YOOZ Distributor Recruitment and Analysis of China's Vaping Industry

Chinese e-cigarette companies and the e-cigarette market in China are on the rise, with a new batch of e-cigarette brands emerging, including RELX. In the absence of a team that meets his specific requirements, Cai Yuedong decided not to wait passively and 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, both of whom have experience in building successful brands. Furthermore, YOOZ's core team includes executives from Uber, Procter & Gamble, NVIDIA, and Dell, possessing rich experience in channels, promotion, and supply chain.

On January 20, Cai Yuedong posted a poster in his social circle stating, "Starting anew, we need your support!" YOOZ e-cigarettes began launching direct sales in social circles. Notably, YOOZ's first direct sales did not follow the common practice of selling single sets but instead offered three different levels of packages. These three specifications are: 18 sets for 5,800 RMB; 60 sets for 18,800 RMB; and 150 sets for 36,800 RMB. For this method that resembles social circle distribution, Cai Yuedong stated that since the total quantity of the first batch of e-cigarette products is not large, they hope to sell in social circles, which are semi-acquaintance relationships, to capture 100 "big customer nodes"—that is, early core users willing to trust the YOOZ team.

These "big customer nodes" serve two main purposes: first, they will be more proactive in providing user feedback, facilitating more efficient product iteration for YOOZ; second, their identities are primarily entrepreneurs or executives from various industries, which gives them a certain influence, making their social dissemination more effective.

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

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

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

Cai Yuedong: I have been in contact with tobacco 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 try entering the e-cigarette field, leading to a phase of intense competition. I estimate that within six months, the battlefield will be 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 top 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 does not match their expectations after entering the market. This business is complex in terms of both product 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.

New Voice of Consumption: In the face of sudden market competition, what capabilities 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 area. Thirdly, they should have a global perspective on the industry from the outset. Because in the future, to cope with political uncertainties, there may be a need for products to go overseas. #p#分页标题#e#

We need the team to have a very strong ability to respond to uncertainties. For example, market, policy, capital, and user uncertainties can all occur.

Therefore, I hope this team consists of serial entrepreneurs combined with executives from foreign enterprises or multinational companies. Those who have experienced many entrepreneurial challenges will be more resolute when facing uncertainties and remain calm in a complex market. At the same time, they should also prepare for a reserve of global talent.

New Voice of Consumption: When building a team, is it necessary 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. 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 can be applied to e-cigarette production.

New Voice of Consumption: You mentioned that there are many unsatisfactory aspects of existing products in the market. What do you consider an ideal product, and to what extent has YOOZ achieved that?

Cai Yuedong: First, I must say that I cannot find faults with it myself. I believe we need to solve some industry problems, such as structure, materials, and leakage issues, etc. However, my requirement for the initial product is to be somewhat better than the market products, making it practical. Currently, the product does not meet my final expectations.

New Voice of Consumption: What specific issues need to be addressed? How to solve them? For example, leakage?

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

New Voice of Consumption: From the consumer's perspective, when they receive YOOZ products, can they immediately perceive 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 our product with JUUL; we are indeed better in craftsmanship. Secondly, in terms of functionality, its stability is much higher.
New Voice of Consumption: 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. We also used the "FEELM metal membrane atomization" ceramic core technology.

New Voice of Consumption: YOOZ chose to launch products during the New Year period. Regarding the "first shot," YOOZ adopted multiple bundled sales methods and primarily promoted 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, so we cannot produce many products right away. The quantity of our first batch of products is about 10,000 sets, less than 20,000 sets.

My idea was to see if we could push the model of pre-selling new products directly to users while creating a marketing event.

We, the partners, sat down together and discussed: can we sell this batch of goods worth 5 million RMB through our social circles? So we decided on this social circle sales model, selling only New Year gifts, i.e., gift sets. We even created a mini-program to facilitate VIP user purchases.

After selling these goods directly, we found at least 100 "big customer nodes." These users gifted YOOZ to friends, and we received daily feedback, allowing us to continue product iteration based on their opinions.

New Voice of Consumption: Currently, many new e-cigarette brands are emerging in the market. What is YOOZ's brand positioning, and how do you establish brand awareness?

Cai Yuedong: Our current definition is to be more technology-driven and fashionable. First, the product should look good in photos and have high aesthetic value, conveying the same message across all materials. We are very mature in brand building; communication should focus on doing one thing well.

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

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

At the same time, I believe that channels play a crucial role here. Channels not only serve to promote the brand. We are willing to offer benefits to channels, allowing the distributors and agents we cooperate with to help us educate users and the market.