What Did Industry Leaders Say at the 2018 Shenzhen International E-Cigarette Expo?

On October 1, the 2018 China (Shenzhen) International E-Cigarette Expo, guided by the Electronic Cigarette Industry Committee of the China Electronic Commerce Association and organized by Reed Exhibitions (Shenzhen) Co., Ltd., officially opened for three days.

As a major event in the e-cigarette industry for the second half of the year, over a hundred leading e-cigarette brands, including Sigelei, Hengxin, Green Yunda, IBuddy, IJoy, Aspire, VGOD, Klyp, and Fangzheng, gathered at Hall 7 of the Shenzhen Convention and Exhibition Center to showcase their new e-cigarettes, e-liquids, pod systems, atomizers, batteries, and other related products.

On the first day of the expo, the E-Cigarette Industry Summit Forum was successfully held, attracting participation from international e-cigarette industry associations and friends from Germany, Canada, Indonesia, Malaysia, and the United States. For the first time, discussions on global e-cigarette industry policies, market conditions, and development trends were held, hosted by Lin Hanzhong, Vice President of the Electronic Cigarette Industry Committee of the China Electronic Commerce Association, with dialogue guests including Sigelei's Ou Junbiao, Green Yunda's Huang Guihua, IBuddy's Liu Xiang, and IJoy's Wang Xizhi, who discussed the future development trends of the e-cigarette industry.

The E-Cigarette Industry Summit Forum was lively

In 2018, the global e-cigarette industry showed a trend of stabilization and progress, particularly with the entry of capital in the second half of the year, leading to a new round of market reshuffling. The year 2019 is expected to be a "Quality Year," where the industry will focus on quality, innovative models, and technology-driven development. In terms of industry regulation, countries around the world are introducing corresponding guiding and permissive measures. Countries like Germany, Canada, and Indonesia have shifted from complete prohibition to partial allowance and licensing, with industry regulation becoming more rigorous and open. Domestic leading enterprises expressed confidence in the future development trends, emphasizing research and development, independent branding, capital integration, and market layout. Lin Hanzhong, Ou Junbiao, Huang Guihua, Liu Xiang, and Wang Xizhi provided their insightful perspectives on these matters. Let's take a look at what these industry leaders said at the international e-cigarette expo.


Leaders of various e-cigarette associations delivered keynote speeches

【Voices from Associations】

1. Legalization of E-Cigarettes in Canada Leads to Market Surge

At the forum, Daniel David, President of the Canadian E-Cigarette Association (ECTA), introduced the regulatory policies, market conditions, and future recommendations for e-cigarettes in Canada. Daniel David believes that the S-5 bill of the Canadian Tobacco Act, which allows the sale of vapor products to individuals aged 18 and older, has been approved, but it restricts advertising, including banning all lifestyle ads and sponsorships and celebrity endorsements. The implementation of this policy marks the official legalization of the e-cigarette market in Canada, allowing product labeling to state, "For smokers, switching to e-cigarettes is a relatively lower harm choice," leading to a sharp increase in market sales.

Although Canada currently has only 923 dedicated e-cigarette stores, 107 convenience stores, and 75 large e-liquid manufacturers, with 12 small hardware manufacturers, domestic e-liquid accounts for 85% of the market share, while international e-liquid accounts for 15%. This does not hinder the development of the local market, especially in Ontario, which represents 41% of the physical store industry, with the number of physical stores increasing by 50% annually. Fruit flavors, nicotine, and ice cream flavors dominate 95% of the Canadian market, with 60ml e-liquids being the most popular due to their compact, convenient, and portable nature. In future developments, the ECTA will focus on four aspects to improve Canadian e-cigarette regulations, such as understanding and researching applicable industry standards, establishing nationally recognized industry standards, guiding members through compliance procedures, and ensuring audit and review support in collaboration with the Canadian government to ensure that the laws are appropriate and correct.

2. Legalization of E-Cigarettes in Indonesia Leads to Market Regulation and Sustainable Improvement

Edy, Secretary-General of the Indonesian E-Cigarette Association (APVI), highlighted the 57% consumption tax and the issuance of licenses for taxable merchants (NPPBKC). Since July 1, electronic cigarette taxes have been officially levied, and on July 18, the Indonesian government issued its first e-cigarette business license, marking the official legalization of the e-cigarette market in Indonesia. In Indonesia, the annual sales volume of physical stores is 3.5 trillion rupiah, with annual e-liquid sales of 3-4 million bottles. In 2017, the number of users was 900,000, with 650,000 active users. Edy believes that in future developments, regulations should be established regarding taxes, market guidance education, e-liquid capacity, local market protection, certification standards, product warning labels, minimum nicotine levels, advertising, product classification, and simplification of production processes.
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3. What Do European and American Users Want in E-Cigarettes?

Thomas, organizer of the Berlin E-Cigarette Expo (Intersteam), and international internet celebrity Michael Lee introduced the current market conditions, user preferences, and future product trends in Europe and America. Most users prefer products with a sense of technology, modern and futuristic design, high performance, and compact e-cigarettes that are most appealing and attractive to them.

The launch of the "History of the E-Cigarette Industry" has been revealed, and the establishment of the "Vapor Culture Research Institute" is in preparation.

In response to the varying global industry policies, Lin Hanzhong, Vice President of the Electronic Cigarette Industry Committee of the China Electronic Commerce Association, stated that by reviewing the stories of companies that have emerged over the past 15 years in the e-cigarette development process, with independent innovation as the main line, the committee will focus on writing the "History of the E-Cigarette Industry" and plans to establish the "Vapor Culture Research Institute" in collaboration with global quality experts and scholars to conduct scientific research and dialectically understand e-cigarettes.

Media such as Guangdong Television conducted on-site interviews.

【Voices from Enterprises】

During the dialogue session on "Discussing the Future Development Trends of the E-Cigarette Industry," host Lin Hanzhong engaged in discussions with representatives from mainstream e-cigarette companies on current situations, product forms, capital entry, industry regulation, and hot topics.


1. Ou Junbiao: Cooperation with Capital Should Be Cautious and Have Boundaries

Ou Junbiao, Chairman of Guangdong Sigelei Electronic Technology Co., Ltd., believes that 2018 is the quality year for the e-cigarette market. In the first half of the year, more companies focused on brand and quality development, while the second half is a phase of adjustment and layout. Many companies are focusing on developing in emerging international markets, whether for small vapes, large vapes, or heated non-combustion products, everyone is adopting an open and inclusive attitude, progressing together, and the market is diversifying. Companies must strictly adhere to the laws and regulations of various countries regarding e-cigarettes, maintaining good growth momentum in export earnings. The combination of industry enterprises and capital can sometimes be a strong alliance, but one should not underestimate their own development strength. It is essential to focus on building independent brands and not to sell their brands or companies cheaply, especially their patented technologies. Cooperation with capital should be cautious and have boundaries. Regarding the current hot topic of "Are E-Cigarettes Safe?" Ou Junbiao summarized his remarks as "That's not an issue"; the international acceptance of e-cigarettes proves that the product is still embraced by users worldwide.

2. Huang Guihua: Increasing R&D is the Company's Responsibility

Huang Guihua, Chairwoman of Shenzhen Green Yunda Technology Co., Ltd., emphasized the importance of strengthening technological research and development based on her company's development history. She stated that the company started with stick vape products and has always focused on product R&D. Without sufficient preparation, they will not easily venture into other product areas. In the second half of this year, the company independently developed a solid-state e-cigarette that replaces e-liquid with atomization paste, successfully launching the world's first solid-state e-cigarette. This new type of e-cigarette does not use reconstituted tobacco leaves, tobacco, cigarette paper, or tobacco-specific machinery, allowing for more optimized flavor breakthroughs. Therefore, they will maintain an open attitude towards the development of new product forms, and regarding capital entry, they will also be cautious, which may relate to her personality as a woman; they prefer to focus on their own products before considering embracing capital.

3. Liu Xiang: Companies Need to Be Attentive and Inclusive

Liu Xiang, Chairman of Shenzhen Bodi Technology Development Co., Ltd., stated that European and American countries have relatively well-developed regulatory policies for e-cigarettes, such as the classification management of the European TPD and the age restrictions imposed by the FDA in the United States, which clarify the industry boundaries for e-cigarettes. The domestic e-cigarette market is also continuously being standardized, so e-cigarette companies need to have more awareness and correct understanding. While capital entry is certainly a "bonus," it should also be suitable for each company's unique situation, as not all companies are the same.

4. Wang Xizhi: Capital Choices Should Be Multi-layered

Wang Xizhi, Chairman of Aizhuo Group, believes that the development of e-cigarettes is based on the continuous innovation of technology by predecessors, and industry insiders should cherish and protect this. Currently, large vapes remain the mainstream product, and capital entry should involve multi-layered participation. Professional matters should still be handled by industry insiders; it can be purely financial investment without participating in daily management and operations, or it can involve sales channel or technological innovation investments. Companies should choose suitable capital and resource partners, and not purely pursue capital while neglecting their own needs. In addressing the issue of e-cigarette safety, Wang Xizhi noted that carbonated beverages also pose risks to health, and one should not hastily define e-cigarettes as harmful.

The inaugural 2018 China (Shenzhen) E-Cigarette Expo has officially elevated the discussion of e-cigarettes to an international level. The participation of multiple countries has attracted significant attention from domestic and international merchants, with a growing number of professional buyers and inspiring viewpoints presented at the international forum. In the current context of Sino-US tensions, Chinese e-cigarettes have struck back against accusations of technology transfer from the US with a strong advantage in intellectual property, representing Chinese manufacturing and patents. With the joint efforts of Chinese e-cigarette companies, the industry's export development will become even more robust, and its international image will further improve.