Brand Building in the 2018 Vaping Industry

 From the perspective of industry guidance and regulation, the Electronic Cigarette Industry Committee of the China Electronic Commerce Association has been operating for a year and three months. Looking back at the development of the electronic cigarette industry from the forefront, it has evolved from a local industry to an internationally renowned one, becoming a new industry with significant export influence for China. No one expected that Chinese electronic cigarettes would have such a crucial impact internationally. Each practitioner is connected by countless threads, forming an inseparable manufacturing network, united around the platform of the Electronic Cigarette Committee, rapidly pushing the electronic cigarette market to a new level in 2017. In my view, the brand effect during the growth, stabilization, scaling, and cultivation of this new industry will be a key factor in the development process, driving the improvement of industry quality. The year 2018 will be a brand new year for electronic cigarette brands.

By the end of March 2018, the Electronic Cigarette Committee of the China Electronic Commerce Association received consistent applications from multiple member companies, collectively hoping that the committee could issue an industry-recognized certificate for them. According to the requirements of the "Regulations on the Recognition and Management of Famous Trademarks in Guangdong Province," companies applying for famous trademarks need a recommendation letter from relevant industry associations at or above the provincial level to prove their credibility and sales volume in the industry. The Electronic Cigarette Committee, being part of a national electronic cigarette industry organization, undoubtedly holds more persuasive power. The demands of member companies indicate a shift from a previous need for standardization to a recognition of branding, with companies increasingly aware of their own brand identity. The emergence of numerous enterprises meeting the requirements for famous trademarks reflects a deeper recognition of electronic cigarettes, and differentiated brand recognition encourages more companies to enhance product quality and grow into higher domains, forming a healthy competitive landscape.

I believe that continuously promoting more companies to obtain famous trademark recognition will provide the industry with comprehensive advantages. The more famous trademark companies there are in the industry, the more effective the brand-building efforts will be. This is the Electronic Cigarette Committee's most significant task this year and directly reflects the value of member services. It is also the most direct assessment of the work of the Electronic Cigarette Committee's secretariat. Although I also hold a management position in an electronic cigarette company, which may create a competitive relationship with the relevant companies applying for recommendations, from the industry's perspective, every practitioner should set aside personal biases and assist in promoting relevant companies to achieve better results, especially in any work beneficial to the branding of the industry.

2017 was a significant year in the development history of China's electronic cigarette market. In the past year, the sales of the Chinese electronic cigarette market exceeded 25 billion yuan, becoming a major star category in personal electronic consumption. As an emerging industry, behind the vast market and rapid development momentum is the changing competitive order of the Chinese electronic cigarette market and the absence of market regulations. As a major manufacturer of electronic cigarettes, China is also facing the need to shift from traditional overseas markets to focusing on the burgeoning domestic market. As the European and American markets gradually mature, like other industries, China's domestic market will be the next growth explosion point for the global electronic cigarette industry. Since 2014, the domestic market has shown explosive growth, with sales increasing by 263% compared to the same period in 2013, and users increasing by 259%. Whether domestic or foreign electronic cigarette manufacturers, they must face the task of branding and leveraging their advantages while integrating with the rapid expansion and upgrading of the domestic market. How to break through the chaos is also a test of the brand's own strength. Therefore, building electronic cigarette brands is almost the number one goal for all manufacturers moving forward.

Thus, brands, as a comprehensive reflection of the competitiveness of enterprises, industries, regions, and even countries, have become an important experience and basic consensus in economic development both domestically and internationally. In recent years, China has placed great emphasis on brand building, introducing a series of important policies. For example, starting in 2017, the State Council decided to designate May 10th as "China Brand Day." Numerous initiatives mark the formal elevation of brand building to an important national strategy in the new era. In response, various regions have also introduced implementation opinions to strengthen brand work. The era of branding in the electronic cigarette industry has arrived amidst the rapid development of the market.

Regarding the challenges of building electronic cigarette brands, the reasons are related to the ecological development of the electronic cigarette industry in China and its initial growth path. As a major manufacturing country, China has long held the top position in electronic cigarette manufacturing exports. However, similar to the challenges faced by Chinese manufacturing, it has maintained a mid-to-low-end position in the global industrial chain for many years. Despite undertaking the physical manufacturing of many global electronic cigarette brands, it has long lacked independent brands, innovative technologies, and market awareness. Although it has its manufacturing advantages, the dividends are gradually diminishing. Foreign companies have gradually reversed their disadvantages in terms of independent brands and sustainable operations. If brand building is not strengthened, the Chinese electronic cigarette industry will face another reshuffle.

The Electronic Cigarette Committee of the China Electronic Commerce Association has fully promoted the standardization of the industry in 2017, issuing two standards: "General Specifications for Electronic Cigarette Atomization Devices" and "Specifications for Electronic Cigarette Liquids." At the same time, the number of member companies has reached over 200, with member production value accounting for 70% of the global total. The committee has made significant efforts in customs declaration categories, import and export tax rates, and more. As domestic electronic cigarette companies strive for famous trademarks in 2018, leading member companies to strengthen their brand image will be a key focus of the committee's work this year. In the future, we will see more high-quality Chinese brands competing in the international market, and the birth of a century-old Chinese electronic cigarette brand is not out of the question.