In an office in Chaoyang district of Beijing, Wei Lu, vice president of jianma biotechnology (Hainan) co., ltd., showed reporters his "collection"-not less than 50 water pipes of various brands.
Some water pipes look like ordinary glass pipes products, while others look like daily necessities such as pens and usb memory sticks. The terminal price is usually 100 yuan, while the factory price is mostly around 50 yuan.
How much money can the company make? "Most companies cannot make money now," said Mr. Wei. Most companies spend their money on channels,' if you don't spend money at first, the channel won't let you do it lookah seahorse coil unless you make more profits. Therefore, most of the profits must be subsidized to the channel, but once you form a strong brand, the channel will come to you to receive goods, and this process is doomed to pass.
As the C-terminal carrier of Hanma Biotech, Jianma Biotech's main business is the design and development of consumer-grade atomized water pipes, the preparation and processing of high-quality natural smoke oil, and the research and development and production of industrial hemp extract cosmetics. Wei Lu told reporters that the water pipes business currently accounts for about 60% of the company's total business.
According to incomplete statistics FLOW the media, since June 2018, there have been nearly 30 investments in the water pipes field, including RELX yueke, IJOY aizoui, yibo electronics, Gippro dragon dance, flowfulu, refined salt technology, Xiao Ye water pipes, etc. the capital behind them are real funds, sunac capital, inno fund, source code capital, etc. Among them, Aizoui Company even received round A financing of 300 million yuan, while Magic Flute MOTI received round A financing of 31 million US dollars from Heyu Capital.
At the policy level, the focus is also on this aspect: on July 22, Mao Qun Nan, director of the planning department of the National Health Council, announced his position on the supervision of the water pipes industry. He revealed that the National Health Council is currently conducting a special study on the supervision of water pipes with relevant departments and plans to carry out legislative supervision of the water pipes industry.
On July 26, the World Health Organization released a report calling on governments and consumers not to trust glass pipes to promote products such as water pipes. The report said that the so-called "minor damage to water pipes" was only the propaganda strategy of glass pipes enterprises and the supervision of water pipes market should be strengthened. Water pipes is the most common electronic nicotine delivery system, which delivers mist to users through heating solutions. Water pipes can be roughly divided into two categories, one is water pipes represented by U.S. Yoel and the other is non-combustion lookah water pipes represented by iQOS. Due to the current control of non-combustible water pipes heating in our country, start-ups mainly produce smoke-like water pipes.
Water pipes consist of smoke columns, sprayers and smoke bombs, which can be recycled. Smoke bombs are consumables and need to be purchased separately after smoking. The quantity of each cigarette bomb is about two packs of cigarettes, usually the price is about 30 yuan. It is obviously necessary to buy back cigarette bombs-all players have their own space.
In February this year, Meihua Venture Capital and Juwei Group jointly invested in Yistar, a water pipes enterprise, with a scale of 10 million yuan. Wu Shichun, founding partner of Plum Blossom Venture Capital, told reporters that the profits of cigarette rods are not high, and the profits of cigarette bombs are high and can be consumed. At present, we are all attracting channels, so we will subsidize and attract these channels. Investors will pay attention to the marketing ability, supply chain management ability and product development ability of the team. But for now, marketing ability is more important, the key lies in whether we can start quickly. "。
From the current perspective, the local water pipes market has great room for growth. The penetration rate in the U.S. water pipes industry is about 13%. currently, there are about 350 million smokers in China, but the penetration rate of water pipes is only slightly higher than 1%. Many companies and investors are aiming at this track, and celebrities in technology and other fields have entered this field, such as Luo Yonghao, Cai Yuedong, founder of Tongshu, and Xiaomi's top 21 employees.
Wu Shichun said: "With nearly 30 rounds of financing and less than tens of millions of RMB, the enthusiasm of funds for domestic water pipes enterprises has not weakened in the past year. This is just an announcement. Investment in the industry has increased but has not yet been announced. " There are a large number of smokers in China. If they can use a product to stop smoking or to replace part of the demand for smoking, a very large market can be created.
According to a study by Guosheng Securities, the global glass pipes market has a size of US$ 770 billion. When the water pipes market penetration rate is 1.56%, the market size is US$ 12 billion. If the market penetration rate reaches 3%, the market size is 23.1 billion US dollars.