Behind JUUL's quiet delisting

Earlier, news about JUUL's impending entry into China caused quite a stir in the vaping industry.

On September 9, JUUL officially began selling three of its products through Tmall and JD.com.
  JUUL at launch
However, unexpectedly, just a few days after its launch, JUUL quietly disappeared from Tmall and Taobao around 11 PM on September 13.
  No longer able to see JUUL
Undoubtedly, for the industry giant JUUL, the entire Asian market is crucial for sales and profit growth.

Especially now, with tightening tobacco policies in the United States, the Chinese market is even more critical.

It is particularly noteworthy that, according to Altria and Philip Morris, due to the decline in global cigarette demand, they are in discussions for a $200 billion merger (after separating in 2008). This agreement may be threatened by increased regulatory scrutiny from the U.S. government, which may impose a ban on such e-cigarettes.

In fact, the emergency ban on e-cigarettes in New York this past Monday shows signs of this.
  The disappearance from all channels
According to the World Health Organization, there are over 300 million smokers in China, with nearly 60% being male. In 2018, the China National Tobacco Corporation sold approximately 2.4 trillion cigarettes.

JUUL has not publicly responded to questions about when sales in China stopped or what measures will be taken next.

However, on September 17, JUUL's spokesperson Victoria Davis mentioned in a statement, "Although JUUL products are currently not available on e-commerce sites in China, we look forward to continuing dialogue with stakeholders so that we can offer our products again."

This is a rather intriguing expression.

We can try to reconstruct this process

1. JUUL made significant efforts and invested a lot of money and time to enter Asia and China.

2. Launched on Tmall and JD.com on September 9.

3. On September 13, JUUL's flagship stores on Tmall and JD.com were closed simultaneously.

4. On September 17, the official statement included the phrase "looking forward to continuing dialogue with stakeholders."

The conclusion is quite clear; the likelihood of JUUL voluntarily taking down its products is low, and external factors are likely the cause.

Please note, this is not the key issue; the key issue is what this means for the entire industry.

We all know that third-party selling platforms require almost no qualifications, and anyone can open a store.

Currently, the domestic e-cigarette industry is in a state of a hundred schools of thought contending, and chaos and disorder are the hallmarks of the industry today.

On the other hand, the decline of traditional cigarettes is inevitable, and they cannot be sold online.

The overall regulation of e-cigarettes is bound to be a trend, and online sales may very well become the next target of regulation.

For a newly emerging industry, the future competition for channels and brands among the various e-cigarette manufacturers in the country is likely imminent.