Huoqi Acquires NOS, Signs 19 Distributors in a Week

On July 10, the first publicly listed e-cigarette company, Smoore International, debuted on the Hong Kong Stock Exchange, opening up 125.81% higher on its first day and closing with a 150% increase, giving it a total market value of HKD 178 billion. Smoore's listing has clearly provided a boost to the e-cigarette industry, igniting a surge in related stocks, and many e-cigarette practitioners are exclaiming: the golden age of e-cigarettes has arrived!

For the e-cigarette industry, "policy regulation + product upgrades" have catalyzed healthy growth. With no restrictions from policies, the future looks promising, and opportunities still exist.

On July 6, the well-known e-cigarette brand Huoqi, under the Borton Group, officially announced the acquisition of the NOS e-cigarette business and launched the new Huoqi NOS product in mid-July, initiating a new round of recruitment for distributors and specialty stores nationwide.
 
  As the first true merger in the domestic e-cigarette industry, Huoqi's acquisition of NOS has sparked heated discussions within the e-cigarette community. Following the acquisition, Huoqi has also entered a dual-brand operation era, further expanding its brand advantages and steadily increasing its market share.

According to the person in charge of Huoqi NOS, after launching the recruitment, they have been signing 2-3 distributors daily, and within just one week, they have signed 19 city-level distributors. Some distributors even flew directly from Chengdu to sign contracts at the company on the day after the acquisition announcement.
  The first signed distributor for Huoqi NOS stated: "I have been in the store business in the city for ten years, and last year I opened two ammo stores, just as the e-cigarette trend was taking off. By the second month of opening, I was already in a crazy profit mode, so I decisively chose to join NOS because I believe in Huoqi's products. This is my third Huoqi store. As a leading e-cigarette brand under Borton, Huoqi is nearly perfect in every aspect. Moreover, with the fierce competition in the offline e-cigarette industry, if you don't act quickly, you'll regret it when the products start selling well."
  Why is Huoqi NOS so popular among e-cigarette practitioners? Besides Borton Group's strong background and Huoqi's stable e-liquid technology, the product performance and distributor policies of the new Huoqi NOS cannot be overlooked.

Huoqi has made two significant upgrades to the NOS new product: one is the upgrade of the black ceramic atomization technology and PCBA software version to enhance atomization effects; the other is the re-formulation of eight new flavors, focusing on a cooling series that caters to the characteristics of the summer season, making it more favorable for market penetration. In terms of policy, NOS distributors can enjoy relevant subsidies and support policies from Huoqi, and Huoqi has also launched 20 discount slots, providing distributors with unprecedented subsidies and support.

Since the online sales ban in November 2019, offline has become a battleground for various e-cigarette brands. As early as the beginning of 2019, Huoqi began laying out offline channels, opening over 300 offline stores nationwide from March to December. Huoqi NOS has had a hot start and is expected to perform exceptionally well at the upcoming Shenzhen e-cigarette exhibition.
  Starting in July 2020, Huoqi has intensified the supervision of offline stores, implementing comprehensive measures from policy promotion and personnel training to irregular inspections, fully enforcing the national regulations on "prohibiting the sale of e-cigarettes to minors" and "further protecting minors from e-cigarette harm." It is reported that in August, Huoqi will launch the "Light Up Guardian Angel" campaign across all stores, unifying efforts to promote the "Guardian Angel Plan."

According to Dongwu Securities data, in recent years, the tobacco market has steadily expanded, but traditional cigarette retail volumes have continued to decline, and the market share of cigarettes has decreased year by year. In contrast, the e-cigarette market size grew from $12.4 billion in 2014 to $36.7 billion in 2019, with a nearly threefold increase in market share. As the e-cigarette industry matures further, it is expected that by 2024, the e-cigarette market share will reach $111.5 billion, accounting for 9.3% of the tobacco market, becoming an important segment. #p#分页标题#e#

From the production side, Huoqi's monthly sales of e-liquid pods reached the second highest in the industry as of May this year, and from May to now, Huoqi continues to launch special new flavors at an average rate of three new flavors per month. If the e-cigarette industry has indeed entered a golden age, then Huoqi is the brave one riding the waves, fully implementing policies, crafting products with dedication, and steadily advancing in the context of "policy regulation + product upgrades" to foster healthy industry growth.