Chinese E-cigarette Company YOOZ Distributor Recruitment and Industry Analysis

The Chinese e-cigarette company and the domestic e-cigarette market are on the rise, with a new batch of e-cigarette brands emerging, including RELX. Unable to find a team that met his specific requirements, Cai Yuedong decided not to wait passively and instead chose to build his own team and start a new venture.

In addition to Cai Yuedong, YOOZ's co-founder is He Chang, the founder of Huang Taiji, and both have experience in building successful brands. Furthermore, YOOZ's core team includes executives from Uber, Procter & Gamble, NVIDIA, and Dell, who bring rich experience in channels, promotion, and supply chains.

On January 20, Cai Yuedong posted a poster in his social circle stating, "Starting a new venture, we need your support!" YOOZ e-cigarettes began launching their products for sale in social circles. Notably, YOOZ's first sale did not follow the common practice of selling single sets but instead offered three different levels of packages. The three specifications are: 18 sets for 5,800 yuan; 60 sets for 18,800 yuan; and 150 sets for 36,800 yuan.
Regarding this method that resembles social circle distribution, Cai Yuedong stated that since the total amount of the first batch of e-cigarette products is not large, they hope to sell in a semi-familiar relationship environment like social circles to capture 100 "key customer nodes"—that is, early core users willing to trust the YOOZ team.

These "key customer nodes" serve two main purposes: first, they will actively relay user feedback, allowing YOOZ to iterate products more efficiently; second, their identities are primarily entrepreneurs or executives from various industries, giving them a certain influence, making social dissemination more effective.

Cai Yuedong believes that the current key point is to efficiently occupy the market. Therefore, they chose to collaborate with the new three-board company, Microwell, to improve material costs and produce better products than the market level to meet consumer demand. At the same time, YOOZ is actively collaborating with distributors and agents in major cities, hoping to work together by offering them more profits, achieving market education while completing market occupation.

Below is a summary of part of the dialogue between "Consumer New Voice" (WeChat ID: varitrend) and YOOZ founder Cai Yuedong:

Consumer New Voice: You had many choices at that time; first, there are many industries to choose from. Why did you choose e-cigarettes? Second, you could choose to invest in a new team; why did you choose to start your own business?

Cai Yuedong: I have been in contact with smoking since high school, and there is an emotional connection to this endeavor. Additionally, when I learned about the atomization technology of e-cigarettes, I thought it was an incredible technology. In the past, when consumers sought pleasure from nicotine, they also brought more harm. I saw a new way to pursue pleasure with e-cigarettes.

About six months ago, I received many related business proposals and saw that the e-cigarette market was on the rise, with competition becoming fierce. At that time, I felt I had not found a good team or a product that satisfied me. This year, many people will want to tentatively enter the e-cigarette field, leading to a temporary red ocean. I estimate that within six months, this battlefield will become clearer, and a group of leading players will emerge.

My judgment is that the Chinese market is different from the American market; it will not have a single dominant player. Currently, the leading player has emerged, but there is still a possibility for a second player or even several to coexist. However, leading players will attract more diverse resources and move faster, with shorter product iteration times and higher demands on teams.

Moreover, many people will find that the reality of selling e-cigarettes is not what they imagined after entering the market. This business is complex in terms of both products and capital. For example, many investors cannot invest in this category; in terms of market promotion, many channels cannot advertise e-cigarettes, requiring more flexibility.

Consumer New Voice: In the face of sudden market competition, what abilities should the team possess?

Cai Yuedong: First, they must have a sufficient understanding of e-cigarette products and possess a good product. Secondly, the team needs to have comprehensive entrepreneurial capabilities, with strengths in every sector. Third, they should view the industry with a global perspective from the start. Because in the future, to cope with political uncertainties, there may be a need for products to go overseas.

We need the team to have a strong ability to respond to uncertainties overall. For example, the market, policies, capital, and even users can all experience uncertainties.

Therefore, I hope this team consists of serial entrepreneurs combined with executives from foreign enterprises or multinational companies. Those who have experienced many entrepreneurial trials will be more resolute in the face of uncertainties and remain calm in a complex market. At the same time, we must prepare for global talent acquisition.

Consumer New Voice: When building the team, do you need to specifically establish a research and development team?

Cai Yuedong: We will look for people from the mobile phone industry to work on e-cigarettes. Because I believe the mobile phone industry is relatively mature, and the people in the industry have gone through a complete competitive process. Therefore, the production capacity and some development ideas from mobile phones can be applied to e-cigarette production.

Consumer New Voice: You mentioned earlier that there are many unsatisfactory aspects of existing products in the market. What do you think an ideal product looks like now? To what extent has YOOZ achieved this?

Cai Yuedong: First, I certainly cannot find fault with it myself. I think we need to solve some industry problems, such as structure, materials, and oil leakage, etc. But my requirement for the initial product is to be somewhat better than the products on the market, making it practical. Currently, the product does not meet my final expectations.

Consumer New Voice: What specific problems are there? How to solve them? For example, oil leakage?

Cai Yuedong: From a structural perspective, this will take some time. We are also working on it.

Consumer New Voice: From the consumer's perspective, when they receive YOOZ's products, can they immediately notice the "better quality" you mentioned? What are the points of perception?

Cai Yuedong: Quality. The first impression is high-end; there are many metals in the materials, and our craftsmanship is better than others. You can compare JUUL with our products; we are indeed better in craftsmanship than JUUL. Secondly, in terms of functionality, its stability will be much higher.
Consumer New Voice: How is this achieved?

Cai Yuedong: It takes time to adjust the structure. Specifically, we find the best materials and supply chains, using the best materials and working with the best companies, collaborating with this supply chain. We also used the "FEELM metal membrane atomization" ceramic core technology.

Consumer New Voice: YOOZ chose to launch products during the New Year period. In terms of "taking the lead," YOOZ adopted multiple bundled sales methods, mainly promoting sales through social circles. What was the thinking behind this?

Cai Yuedong: During the New Year, all market activities will be affected. Moreover, our production capacity is still in a stage of adjustment, and it is impossible to produce a large number of products right away. The quantity of our first batch of products is about 10,000 sets, less than 20,000 sets.

My initial thought was whether it was possible to push the model of pre-selling new products, directly selling existing stock to users while creating a marketing event.

A few partners and I sat down to discuss: Can we sell this batch of goods worth 5 million yuan through our social circles? Thus, we decided on this social circle sales format, only selling New Year gifts, which are gift sets. We also specifically created a mini-program to facilitate VIP users' purchases.

After these goods were sold out, we found at least 100 "key customer nodes." These users gifted YOOZ to friends, and daily feedback came back to us, allowing us to continue product iteration based on their opinions.

Consumer New Voice: Currently, many new e-cigarette brands have emerged in the market. What is YOOZ's brand positioning? How to establish brand awareness?

Cai Yuedong: Our current definition is more technological and fashionable. First, it should look good in photos, with high aesthetics, conveying the same signal across all materials. We are very mature in brand building; communication should focus on doing one thing well.

Many other e-cigarette brands may have similar concepts, but their routes are still relatively chaotic. For example, they may take an artistic route online but switch to a fashionable route during promotions, presenting different feelings in different scenarios, which is very inconsistent.

This is why I must find 100 key customer nodes, these early users. Because e-cigarettes will be a product with social dissemination attributes; if a user likes it, they will definitely promote it themselves. We need these earliest users to have their own thoughts, helping us gradually spread our reputation from a small scope.

At the same time, I believe that channels play a crucial role here. Channels not only serve the purpose of brand promotion. We are willing to educate users and the market by offering profits to the distributors and agents we cooperate with.

Consumer New Voice: I see that you have made many investments and are looking for agents, which I haven't seen from other brands so far. Why do you need so many agents?

Cai Yuedong: The details of our agent partnerships are not convenient to discuss. However, we will hold a dealer meeting after the New Year to gather more interested people from the industry. Recently, many people have called us, and we are busy bringing in customers.

Consumer New Voice: However, there is a view that the charm of the e-cigarette business lies in its ability to shorten the sales process significantly?

Cai Yuedong: The e-cigarette market is still not a very mature market; this product is a channel product. What does a channel product mean? It means that it requires many people to work with you to tell users how to use it and use it well, which is very important.

Consumer New Voice: Having agents means needing rules. What are your rules?

Cai Yuedong: We hope they have basic capabilities and resources. On the other hand, I hope they can cooperate with a long-term growth mindset alongside the brand. If interested, you can contact WeChat: hswx9981 or call: 17682343645. This is the contact for the general agent, and you can get the best price.