People's Daily: E-Cigarette Companies Must Face Their Social Responsibility

■ Data shows that as of August 2018, the number of e-cigarette patents owned by China accounted for 87% of the global total e-cigarette patents. Industry insiders said that in terms of atomizing e-cigarettes, China leads the world in terms of technical level; in terms of heating tobacco products, China still needs to work hard to break down the patent technical barriers in European and American countries.

■ Globally, the e-cigarette consumer market has shown explosive growth and triggered fierce competition for capital. However, changing regulatory policies and international trade situation are adding many uncertainties to the development of the e-cigarette industry.

■ Although China's e-cigarette industry has huge development potential, experts pointed out that to achieve a balance between the e-cigarette industry and public health, it still requires the joint efforts of our country's government, enterprises, academic circles and other parties.
 

In recent years, the electronic cigarette industry“More and more famous companies are appearing on the track. At the beginning of this year, domestic technology company Hammer Technology announced its entry; some investment institutions, such as IDG Capital, Source Code Capital, Zhenge Fund, etc., also spared no effort to invest heavily.

“Big names are gathered, and e-cigarette entrepreneurship is surging. In the reality of increasingly dense commercial layout, how to protect public interests and public health?

In Shenzhen, there are not a few companies specializing in the production and marketing of e-cigarettes. Data provided by the Electronic Cigarette Industry Committee of China Electronics Chamber of Commerce shows that globalMore than 90% of e-cigarettes are produced in Shenzhen and surrounding areas. From workshop-style production to group operations, to Internet entrepreneurship and capital market competition, as the industrial chain gradually matures, the e-cigarette industry has developed rapidly.

What is the current position of China in terms of e-cigarette technology research and development?

“As of August 2018, there were a total of 25979 e-cigarette patents in the world, and China had 22825 patents, accounting for nearly 87.9%. rdquo; Ao Weinuo, secretary-general of the Electronic Cigarette Industry Committee of China Electronics Chamber of Commerce, introduced that among new tobacco products, many core invention patents for heated tobacco products are currently held by American tobacco giant Philip Morris International and British tobacco giant British American Tobacco; and the main and high-quality patents of the atomized e-cigarettes that currently occupy the mainstream of the market are in the hands of China companies.

Reporters inquired about financial data service providersWind database and Beijing Hankun Law Firm research report found that there are currently at least 12 listed and listed companies involved in the e-cigarette industry in China, including 7 A-share listed companies, 2 Hong Kong-listed companies and 3 New Third Board listed companies.

Strong market demand also attracts traditional tobacco companies“Enter the game. Tobacco companies in some places in China have established new tobacco business departments to try to enter the e-cigarette market.

The growing e-cigarette supply chain serves the explosive growth of the global consumer market.

According to the "published by the Institute of Tobacco Economics of the State Tobacco Monopoly AdministrationAccording to the 2018 World Tobacco Development Report, global e-cigarette sales in 2018 were approximately US$14.52 billion, a year-on-year increase of 27%, and an increase of more than ten times compared with 2010; in 2018, the number of consumers of new tobacco products (including heated tobacco products and atomized e-cigarettes) is estimated to have exceeded 40 million, and is expected to increase to 64 million by 2022.

Compare global surpassingWith cigarette sales of US$540 billion, e-cigarette sales are not large. However, compared with the year-on-year decline rate of cigarettes, the growth rate of e-cigarettes is very considerable.

The United States is the world's largest consumer market for e-cigarettes.In 2018, e-cigarette sales in the United States were US$5.6 billion, a year-on-year increase of 20.5%; followed by the UK market, with sales of US$2.43 billion, a year-on-year increase of 36.6%. Italy, Germany, France, etc. are also major consumers of e-cigarettes.

The huge e-cigarette market has triggered fierce competition for capital. Major tobacco giants, such as Altria, British American Tobacco, Empire Brands, etc., have poured into the e-cigarette market by acquiring e-cigarette companies or developing new products. In addition, there are also many brands in the automotive, pharmaceutical and other industries“Cases of cross-border entry.

While capital is fighting fiercely, changing regulatory policies around the world have exacerbated uncertainty in the e-cigarette industry.

this yearOn June 25, San Francisco city officials approved a decree banning the sale of e-cigarettes containing nicotine or other devices not approved by the U.S. Food and Drug Administration, becoming the first city in the United States to ban e-cigarettes.

Canada, Japan, Brazil, India……“The policy dark clouds of banning the sale of e-cigarettes hover over many countries and regions. According to a 2018 survey by the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce, more than 50% of China companies have slowed down R & D investment and development pace due to concerns about policy risks.

Currently, the domestic e-cigarette industry is waiting for the introduction of national regulatory policies. Some insiders believe that the first thing e-cigarette companies need to do is to face up to their social responsibilities.

“Nowadays, there are many practitioners in the e-cigarette industry, and the quality of products is uneven.& rdquo; The person in charge of an e-cigarette company in Shenzhen said that before relevant national standards and regulatory policies are issued, we call on our peers to exercise self-discipline, ensure product quality, not engage in false publicity, and not promote or sell e-cigarettes to young people. rdquo;

Xu Xiaoxin, associate professor at the School of Social Development and Public Policy at Beijing Normal University, pointed out that achieving a balance between industrial development and public health requires the joint efforts of many parties.

“The government should play a role in establishing a regulatory institutional framework in terms of age limits, advertising promotions, product standards, risk warnings, etc., and improving execution capabilities; the e-cigarette industry should practice corporate social responsibilities; the academic community should strengthen scientific research on the health impact of e-cigarettes; The public health community and the education community should work together to strengthen health education for young people. rdquo; Xu Xiaoxin said that only in this way can we jointly help achieve a healthy China. rdquo;

Source:people's daily online- Guangdong Channel

Reporter:Lu Shaogang Hu Weihang Wang Nan