Disposable Vape Xiao Latiao Enters the Smart Hardware Market

According to a data report from the China Business Industry Research Institute, the global e-cigarette market was approximately $416 million in 2010, expanding to $7.1 billion by 2016, a 17-fold increase in market capacity over six years, with a compound annual growth rate of 60.5%. By 2018, the global e-cigarette market is expected to exceed $10 billion. Whether globally or domestically in China, the e-cigarette market is still in a rapid development phase, and there remains significant commercial value in the future.

In the 2018 Sixth Smart Hardware Innovation and Entrepreneurship Competition, the Xiao Latiao e-cigarette won the Most Promising Award after several rounds of selection, a well-deserved recognition. After the competition, the product director of Xiao Latiao e-cigarette was interviewed.

He stated that in April 2018, the team noticed this type of product while attending some foreign exhibitions, and quickly launched the Xiao Latiao project in July, officially entering the e-cigarette field.
Regarding the reasons, Huoqi stated that many people in China are suffering to varying degrees from the harms of traditional cigarettes, with some even developing lung cancer at a young age. In fact, since 1985, lung cancer has become the most prevalent and deadly malignant tumor globally. According to the World Health Organization, there are 1.8 million new lung cancer patients globally each year, with 1.6 million deaths. Among these, 85% of lung cancer cases are related to smoking traditional cigarettes, and smokers are 13 times more likely to develop lung cancer compared to non-smokers.

Based on this, the Xiao Latiao team conducted in-depth research and exploration of new tobacco products. They quickly discovered that e-cigarette products popular in developed countries like the U.S., Japan, and Europe can actually serve as a healthier alternative to traditional cigarettes. In China, although there is a substantial base of 350 million smokers, the penetration rate of e-cigarettes is very low, and the product experience is not satisfactory. However, with the development of the social economy and smokers' increasing attention to health and quality, the rise of the e-cigarette market in China is an unstoppable trend.

Therefore, the Xiao Latiao team believes that creating a better e-cigarette for users not only has significant social implications but also contains enormous business opportunities. They hope to present e-cigarettes to consumers in a healthier and higher-quality product form through the Xiao Latiao brand.

Huoqi told Donews that the e-cigarette industry is not a new phenomenon in China, but in the past year, a new wave of e-cigarette consumption forces has emerged, causing rapid growth in the domestic market. This includes Xiao Latiao and other competitors, all welcoming this market with new approaches.

The new e-cigarettes differ from traditional e-cigarettes in terms of industrial design, manufacturing, health, smoking sensation, and internet marketing attributes.

However, Xiao Latiao's goal is not limited to the domestic market; currently, the mainstream e-cigarette markets are concentrated in developed countries like the U.S., Japan, and Europe. Huoqi stated that this is a market we will inevitably explore in the future. In fact, from the beginning, Xiao Latiao aimed to develop towards becoming a global mainstream brand, dedicated to providing better alternative products for the 1 billion smokers worldwide.

Previously, the general manager of Xiao Latiao e-cigarette revealed that the company has drafted a three-year business plan: in 2018, it is expected to launch 10 main smart e-cigarette hardware products, with sales exceeding 500,000 yuan; in 2019, the expected number of APP users will exceed 1 million, with hardware sales revenue exceeding 10 million yuan and internet information service fees exceeding 500,000 yuan; by 2020, APP users will exceed 10 million, hardware sales revenue will exceed 100 million yuan, and internet information service fees will exceed 10 million yuan.
As of now in 2018, Xiao Latiao has released the "0 nicotine, 0 tar" Rainbow series vitamin energy sticks, available in four different fruit flavors, as well as the P1 series products with replaceable tobacco sticks, also available in four flavors. Huoqi revealed that the high-end flagship Magic series of Xiao Latiao will be launched for pre-sale through crowdfunding platforms in late December, and the product and sales revenue can basically maintain the path outlined in Xiao Latiao's previous plans.

In terms of products, innovation is the soul of survival and development on the entrepreneurial path, ensuring that a company thrives in the right direction. In addition to more novel and colorful appearances, Xiao Latiao e-cigarettes are also trying to add more functional elements, such as caffeine, aphrodisiacs, beauty, and weight loss, to expand the user base. Additionally, users can experience monitoring, remote control, social, and e-commerce functions through the Xiao Latiao App, greatly enhancing the playability and experience of the product.
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Xiao Latiao references the operational logic of Xiaomi's Mi Band, providing its own product logic and establishing a development path from smart hardware to community platform.

In contrast, Xiao Latiao plans to divide its revenue into three main parts: first, sales of e-cigarette products to obtain funding for product development and internet platform research and development costs, while gathering initial user groups; second, platform commissions and other product sales, through the construction of the Xiao Latiao App platform for operations, obtaining commission income from goods or other product sales; third, advertising and value-added services, generating income from advertising and value-added services through information, short videos, etc., based on the platform.

Huoqi expressed gratitude to the organizers, stating that this stage also served as the first external release of Xiao Latiao products. Through the platform of the smart hardware competition, Xiao Latiao has connected with many investors. "The smart hardware competition is an exceptionally well-organized entrepreneurial competition by a group of outstanding individuals, providing an excellent stage for showcasing and allowing us to learn from and progress together with many excellent people, which is our greatest gain," Huoqi said.