Why Don’t Chinese People Use E-Cigarettes?

Although e-cigarettes were invented by the Chinese, they have not captured a significant market share in China. With 350 million smokers in China, the penetration rate of e-cigarettes is only 1%. In contrast, the e-cigarette market abroad is growing rapidly and is generally regarded as a revolutionary product with unlimited potential. You can easily see people using e-cigarettes on the streets of Europe and America, and they are sold in convenience stores like gum. Why is it that e-cigarettes, which are popular abroad, have yet to become mainstream in China?

Today, I have compiled a few reasons to help clarify the doubts everyone may have.

E-cigarettes are just a temporary substitute for cigarettes
 

Although e-cigarettes are more popular in European countries, they are still just a temporary substitute for traditional cigarettes, used in emergencies when there are no cigarettes or lighters. In reality, very few people only smoke e-cigarettes. Many long-time smokers report that the tobacco flavor of e-cigarettes is not as strong as that of real cigarettes, and they feel that the kick is insufficient. This is related to the different compositions of e-cigarette e-liquids compared to traditional tobacco. We all know that e-cigarette e-liquids have simple compositions, containing only nicotine, glycerin, amino acids, and plant flavors, making them somewhat healthier. Traditional cigarettes, on the other hand, are different.

Traditional cigarettes are divided into flue-cured and blended types.

Flue-cured cigarettes originated in the UK and are also known as English-style cigarettes. Their formula is characterized by the use of flue-cured tobacco, with the tobacco strands being orange-yellow and the smoke having a typical flue-cured aroma. The original "Camel," "Lucky Strike," and "Marlboro" were all flue-cured types, and tobacco companies have tirelessly promoted that "our tobacco leaves are flue-cured."
 

Blended cigarettes originated in the U.S. and are also known as American-style cigarettes. "Camel" was the first American blended cigarette brand. Blended cigarettes are made from a mixture of flue-cured, sun-cured, and air-cured tobaccos, characterized by a rich aroma and smooth taste, with the tobacco strands being brownish-red. At the same time, the tar content is also lower than that of flue-cured cigarettes.

Chinese consumers find the flavor of blended cigarettes too artificial and prefer the natural taste of flue-cured cigarettes. Therefore, China initially started with flue-cured cigarettes and gradually shifted to blended types, making it easier for those accustomed to flue-cured cigarettes to accept.

Thus, traditional cigarettes contain not only nicotine but also tar, which is actually a factor in addiction, while e-cigarette liquids are replaced by various fruit flavors. Therefore, the lack of tar may be an important reason for the low conversion rate of long-time smokers to e-cigarettes.

Traditional tobacco involves mixing different grades of tobacco leaves in specific proportions to create cigarettes with certain flavors or sensory characteristics. Finding a universally liked ratio is quite challenging, and this process typically takes about two years. Therefore, it is understandable that newly emerging e-cigarettes have not yet been accepted by long-time smokers.

The safety of e-cigarettes is in doubt

The mechanical safety and ingredient safety of e-cigarettes have been confirmed, as the FDA in the U.S. requires testing of e-cigarette products before they can be marketed. However, 80% of the world's e-cigarettes are manufactured in China, with 90% processed in Shenzhen. Up to now, there is little confirmatory information in China, and there are still many doubts. The safety of devices, e-liquids, batteries, and the inhaled and exhaled gases have no relevant standards, and there are no regulatory measures to ensure safety when problems arise. Therefore, smokers are hesitant to try e-cigarettes out of concerns for safety and health.

The e-cigarette market lacks regulation

The government has yet to establish clear legislative management for the e-cigarette industry, and the market lacks regulation and testing by relevant departments. Consumers are more worried than ever, so even though various advertisements are extravagant, they are of no use. Today's consumers only believe in policies, not advertisements. Although national standards for e-cigarettes have entered the approval stage, until formal policies are issued, everyone remains in a wait-and-see attitude. No one dares to be the first to take the plunge.

E-cigarette promotion efforts are insufficient

In the past few years, when e-cigarettes first emerged in China, there were almost no advertisements; it was all word of mouth within the VAPOR community. Outsiders only learned about e-cigarettes if they had contact with this community or knew someone in it. Recently, media reports of players experiencing e-cigarette explosions due to improper operation have further heightened people's fears, making them reluctant to approach e-cigarettes.

E-cigarette prices are relatively high

For an average smoker who smokes a pack of cigarettes every three days, their monthly expenditure is around a hundred RMB. In contrast, e-cigarette products range from 100 to 500 RMB, plus the cost of e-liquids, which may not be very suitable for some smokers. For users who enjoy large vapor production, the consumption of atomizing cores will further increase costs. For ordinary office workers with lower incomes, spending several hundred RMB a month can be hard to accept.

E-cigarettes are not conducive to socializing
 

In China, the largest consumption of tobacco and alcohol is not for personal use but as social products. Gifting and sharing cigarettes often occur not because of personal need but as a social medium, with cigarettes being the most common choice. Furthermore, traditional cigarettes have a sharing function, while e-cigarettes fall short in this regard. Even though some brands have produced portable and shareable e-cigarettes, their prices are significantly higher than traditional cigarettes, which is another factor hindering the popularity of e-cigarettes.

Unyielding tobacco tax revenue
 


Chinese tobacco companies are judged on their performance based on the amount of taxes they pay to the state each year, and tobacco tax revenue has always dominated the overall tax revenue in China. The emergence of e-cigarettes, which are similar to traditional cigarettes, will inevitably impact traditional tobacco. A new thing that has just emerged cannot be compared to an old thing that has been prevalent in China for hundreds of years. Moreover, with such a large market, its manufacturers and operators will do everything possible to maintain their market share. Under such an unequal resource situation, e-cigarettes will naturally face significant challenges.

The Chinese e-cigarette market lacks education

For a long time, the Chinese public's understanding of e-cigarettes has remained at the stage of a smoking cessation product. Coupled with the influence of the past "like smoke" perception, the public's impression of e-cigarettes has not been good. Additionally, this year's 3.15 Gala coverage of e-cigarettes has caused public concern, making it difficult for people to distinguish between e-cigarettes and traditional tobacco, and they do not understand the working principles and actual uses of e-cigarettes. Therefore, the education issue in the Chinese e-cigarette market has always been a direction that major e-cigarette brands strive to address.

Nowadays, while Chinese e-cigarette brands educate the public about e-cigarettes, they are also trying various methods to expand the Chinese market. For example, many e-cigarette brands have established their own communities to educate users about e-cigarette knowledge, convey brand concepts, and enhance customer loyalty. Some e-cigarette brands implement a lifetime free replacement policy for devices purchased, meaning that regardless of any issues with the purchased device, the brand will unconditionally replace it with the latest model; even if there are no issues, users can exchange for a new one at any time. Some brands have implemented a used pod exchange program, allowing users to purchase new pods at a discount using their used ones. Other e-cigarette brands are utilizing the currently popular blockchain model to attract users to mine and retain customers. Additionally, some companies frequently organize offline salon events to communicate face-to-face with users, understand customer needs, and achieve continuous product updates to meet more user demands.

Learning from iQOS's successful customer acquisition methods
 

Looking globally, there are some methods worth learning from the globally popular IQOS. Firstly, IQOS is priced quite affordably, comparable to the price of traditional cigarettes in the Japanese domestic market, and offers four flavors of pods: Regular, Balanced Regular, Menthol, and Mint. Secondly, it fully leverages Marlboro's unparalleled consumer base and brand influence worldwide; even though it is a product entirely different from traditional cigarettes, it still uses the "Marlboro" brand name, saving on brand marketing steps. Thirdly, in addition to utilizing existing sales channels from Morphi International, it also employs grassroots marketing platforms and e-commerce platforms. Most importantly, they have established high-end IQOS flagship stores—IQOS Embassies—offline.

Since 2014, Morphi International has opened ten flagship stores in Japan and Italy and two in Russia. Consumers can taste HeatSticks in-store and receive detailed consultations about IQOS, enjoying high-quality after-sales service. For instance, in Europe, new customers can enjoy a free trial service; as long as they have never used IQOS before, they can experience a device worth 99 euros (approximately 776 RMB) for free for two weeks, along with two free pods. During the customer experience, a dedicated experience mentor provides full service, answering questions at any time. However, the customer acquisition cost is around 260 euros (approximately 2038 RMB), indicating that Morphi International has invested heavily in acquiring customers for IQOS.

Historically, new things are always rejected by old things, which is inevitable. Likewise, old things will inevitably be replaced by new things. Perhaps some people dislike e-cigarettes simply because they happen to dislike the particular flavor they are trying at the time.

Smoking has never been a necessity for us; perhaps what you need to overcome is not the craving for cigarettes, but your own mental cravings. To be healthy, you must quit smoking altogether; otherwise, you cannot replace your health with anything, nor can you rely on any substitutes to quit smoking. Correctly viewing the craving for cigarettes and e-cigarettes may be the necessary path to making the right choice.