Shajing is located in Bao’an District, Shenzhen. Although it is only an inconspicuous urban village, it is the source of most of the world’s electronic cigarettes. In this small town with a total area of less than 40 square kilometers, there are nearly 500 shops. Large and small electronic cigarette factories. According to the density, there are more than 10 electronic cigarette factories per square kilometer of manhole land. Such a large industrial scale also reflects the huge scale of the electronic cigarette industry.

Roller Coaster Development

In November 2019, when the electronic cigarette industry in Shajing was just booming, the State Administration for Market Regulation issued the “Notice on Further Protecting Minors from Electronic Cigarettes”, which called for prohibiting the sale of electronic cigarettes through Internet channels. , The rushing Shajing electronic cigarette industry was put on the brakes. However, soon after, with the completion of the industry reshuffle, the top e-cigarette brands quickly opened offline stores, and the e-cigarette factory in Shajing ushered in the second spring.

In 2020, the new crown epidemic swept the world. However, the e-cigarette factory in Shajing did not feel the huge impact of the epidemic. As a special commodity, e-cigarettes are regarded by many smokers as a substitute for physical cigarettes, and even use e-cigarettes as a tool to help themselves quit smoking. Even under the epidemic, this demand has not decreased at all.

At the end of 2020, the Electronic Cigarette Industry Committee of the China Electronic Chamber of Commerce released the “2020 Global Electronic Cigarette Industry Report”. The report shows that the global retail sales of electronic atomized cigarettes in 2020 will be 36.3 billion US dollars, accounting for nearly 50% of the global new tobacco category. The largest new tobacco product. From 2018 to 2020, the scale of my country’s electronic cigarette industry has experienced explosive growth. The domestic retail sales of electronic cigarettes has increased from 5.152 billion yuan to 14.5 billion yuan, an increase of more than 100% in three years, and the export value has increased from 28.72 billion yuan to 14.5 billion yuan. 49.4 billion yuan, an increase of more than 50%.

At the beginning of 2022, the e-cigarette factory in Shajing really felt the chill to the bones. The “Administrative Measures for Electronic Cigarettes” issued by the State Tobacco Administration in March made clear the production, sales, import and export trade and supervision of electronic cigarette products. Restrictions and regulations, which means a complete change in the rules of the game. From 2018, known as the first year of e-cigarettes, to 2019, when online sales were banned, to 2022, when only tobacco-flavored e-cigarettes were allowed to be sold, in less than five years, the e-cigarette industry has experienced a roller coaster ride development.

Regulations Continue to Strengthen

With the continuous expansion of the industry, electronic cigarettes, originally aimed at reducing the harm of smoking and helping to quit smoking, have already broken through the initial concept of harm reduction, and have gradually developed into a new and popular thing, which is even regarded as a social necessity by many young people. However, as a special commodity, the development of electronic cigarettes has gradually attracted the attention of regulatory authorities. Looking at the world, the overall supervision of electronic cigarette products has generally become stricter.

As the world’s largest consumer of electronic cigarettes, the United States has long regarded electronic cigarette products as tobacco products for management. All tobacco product manufacturers must submit applications to the FDA before they can be produced. As early as March 2019, the US FDA has It is stipulated that other flavored e-cigarette products other than tobacco and mint flavors are not allowed to be sold in physical stores. The European Union and the United Kingdom are open to HBN-type tobacco, while there are strict restrictions on e-cigarette products in terms of marketing approval, use occasions, and advertising and marketing. In other countries, such as Brazil, Singapore, Argentina, etc., the import and sale of e-cigarettes is completely banned.

Obviously, all countries around the world have gone through a process from unfamiliar to familiar with electronic cigarettes. After the development of electronic cigarettes experienced the initial explosive growth, it has gradually stabilized with the implementation of policy supervision in various countries. Regulating e-cigarettes as tobacco products is an option in most developed and some developing countries. In fact, the “Administrative Measures for Electronic Cigarettes” was made public in the form of a draft for comments as early as December 2021, and the content is basically the same as the official version of the administrative measures. Although most practitioners were well prepared, the boots still brought huge shocks when they landed.

Future Development

With the implementation of the new e-cigarette policy, there is not much time left for related companies in the e-cigarette industry. Most of the leading manufacturers have already started to adjust and transform since the release of the draft for comments. On the retail side, most of the physical stores of e-cigarettes are facing the end of integration or closure.

The explosive growth of the market can easily create the wrong experience and the nostalgia for the wrong experience. Prahalad’s “learning to forget” is extremely astutely proposed in “Competing for the Future.” To meet the future, companies must be “willing to let go of what was yesterday” and break through the limited memories built on the basis of past successes. Just like a good boatman rowing in a river, the first thing to do when facing the sea is to forget the memory of the past.

The changing environment is like a sieve. After repeated filtration, only those companies that have sufficient ability to adapt and adjust to changes will be left. As “Antifragile” said: “Wind can extinguish the candle, but it will make the firewood burn more and more vigorously.” Adapting to the new rules is the top priority in the e-cigarette industry. It is necessary to break away from past experience, to return the business logic to the origin, and to establish a good state of introspection. Fortunately, the history of e-cigarettes is not long. Fortunately, there are rules for future market competition.

Electronic Cigarette, Disposable Vape Pen – Aierbaita (aierbaitavapes.com)
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Author: Kailee Zhou
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