Authense Consulting USA: Analysis of China's E-cigarette Industry
There are thousands of e-cigarette brands around the world, including large companies, small companies, established companies, and new companies. Major tobacco companies actively participate in consumer competition in the e-cigarette market through mergers, acquisitions, and opening new brands, with a view to finding new growth points for future business growth. Small companies and small brands are also constantly exploring new sales channels. nbsp;
As the number of consumers pursuing a healthy lifestyle and the number of consumers who have the courage to try new things continues to increase, the joining of big tobacco companies has increased market awareness. More and more soft promotion of TV and movies has expanded the e-cigarette market, and the products are even more It's a hundred flowers bloom.
little YanA mini (often referred to as a “cig-a-like”Divided into disposable e-cigarettes and rechargeable e-cigarettes
China tobaccoMid-Size E-Cigarettes (eGo)This type of e-cigarette is the most popular and currently the most popular
Great SmokyAPVs or Mods
As a result, China's e-cigarette industry has entered a stage of rapid development in recent years. Currently, there are e-cigarettes sold globally90%Manufacturing companies from China have made China companies a decisive factor in the global e-cigarette industry supply chain. But behind the rapid growth, we have to say that behind the dazzling data, there are still huge risks hidden. At the same time, the future development trend of the entire e-cigarette industry is also worthy of our consideration and attention.
1、 the world's nearly30Billion dollars in e-cigarette sales, there are90%of products come from China, but China manufacturing companies only obtain5-6With an output value of US$100 million, the reason is that manufacturing in China is still only the output of low-value labor-intensive industries.
2、 #p#Pagination Title #e#The rapidly growing e-cigarette manufacturing market has further attracted a large number of electronic processing companies to transform and join. In the future,OEMandODMCompetition will further intensify, and the era of three struggles for price, quality and brand is coming soon.
3、 For brand owners, China's current production companies are only processing partners. The world's largest brand owners pay more attention to how to layout supply chains in different regions around the world. Therefore, if there are more competitive processing sites in Mexico, Brazil or other places tomorrow, then manufacturing in China will be in jeopardy.
4、 China's manufacturing companies started early and have the advantage of harmony with people. However, in the future, automated production will surely become the mainstream in the e-cigarette manufacturing and processing industry. China's rising labor costs will also bring uncertain impact on manufacturing in China. Will they repeat the mistakes of other manufacturing and processing industries in China?
5、 OEMandODMManufacturers have launched their own brands one after another. However, due to the lack of effective channels to understand and grasp consumers 'first-hand data and information, during the brand building process, they lack effective grasp of channel design, product design and consumer experience design.
6、 is not onlyOEMandODMManufacturers, in fact, for big brands, due to the rapid growth of the e-cigarette industry, there is no good and timely data source. Secondly, because the big brands are all big tobacco companies, many companies still use traditional tobacco methods to conduct marketing strategies. Layout and various legal regulations have brought many market opportunities to some emerging companies that are not from big tobacco companies that focus on technology and adopt sales models that adapt to the times as channels.
Today, when China's e-cigarette industry has entered rapid development, whether from the perspective of long-term stability or survival first, we need to further consider the following issues:#p#Pagination Title #e#
1、 Where will the definition and positioning of e-cigarettes go in the future?
a) Quit smoking or substitute products?
As a smoking cessation or smoking replacement product, although there are currently more than190A correspondingly well-known brand, but on the one hand, a considerable number of them are hookah brands. At present, the main body of the tobacco market is tobacco rod cigarettes, while tobacco rod (rechargeable/The e-cigarette market is still in the early stages of development, and the brand maturity is not enough, althoughBLU，NJoy，VUSEOther brands have taken the lead, but in the future, consumer demand for tobacco rod-type e-cigarettes may be further amplified, and new plans will also be brought to new brands.
b) Personal electronics?
The channels for traditional tobacco products are not only in the United States and Europe, but also in specific channels.CVSThis kind of retail terminal can only be sold at specific counters due to category restrictions. However, as permitted by the laws of the corresponding countries, can personal electronic products be more effective?Best BuyWait for electronic retail channels? E-commerce channels also have unique advantages for electronic products and new brands.
c) Personal health terminal?
With the emergence of wearable products, the popularity of mobile Internet, smart mobile phones/#p#Pagination Title #e#With the deepening of terminals, will new technologies be further adapted to e-cigarette products? E-cigarette products are no longer just a smoking cessation or cigarette replacement product for consumers. They can interact and share more with other smart devices and social circles.
2、 New technologies for e-cigarettes: With the maturity and popularization of Bluetooth technology, mobile Internet, fingerprint, mobile positioning and other technologies, e-cigarettes, as an emerging product in the future, are bound to further integrate these new technologies, which will undoubtedly bring more new products. Users, give new brands a broad market space.
AuthenseIt is believed that China's e-cigarette manufacturing and processing enterprises and the overall industry need to take a longer-term perspective.
Like the mobile phone industry, although companies such as Samsung, Apple and even Huawei are rapidly emerging and dominate the market, the smartphone market is still in the ascendant. However, brands and companies in the digital mobile phone era such as Nokia and Motorola have declined or even disappeared.
This undoubtedly sends a dangerous signal to all our companies. Industries or industries can evolve and develop in the long run, but if companies cannot accept new technologies, new thinking and new trends, then the survival of companies will only be instantaneous.
AuthenseSuggestion:
1、 Layout new brands:
a) How to win and attract new users with new brands#p#Pagination Title #e#
b) Use new technologies more in new brands
c) How can new brands become industry standards leaders in safety, taste, satisfaction, health, and appearance
2、 Leverage new channels
a) Break the monopoly of traditional channels and use new channels to win new users
b) Use new channels to reduce brand operating costs, improve user experience, and win cost advantages for new brand development
c) How to make the most of social media and how to make users become communicators of social media rather than companies and brands themselves
d) How to truly combine online and offline to give users a sense of security, group, uniqueness, trust and pride
#p#Pagination Title #e#3、 Thinking about new technologies
a) Further study and think about the future positioning and definition of e-cigarettes, and grasp consumer dynamics and needs through consumer research
b) Further adapt to trends, think about exploring the application of new technologies in e-cigarettes, and grasp the future market
c) Continuous breakthroughs in new material applications, battery technology, chip technology, smoke liquid composition technology, and atomization technology
d) Continuous breakthroughs in new production efficiency and cost management technologies
4、 Apply for a new patent
a) We must have a global perspective and long-term plan in intellectual property and patent production, and rationally arrange the company structure and intellectual property supporting facilities.
b) Know how to quickly apply for patents to protect your interests#p#Pagination Title #e#
USAuthenseadvisory
A professional consulting organization focusing on the e-cigarette industry and big data applications
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Ge WeiyingGe Weiying
Tel:86.138.0183.3927
Email:johnyge@authense.com
