Can Edison Chen’s Endorsement Ignite Luo Yonghao’s Vape Business?

Recently, Li Wenquan, the visual designer of Smartisan Technology, posted on Weibo stating, "I recently took on a big project." From the accompanying image, it can be seen that Luo Yonghao and Edison Chen appeared together. Yesterday, the official WeChat account of Smartisan Technology announced the collaboration, confirming that Edison Chen has been appointed as the special creative officer for vvild, a brand of electronic cigarettes, and filmed a promotional video.
 
Earlier, media reports indicated that Smartisan Technology's CEO Luo Yonghao was preparing to launch an electronic cigarette brand, possibly named "vvild." Subsequently, Luo Yonghao clarified on Weibo that this was the entrepreneurial venture of former Smartisan Technology president Peng Jinzhou to create an electronic cigarette brand.

Public information shows that vvild electronic cigarettes were founded by Peng Jinzhou and others around March 2019, with the first pod product, vvild V0, released in April.

Earlier, Lando New Consumption reported that vvild electronic cigarettes received 30 million yuan in venture capital, with a valuation of approximately 300-400 million yuan. The investors in this financing round were Junsheng Capital and Hongta Group.

Such marketing is truly impressive

In April this year, Luo Yonghao expressed on Weibo his desire to invite Edison Chen to be a spokesperson. He mentioned that in the second half of the year, he wanted to find a group of celebrities to endorse the brand, considering the brand's tone and characteristics, and preferred alternative celebrities, leaning towards Pu Shu and Edison Chen.

Ultimately, Luo Yonghao's wish came true, and Edison Chen became the spokesperson for vvild. He stated on Weibo: "Collaborating with Edison Chen has been a long-held wish of mine and Old Peng (Peng Jinzhou). I never expected it to be realized at Old Peng's vvild Technology, which is truly a mix of emotions. This might be Chen's best short film to date."

In early March this year, it was reported that after some of Smartisan Technology's assets were sold to ByteDance, Luo Yonghao would enter the electronic cigarette field for a second entrepreneurial venture. Prior to this, Luo had introduced the FLOW electronic cigarette project of Smartisan's first employee Zhu Xiaomu at the launch event of the social product "Chat Treasure."

In a recent article published by iResearch titled "What Should Electronic Cigarettes Be?", it was mentioned that electronic cigarettes in China have not developed branded products, and the products on the market are quite scattered. This has made the assembly of parts and private label sales the mainstream model. Most electronic cigarette products are merely "changing the soup without changing the medicine."

It is also rare for brands to hire spokespersons for electronic cigarette products, shoot advertisements, and so on. Since the beginning of this year, Luo Yonghao has frequently posted "golden quotes" on Weibo, and even though he has faded from the internet industry, his popularity has not diminished. Some of his statements have drawn considerable criticism from netizens, whether they are genuinely straightforward or merely seeking attention, Luo's continuous voice has kept him at the center of public opinion.
 

Inviting the often-controversial celebrity Edison Chen as a spokesperson also proves that Luo Yonghao's bold marketing strategy has once again played a role, aligning well with the product's tone of "vvild."

A line from the promotional video states: "Because until now, I am still me, still myself. Some say I am wild, but actually not really, maybe just a little bit. Don't be too wild, just be a little vvild."
 
Fans' evaluations of the collaboration between Edison Chen and Luo Yonghao

The "policy sword" hanging overhead

After founding vvild, Luo Yonghao stated, "Electronic cigarettes are just a substitute for traditional cigarettes, but they cannot be used to quit smoking addiction, and they also have nicotine addiction. If you are not a smoker, do not smoke."

Currently, electronic cigarette categories are divided into three types: the first is large vapor e-cigarettes. The second is electronic cigarette heaters (new type of electronic cigarettes that heat tobacco without burning). The last type is mouthpiece filters.

It seems that Luo Yonghao's "vvild" belongs to the first type of pod-based vapor e-cigarettes. Currently in China, there are no strict standards for the production of e-liquid in pods, and according to the investigation by the 315 Gala, some e-liquids have non-compliant nicotine content, with some exceeding the standard. E-liquids contain formaldehyde, propylene glycol, and glycerin.

Moreover, the online and offline sales of electronic cigarettes currently do not have corresponding policies, existing in a regulatory vacuum. The current electronic cigarette market is a hotbed for quick profits, with a large influx of capital. Once policies are issued, whether it is licensing or increased taxes, it will bring significant changes to the market, and most manufacturers should be prepared for a quick exit.

Whether Luo Yonghao's electronic cigarette business can become his "comeback" before retreating is still hard to say.

Previously, Luo Yonghao revealed that his motivation for entering the electronic cigarette industry, besides being optimistic about the sector, was also to achieve profitability to pay off debts owed to suppliers of Smartisan Technology.
 
Data shows that the profit margins in the tobacco industry are high.