Is Luo Yonghao’s FLOW Fulu Vaping Device a New Opportunity or a Challenge?
Luo Yonghao’s FLOW Fulu vaping device has caused a stir in both investment circles and fan communities over the past few days. Old Luo really seems to be selling vaping devices now, but whether his fans will buy the Fulu product remains to be seen. The to
Luo Yonghao's FLOW Fulu vaping device has recently stirred up excitement among investment circles and fans alike. Is Old Luo really going to sell electronic cigarettes? Will fans buy this Fulu vaping device? The tobacco bureau is unlikely to intervene in Old Luo's sale of Fulu vaping devices, as electronic cigarettes do not fall under the tobacco category in China. Moreover, the subsidiary of China Tobacco Group is set to go public in Hong Kong, indicating that the group is keen on developing the new tobacco market. It is believed that more giants will enter the electronic cigarette industry in the next 1-2 years.
Looking back at the history of electronic cigarettes, this seemingly trendy product category, dominated by overseas brands, is fundamentally a "Chinese invention." The most recognized origin of electronic cigarettes dates back to 2003 with the homegrown "Ruyan."
However, electronic cigarettes truly gained popularity starting in 2015 with Juul—the company that awarded an average of $1.3 million in year-end bonuses to each employee last year, primarily from a $12.8 billion investment agreement with Marlboro cigarette manufacturer Altria Group.
The development speed and scale of electronic cigarettes in China are far behind that of foreign markets. The sudden explosion in 2015 saw a tobacco product aimed at helping smokers quit, meeting the health needs of smokers while satisfying their cravings. Small electronic cigarettes rapidly grew in popularity in China!
The term "small cigarette" in the electronic cigarette community refers to a series of innovations in e-liquids and heating solutions. These innovations transformed electronic cigarettes from a bulky, inefficient, and unsatisfactory "grandfather-style product" into a lightweight, fashionable, and nicotine-rich "youthful product."
Regarding Old Luo's entry into the electronic cigarette field, fans of Smartisan have long been aware but are still somewhat confused. There are differing opinions in the industry. The general view is that Luo Yonghao's venture into electronic cigarettes is either a search for new opportunities or a lifeline for Smartisan.
Perhaps only Old Luo knows the answer. Setting aside this speculation, what are Old Luo's plans for electronic cigarettes? The current electronic cigarette market is extremely hot, and entering it is understandable. However, the current situation for Luo Yonghao and Smartisan Technology is different from the past. People are concerned about whether the electronic cigarette project will be the key to Old Luo's "success or failure."
With the launch of Chat Treasure, Old Luo wanted to communicate with the world. With the release of electronic cigarettes, we also want to ask Old Luo about his understanding and perspective. Of course, all answers are derived from analysis, and Old Luo may not see them. If he could see them and provide his answers, that would be wonderful.
Why is Luo Yonghao entering the electronic cigarette market?
On January 11, the long-awaited Luo Yonghao appeared at an electronic cigarette launch event, sparking speculation about his entry into the electronic cigarette market. It has been confirmed that Luo Yonghao has indeed invested in electronic cigarettes.
The electronic cigarette market is enormous. According to previous reports by Pintu Business Review (ID: pintu360), the market opportunities for electronic cigarettes are significant.
On December 31, 2018, China National Tobacco Corporation's wholly-owned subsidiary, China Tobacco International (Hong Kong) Limited, submitted a listing application to the Hong Kong Stock Exchange, with CICC and China Merchants Securities as joint sponsors. Data shows that the number of smokers in China accounts for one-third of the global total, leading to a frenzy among entrants in the electronic cigarette industry.
Currently, despite a capital winter, the electronic cigarette sector remains remarkably lively, with several electronic cigarette projects rapidly securing funding in 2018 alone.
In October 2018, Hong Kong announced a complete ban on electronic cigarettes, which directly reduced the penetration of IQOS in the Chinese market, thereby lessening its impact on the traditional tobacco market in China.
However, markets in Europe, America, and Japan have proven that the electronic cigarette market and sector represent an irreversible trend of consumer upgrade. Old Luo's business intuition and insight have allowed him to quickly organize a team and resources to participate. Choosing to fight back in such circumstances is commendable. It is reported that Zhu Xiaomu began preparing the electronic cigarette project in the second half of 2018.
Will the electronic cigarette market and products save Smartisan Technology as Old Luo anticipates? This depends on Old Luo's original intention and determination in product development. However, whether cross-industry or transformation, every step must be taken cautiously for companies in distress, as evidenced by HTC's case.
Of course, Old Luo's entry has elicited mixed reactions. The electronic cigarette association has expressed welcome; electronic cigarette startups have also displayed slogans welcoming Old Luo's participation; while Luo Jia from Electronic Cigarette Online believes that the rapid growth of electronic cigarettes has become an inevitable trend, and Old Luo's product should not face significant issues.
According to Pintu Business Review, there are two types of opinions from capital sources: some express confusion, believing Old Luo has lost his mind; others see it as an investment opportunity. Old Luo's intention to enter a new market is clear: can he recreate Smartisan or help the current Smartisan escape its predicament?
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Will Luo Yonghao succeed in the electronic cigarette market?
At the launch event, Luo Yonghao announced that electronic cigarettes would be included in the "New Year Gift" luxury package of Chat Treasure, which is sure to bring significant traffic to the Fulu electronic cigarette. Given Old Luo's influence, this product is likely to become an industry dark horse, quickly securing a large number of orders.
The Fulu's pod-based vaping device, commonly referred to as a "small cigarette," has gained popularity in the market in recent years. According to the product page, this device does not produce tar and reduces harm by 95% compared to traditional cigarettes. It features a built-in 320mAh rechargeable lithium battery, which can be used for approximately 210 - 330 puffs when fully charged, and has an IP56 waterproof rating, "capable of withstanding strong splashes of water." To address the issue of old smokers struggling to determine "when to finish a cigarette" after switching to small cigarettes, FLOW Fulu has also incorporated a "15 puff vibration reminder" feature, which is standard for electronic product descriptions.
Users of Smartisan phones have praised the quality of the devices, which is why there is such a large community of Smartisan fans. Old Luo's passion and pursuit of product excellence are also recognized in the market. However, products are ultimately for use, and no matter how good the description is, it cannot replace the product experience, which is something Smartisan needs to reflect on.
In terms of user experience, electronic cigarettes prioritize usage experience above all else. The marketing and ceremonial aspects of the past, like those of Diao Ye Niu Nian, were top-notch, but the key lies in the eating experience, which was a major reason for their failure.
Regarding experience, Old Luo has not spoken much. The founder is undoubtedly the biggest product manager. To make electronic cigarettes, one must understand tobacco and smokers. Does Zhu Xiaomu smoke? It remains unknown. Pintu Business Review has learned that to develop the product, the VPO founder spent a year becoming a two-pack-a-day smoker. Of course, this is not an advertisement, nor does it advocate or induce others to smoke; the warning "Smoking is harmful to health" is printed on all tobacco packaging for this reason.
Regarding experience, Pintu Business Review has a few points of view:
Experience 1: Bug Fixes. Oil leakage and oil absorption are common issues in the industry. Without batch testing, it is difficult to resolve quality control problems, and a rushed release may leave users feeling like guinea pigs, leading to a poor experience.
Experience 2: Flavor. Flavor tuning must occur during the first batch production, combining different e-liquids for bilateral matching adjustments.
Experience 3: Taste. Currently, flavor design blindly follows market trends in electronic cigarette flavors. Has Zhu Xiaomu conducted thorough research? Currently, non-tobacco flavors mainly target old users, veteran players, and existing users who have been in contact with electronic cigarettes for some time. New users will primarily experience tobacco-flavored options, but developing tobacco flavors is extremely challenging.
Industry insiders have also analyzed the Fulu electronic cigarette, providing insights for reference:
Do they understand the market and the users? Clearly, Fulu's initial user base will primarily consist of Smartisan fans, and the match between flavors and user needs requires further research. Determining flavors before hardware mass production is crucial, as the compatibility of e-liquids with hardware may pose risks in achieving the desired flavor profile.
In terms of hardware, the Fulu electronic cigarette has a 320mAh battery. Journalists specifically consulted industry insiders, and this capacity may be insufficient for heavy users to last a day. Additionally, the plastic body and pricing at 299 yuan may be considered high.
In short, it still comes down to experience. Flashy features are not the primary choice for users; the "15 puff vibration reminder" is clearly not a core demand for smokers. Differentiation has not solved the core issue; smokers want nothing more than to "enjoy a good smoke."
Is the electronic cigarette market a blue ocean or a red ocean?
According to P&S Market forecasts, the global electronic cigarette market is expected to reach $48 billion by 2023, with an average annual compound growth rate of 25.99%. China has entered a rapid growth phase in electronic cigarette consumption, with projections indicating a compound growth rate of 89% over the next five years, and the market size for electronic cigarettes in China is expected to reach 112 billion yuan.
Old Luo's entry into the electronic cigarette market clearly indicates he sees the blue ocean advantage. Firstly, this industry lacks a leading brand; secondly, the logic of leveraging the Luo Yonghao IP is valid. When Old Luo takes the stage, a simple "Old Luo, we miss you!" shows the affection Smartisan fans have for him, making consumer conversion a natural process.
#p#Page Title#e#
However, the real issues and risks in the electronic cigarette market are challenges Old Luo must face. Firstly, consumer awareness and education present significant hurdles;
Secondly, Old Luo must confront the lack of electronic cigarette channels, with e-commerce channels being small in scale and high in traffic costs. Offline, wholesale remains the primary method, and there are few touchpoints for consumers to experience the product;
Additionally, the industry is fiercely competitive, with giants entering the fray, and capital is supporting their respective electronic cigarette enterprises, such as RELX, Shilan, Huoqi Electronic Cigarettes, and VPO, each with strong backing.
All these factors present a red ocean for Old Luo. It can be predicted that in the near future, the electronic cigarette market will become as fiercely competitive as the current smartphone market, where sentiment alone cannot fully shape competitiveness. It is hoped that the pitfalls of the past will serve as stepping stones for Old Luo's progress in the electronic cigarette field.
Currently, the electronic cigarette industry in China remains a market with significant potential. The key lies in how one operates it. For instance, RELX electronic cigarettes achieved a scale of several billion in just one year, and companies like McWell, which manufactures electronic cigarettes, have made substantial profits. It is believed that Old Luo's craftsmanship spirit will bring a new atmosphere to the electronic cigarette market.
Looking back at the history of electronic cigarettes, this seemingly trendy product category, dominated by overseas brands, is fundamentally a "Chinese invention." The most recognized origin of electronic cigarettes dates back to 2003 with the homegrown "Ruyan."
However, electronic cigarettes truly gained popularity starting in 2015 with Juul—the company that awarded an average of $1.3 million in year-end bonuses to each employee last year, primarily from a $12.8 billion investment agreement with Marlboro cigarette manufacturer Altria Group.
The development speed and scale of electronic cigarettes in China are far behind that of foreign markets. The sudden explosion in 2015 saw a tobacco product aimed at helping smokers quit, meeting the health needs of smokers while satisfying their cravings. Small electronic cigarettes rapidly grew in popularity in China!
The term "small cigarette" in the electronic cigarette community refers to a series of innovations in e-liquids and heating solutions. These innovations transformed electronic cigarettes from a bulky, inefficient, and unsatisfactory "grandfather-style product" into a lightweight, fashionable, and nicotine-rich "youthful product."
Regarding Old Luo's entry into the electronic cigarette field, fans of Smartisan have long been aware but are still somewhat confused. There are differing opinions in the industry. The general view is that Luo Yonghao's venture into electronic cigarettes is either a search for new opportunities or a lifeline for Smartisan.
Perhaps only Old Luo knows the answer. Setting aside this speculation, what are Old Luo's plans for electronic cigarettes? The current electronic cigarette market is extremely hot, and entering it is understandable. However, the current situation for Luo Yonghao and Smartisan Technology is different from the past. People are concerned about whether the electronic cigarette project will be the key to Old Luo's "success or failure."
With the launch of Chat Treasure, Old Luo wanted to communicate with the world. With the release of electronic cigarettes, we also want to ask Old Luo about his understanding and perspective. Of course, all answers are derived from analysis, and Old Luo may not see them. If he could see them and provide his answers, that would be wonderful.
Why is Luo Yonghao entering the electronic cigarette market?
On January 11, the long-awaited Luo Yonghao appeared at an electronic cigarette launch event, sparking speculation about his entry into the electronic cigarette market. It has been confirmed that Luo Yonghao has indeed invested in electronic cigarettes.
The electronic cigarette market is enormous. According to previous reports by Pintu Business Review (ID: pintu360), the market opportunities for electronic cigarettes are significant.
On December 31, 2018, China National Tobacco Corporation's wholly-owned subsidiary, China Tobacco International (Hong Kong) Limited, submitted a listing application to the Hong Kong Stock Exchange, with CICC and China Merchants Securities as joint sponsors. Data shows that the number of smokers in China accounts for one-third of the global total, leading to a frenzy among entrants in the electronic cigarette industry.
Currently, despite a capital winter, the electronic cigarette sector remains remarkably lively, with several electronic cigarette projects rapidly securing funding in 2018 alone.
In October 2018, Hong Kong announced a complete ban on electronic cigarettes, which directly reduced the penetration of IQOS in the Chinese market, thereby lessening its impact on the traditional tobacco market in China.
However, markets in Europe, America, and Japan have proven that the electronic cigarette market and sector represent an irreversible trend of consumer upgrade. Old Luo's business intuition and insight have allowed him to quickly organize a team and resources to participate. Choosing to fight back in such circumstances is commendable. It is reported that Zhu Xiaomu began preparing the electronic cigarette project in the second half of 2018.
Will the electronic cigarette market and products save Smartisan Technology as Old Luo anticipates? This depends on Old Luo's original intention and determination in product development. However, whether cross-industry or transformation, every step must be taken cautiously for companies in distress, as evidenced by HTC's case.
Of course, Old Luo's entry has elicited mixed reactions. The electronic cigarette association has expressed welcome; electronic cigarette startups have also displayed slogans welcoming Old Luo's participation; while Luo Jia from Electronic Cigarette Online believes that the rapid growth of electronic cigarettes has become an inevitable trend, and Old Luo's product should not face significant issues.
According to Pintu Business Review, there are two types of opinions from capital sources: some express confusion, believing Old Luo has lost his mind; others see it as an investment opportunity. Old Luo's intention to enter a new market is clear: can he recreate Smartisan or help the current Smartisan escape its predicament?
#p#Page Title#e#
Will Luo Yonghao succeed in the electronic cigarette market?At the launch event, Luo Yonghao announced that electronic cigarettes would be included in the "New Year Gift" luxury package of Chat Treasure, which is sure to bring significant traffic to the Fulu electronic cigarette. Given Old Luo's influence, this product is likely to become an industry dark horse, quickly securing a large number of orders.
The Fulu's pod-based vaping device, commonly referred to as a "small cigarette," has gained popularity in the market in recent years. According to the product page, this device does not produce tar and reduces harm by 95% compared to traditional cigarettes. It features a built-in 320mAh rechargeable lithium battery, which can be used for approximately 210 - 330 puffs when fully charged, and has an IP56 waterproof rating, "capable of withstanding strong splashes of water." To address the issue of old smokers struggling to determine "when to finish a cigarette" after switching to small cigarettes, FLOW Fulu has also incorporated a "15 puff vibration reminder" feature, which is standard for electronic product descriptions.
Users of Smartisan phones have praised the quality of the devices, which is why there is such a large community of Smartisan fans. Old Luo's passion and pursuit of product excellence are also recognized in the market. However, products are ultimately for use, and no matter how good the description is, it cannot replace the product experience, which is something Smartisan needs to reflect on.
In terms of user experience, electronic cigarettes prioritize usage experience above all else. The marketing and ceremonial aspects of the past, like those of Diao Ye Niu Nian, were top-notch, but the key lies in the eating experience, which was a major reason for their failure.
Regarding experience, Old Luo has not spoken much. The founder is undoubtedly the biggest product manager. To make electronic cigarettes, one must understand tobacco and smokers. Does Zhu Xiaomu smoke? It remains unknown. Pintu Business Review has learned that to develop the product, the VPO founder spent a year becoming a two-pack-a-day smoker. Of course, this is not an advertisement, nor does it advocate or induce others to smoke; the warning "Smoking is harmful to health" is printed on all tobacco packaging for this reason.
Regarding experience, Pintu Business Review has a few points of view:
Experience 1: Bug Fixes. Oil leakage and oil absorption are common issues in the industry. Without batch testing, it is difficult to resolve quality control problems, and a rushed release may leave users feeling like guinea pigs, leading to a poor experience.
Experience 2: Flavor. Flavor tuning must occur during the first batch production, combining different e-liquids for bilateral matching adjustments.
Experience 3: Taste. Currently, flavor design blindly follows market trends in electronic cigarette flavors. Has Zhu Xiaomu conducted thorough research? Currently, non-tobacco flavors mainly target old users, veteran players, and existing users who have been in contact with electronic cigarettes for some time. New users will primarily experience tobacco-flavored options, but developing tobacco flavors is extremely challenging.
Industry insiders have also analyzed the Fulu electronic cigarette, providing insights for reference:Do they understand the market and the users? Clearly, Fulu's initial user base will primarily consist of Smartisan fans, and the match between flavors and user needs requires further research. Determining flavors before hardware mass production is crucial, as the compatibility of e-liquids with hardware may pose risks in achieving the desired flavor profile.
In terms of hardware, the Fulu electronic cigarette has a 320mAh battery. Journalists specifically consulted industry insiders, and this capacity may be insufficient for heavy users to last a day. Additionally, the plastic body and pricing at 299 yuan may be considered high.
In short, it still comes down to experience. Flashy features are not the primary choice for users; the "15 puff vibration reminder" is clearly not a core demand for smokers. Differentiation has not solved the core issue; smokers want nothing more than to "enjoy a good smoke."
Is the electronic cigarette market a blue ocean or a red ocean?
According to P&S Market forecasts, the global electronic cigarette market is expected to reach $48 billion by 2023, with an average annual compound growth rate of 25.99%. China has entered a rapid growth phase in electronic cigarette consumption, with projections indicating a compound growth rate of 89% over the next five years, and the market size for electronic cigarettes in China is expected to reach 112 billion yuan.
Old Luo's entry into the electronic cigarette market clearly indicates he sees the blue ocean advantage. Firstly, this industry lacks a leading brand; secondly, the logic of leveraging the Luo Yonghao IP is valid. When Old Luo takes the stage, a simple "Old Luo, we miss you!" shows the affection Smartisan fans have for him, making consumer conversion a natural process.
#p#Page Title#e#
However, the real issues and risks in the electronic cigarette market are challenges Old Luo must face. Firstly, consumer awareness and education present significant hurdles;Secondly, Old Luo must confront the lack of electronic cigarette channels, with e-commerce channels being small in scale and high in traffic costs. Offline, wholesale remains the primary method, and there are few touchpoints for consumers to experience the product;
Additionally, the industry is fiercely competitive, with giants entering the fray, and capital is supporting their respective electronic cigarette enterprises, such as RELX, Shilan, Huoqi Electronic Cigarettes, and VPO, each with strong backing.
All these factors present a red ocean for Old Luo. It can be predicted that in the near future, the electronic cigarette market will become as fiercely competitive as the current smartphone market, where sentiment alone cannot fully shape competitiveness. It is hoped that the pitfalls of the past will serve as stepping stones for Old Luo's progress in the electronic cigarette field.
Currently, the electronic cigarette industry in China remains a market with significant potential. The key lies in how one operates it. For instance, RELX electronic cigarettes achieved a scale of several billion in just one year, and companies like McWell, which manufactures electronic cigarettes, have made substantial profits. It is believed that Old Luo's craftsmanship spirit will bring a new atmosphere to the electronic cigarette market.
