify nicotine meet the standard of Chinese tobacco, which will be the first batch of permitted objects after the national standard is published.

  Yoel mainly uses benzoic acid to blend nicotine in the U.S. market in pursuit of a strong throat sensation. Some domestic start-ups have also begun to research and develop nicotine. Fang Xinwu, co-founder of HOPO Fog School, said Fog School and Hengxin will introduce a compound nicotine salt composed of various acids and nicotine. The advantage is that the nicotine content of a cigarette bomb is 20 mg/ml, and the throat attack can be felt, far exceeding this value, while pursuing faster decomposition speed.

  At present, the pricing power of the glass pipes industry chain is still firmly in the hands of large manufacturers and strong brands. As of August 2018, there are 25,979 glass pipes patents in the world, of which China accounts for 87%, most of which belong to large manufacturers.Jet water pipes production has long been the seller's market. The contract factory is willing to start after receiving the deposit or even all the money, and the brand can only retrieve the goods after paying the balance. In addition, only a strong brand can promote the sales of downstream agents through the brand premium and have greater profits.

  Weak as some small production workshops in Shenzhen Shajing and Xixiang Street, they are large in number and generally lack competitiveness. In order to snatch orders, the cost of each brand can be calculated, only 5% of the labor cost is required.

  Industry insiders said that most glass pipes are priced between 299 yuan and 399 yuan, the actual production cost is about 1/10 of the terminal price, and profits can be realized within 2 to 3 months after delivery. Its cash rate of return is good, which is a better investment target in the cold winter of capital. At this stage when competition is too intense, the first indicator to measure each brand's data is not gross profit, but channel.

  02 query

  Imitation of incense is the most difficult and unnecessary. "Practitioner Li Ming told him 100 million euros. Usually, according to the brand's understanding of taste, the brand will cooperate with the oil plant, thus making the oil plant modulate the exclusive taste. Once a certain fragrance is determined, the oil plant will lock in the brand formula.

  However, taste does not constitute competitiveness. It is also mung bean flavor. Some brands are defined as green bean paste and others as mung bean popsicles. Behind different tastes is the brand's understanding of products and the helplessness of homogenization competition at this stage.

  Another trend in taste is that it is becoming more and more diversified. Iced mango smoothie cream with Pomello, litchi lady ice, white peach jelly tea, redjade watermelon ice, frozen lemon tea, old popsicles, fresh grapefruit. At first glance, these complex tastes sound like tempting drinks in beverage shops, but they are sugar-coated shells, which make new users fall in love with glass pipes.

  This is the result of market choice. Compared with Europe's 5%≤7% and the United States' 13%, China's glass pipes has a permeability of only 1%. Consumers in mature markets are more picky because they know what tastes they need. The "magic flute" has been used in the United States for nearly 10 years. Its taste represents the classic water well pipes and is suitable for mature smokers. Compared with emerging markets such as China, the Middle East and South America, glass pipes has just become popular. It is necessary to educate channels and users. Newcomers are more likely to accept the taste of high reduction and high sugar.

  Juul's popularity in the United States is largely due to its initial classification as an ordinary consumer product, which enables many high school students in the United States to have unrestricted access to nicotine and become nicotine addicts without knowing its harm. This is the criticism now received by the lookah seahorse coil industry. At present, most glass pipes in the market are aimed at pleasing young users, taking encouraging attempts as the starting point, taking mainstream trends, fashion and other concepts as the starting point, and aiming at more and more new smokers. It is a tacit understanding to every family. In contrast, new smokers who try glass pipes have no strong correlation with cigarettes and require less taste.