Are E-Cigarettes the Savior of a Problem Industry or Just a Transitional Product?

"We have data to prove that e-cigarettes are a good choice for customers and a great opportunity for businesses. E-cigarettes can be improved in many ways to become a product that everyone loves."

Simultaneous translation was provided by a young individual who is linguistically versatile and keeps up with the times, vividly translating the speech of Farrell Delman, president of the Tobacco Merchants Association (TMA).

Yesterday, at the China E-Cigarette Summit held in Bao'an District, Shenzhen, industry professionals from China and abroad gathered to listen to a group of foreigners eloquently discussing the industry. One might feel that the most articulate individuals are concentrated in the tobacco industry, which inherently lacks moral integrity yet seeks a path to survival.

Tobacco companies meet customer demands, but due to the harmful nature of tobacco, this supply is not ethical. For many years, to improve public perception, tobacco companies have generously donated to charitable causes, even funding smoking cessation campaigns.

However, the tobacco industry has lost public support, with countries striving to reduce tobacco sales and the number of smokers. Even retailers are taking action; for instance, CVS Caremark in the U.S. recently announced it will stop selling cigarettes by October 1 this year, potentially reducing annual sales by $2 billion.

The eloquence of tobacco industry representatives stems from their understanding of all the data regarding tobacco's adverse health effects, as well as how government and public opinion are against them, yet they always manage to find their value.

The survival strategy of the Tobacco Merchants Association is to sell various industry publications and research reports to both members and non-members. In his speech, president Farrell Delman emphasized the need to reduce the number of smokers and the harm caused by tobacco, and to contribute to this effort.

His suggestion is to expand the popularity of e-cigarettes. He believes that 60% of smokers want to quit but lack methods and professional guidance, and e-cigarettes serve as a good transitional product. He argues that "the harm caused by e-cigarettes is not clear, but it is certainly much less than that of cigarettes," suggesting that when comparing two harms, one should choose the lesser.

Ron Tully, vice president of the National Tobacco Company, seems to agree with Farrell Delman's viewpoint, believing that the sales prospects for e-cigarettes in the U.S. are bright, with 300,000 terminals, including Walmart, potentially serving as sales points.

He referred to Shenzhen as a "very good, amazing e-cigarette production base." This is indeed true; in 2013, smokers consumed $3 billion worth of e-cigarettes, with 90% of that coming from Shenzhen, particularly concentrated in the Shajing sub-district of Bao'an District.

This industry also provides many opportunities. Lu Mei from Shaanxi #p#分页标题#e#Yunzhi Biotechnology Co., Ltd. came to the forum seeking opportunities to promote nicotine, while a lady from Eastman Chemical wanted clients to use her chemical materials to produce tobacco sticks. Liu Tuanfang, chairman of Shenzhen Yijiate Technology Co., Ltd., is evidently very interested in research and development and feels a sense of accomplishment, expressing deep feelings for e-cigarettes.

Most of the first three rows at the forum were occupied by foreigners, which is an interesting phenomenon, clearly indicating that Shenzhen is merely a production base, with brands, formulas, and markets still in the hands of Westerners.

This is not surprising; it is just a microcosm of the struggles faced by the tobacco industry in developed countries. The U.S. is the largest cigarette market globally, but sales are declining at a rate of 3% per year. Europe is also striving to keep smoking rates below 12% by 2020, prompting Western businesses to actively seek tobacco alternatives. From the speakers, it is evident that Western businesses have greater hopes for e-cigarettes and a more proactive attitude towards them.

The tobacco industry has a poor reputation, and those working in it are also viewed unfavorably. However, China is an exception; Chinese people admire those working in the tobacco industry because it implies shorter working hours and higher pay. Thus, while China invented e-cigarettes, it found a market in the West, simply because tobacco prices in China are too low. Currently, there are 350 million smokers in China, with 1.2 million dying from tobacco each year, the highest in the world.

Despite industry insiders being optimistic about e-cigarettes, it is unfortunate that health and medical professionals view e-cigarettes with suspicion. After all, the vaporization of e-cigarettes relies on nicotine, flavorings, and other chemical materials, which can also be harmful to health. Industry insiders hope that e-cigarettes will become a substitute for tobacco or, at the very least, a transitional product, but some health organizations wish to eliminate e-cigarettes along with tobacco.

On the 26th, the World Health Organization released a report in Geneva stating that e-cigarettes also produce toxic substances that harm health. Governments should take measures to prohibit the sale of e-cigarettes to minors and classify electronic cigarettes as tobacco products and medical supplies.

If government policies align with the WHO's recommendations, e-cigarettes will face high taxes, losing their price advantage, which will inevitably hinder sales and limit distribution channels.

It is still difficult to say whether e-cigarettes are a promising star industry or a fading transitional product; this likely depends on how many people continue to vape in the future. Sometimes, the rapid development of an industry makes it hard for insiders to make accurate judgments. For example, e-readers were once all the rage but have now faded into obscurity.

However, the leaders of e-cigarette manufacturing companies in Shenzhen are mostly practical individuals who have navigated the market, likely not thinking too far ahead.