Can Wang Xing Resist a Trillion-Yuan Market? Meituan Adds Vaping Business

According to data from Tianyancha, Meituan's operating entity, Beijing Sankuai Technology Co., Ltd., has added a retail tobacco (including e-cigarettes) business.
  Data shows that currently, the penetration rate of e-cigarettes in China is less than 1%. According to the "Market Demand Forecast and Investment Strategy Planning Analysis Report" released by the Qianzhan Industry Research Institute, the total production of cigarettes nationwide from January to December 2018 was 23,356.2 billion sticks.

As for the scale of the tobacco industry in China, the official data provides a glimpse. In 2018, the tobacco industry achieved a total tax revenue of 1,155.6 billion yuan, a year-on-year increase of 3.69%; the total amount paid to the national treasury was 1,000.08 billion yuan, a year-on-year increase of 3.37%; the industrial added value reached 787.7 billion yuan, a year-on-year increase of 4.88%; and the total income of tobacco farmers from growing tobacco reached 55 billion yuan, with an average income of 54,000 yuan per household, helping 41,000 poor tobacco farmers escape poverty.

Even if the penetration rate of e-cigarettes reaches only 10%, this is still a market worth hundreds of billions. Wang Xing's entry at this time may be laying a strategic move for potential future actions.