E-cigarettes named in the 3.15 Gala: Will the vaping industry fall out of favor?
E-cigarettes were singled out in the 3.15 Gala. Will the vaping industry lose its appeal? This bolt from the blue brought to mind a photo leaked online a few days earlier showing Luo Yonghao standing alongside an executive at a vaping company, sparking ru
The 315 Gala named e-cigarettes; will the vaping industry fall out of favor? This shocking news reminds me of a photo that circulated online a few days ago, showing Luo Yonghao alongside an executive at an e-cigarette company, sparking rumors about his departure from Chat Treasure and Smartisan to venture into e-cigarettes.
Previously, Zhu Xiaomu, a core member of Smartisan and product director, left to establish the FLOW e-cigarette brand.
The e-cigarette trend has been gaining momentum over the past year. In addition to Smartisan, the founders of Tongdao Dashi and Huang Taiji jointly launched the YOOZ e-cigarette, while CEOs of media outlets like Visual Journal have collaborated to introduce the LINX e-cigarette. Meanwhile, major investment firms like IDG and Zhenge Fund have begun appearing on the e-cigarette investment list.
Following this, the CCTV 315 Gala aired, naming e-cigarettes and stating that they involve false advertising. Prolonged use of e-cigarettes can also lead to nicotine dependence, and harmful substances like formaldehyde, propylene glycol, and glycerin were detected in the vapor produced.
After the CCTV exposure, platforms like Tmall urgently blocked the search keywords "e-cigarettes," and JD.com removed related products from their shelves. Many industry practitioners were alarmed, fearing that regulatory authorities would intensify oversight and introduce restrictive policies.
Faced with the frenzy of capital and public skepticism, the nascent e-cigarette industry has been thrust into the spotlight. Where did this phenomenon come from, and where is it headed?
The Rise of E-Cigarettes is Rooted in Culture
If you smoke for the first time, the experience is usually not pleasant. Your lungs naturally reject the smoke, and taking a deep drag often leads to severe coughing, a spicy taste in your mouth, and tears in your eyes.
You may gradually adapt and come to enjoy the neurological relaxation that nicotine brings, but this physiological sensation alone is insufficient to sustain the entire cigarette industry.
The popularity of cigarettes is closely tied to their culture. Initially, cigarettes were beloved by Western intellectuals. Writers like Dumas, Maupassant, Balzac, and Hugo enjoyed being surrounded by smoke while writing and often depicted smoking in their works.
Subsequently, the consumer base for cigarettes expanded from the elite to the masses. Cigarettes in films have a more impactful presence than those in books, with various Western cowboys and 007 characters embodying a "macho" image associated with smoking.
The Rise of E-Cigarettes is Also Culturally Driven.
E-cigarettes were first invented in China. In 2003, pharmacist Hon Lik invented the first e-cigarette, which included a heating system that could vaporize liquid nicotine.
By 2006, e-cigarettes began exporting to Europe and America, quickly capturing a massive market. Today, over 90% of e-cigarettes are produced in Shenzhen, with only 6% of products consumed domestically.
The first generation of e-cigarettes focused on health, but this did not garner much attention. Instead, social media platforms like Instagram and Snapchat provided fertile ground for e-cigarettes to spread.
E-cigarettes were initially associated with subcultures. On Instagram, smokers were often young people with tattoos and trendy clothing, who enjoyed using the large vapor clouds from e-cigarettes to perform various tricks. Many e-cigarette videos featured electronic music and appeared in scenes of street dancing, skateboarding, and racing.
With the cultural seed planted, e-cigarettes gradually expanded from the "circle" to the outside world. However, over half of e-cigarette consumers are former non-smokers. Their reasons for choosing e-cigarettes are diverse: they are perceived as healthier than traditional cigarettes, can be used in non-smoking areas, do not affect others, offer more flavors, can help with quitting smoking, have a tech-savvy and aesthetically pleasing design, and produce large vapor clouds that are fun to use.
As more people become aware of the characteristics of e-cigarettes, they have started to gain popularity in the fashion and film industries. The "trial and error" of celebrities has attracted even more attention and purchases.
The rise of e-cigarettes in China is somewhat ironic. Originally a Chinese invention, produced by Chinese manufacturers, it gained international acclaim, was imitated by young people domestically, and became a cultural symbol, gradually becoming a fashionable trend imported from abroad.
Subsequently, various manufacturers began to promote health benefits, attracting many who wanted to quit smoking and those who found e-cigarettes harmless and fun. But is it really that effective?
The Health Issues of E-Cigarettes are as Ambiguous as GMOs
E-cigarettes typically consist of two parts: the atomizer and the e-liquid, which can be simply understood as the relationship between a pen and ink.
The principle of e-cigarettes is to vaporize the e-liquid to create nicotine vapor, mimicking the process of igniting tobacco in traditional cigarettes.
E-cigarettes use a "non-combustion" method of producing vapor, which significantly reduces the most harmful substances, tar and carbon monoxide, while retaining addictive nicotine (which poses risks to fetal development and adolescent brain cognition). Therefore, theoretically, they can reduce the harm of smoking.
However, the chemical composition of e-cigarettes is mixed, and the vapor produced may contain heavy metals, volatile mixtures, and carcinogenic microparticles.
According to test data from Hong Kong Baptist University, the levels of polybrominated diphenyl ethers and formaldehyde produced by e-cigarettes after vaporization are significantly higher than those of traditional cigarettes.
Some Studies Hold Opposing Views.
In 2015, Public Health England (PHE) released a 113-page report stating that e-cigarettes are 95% safer than smoking. Despite facing numerous criticisms, PHE maintained this claim in 2018.
PHE Research
The Centers for Disease Control and Prevention (CDC) in the U.S. assessed e-cigarettes as follows:
As a new product, the long-term health effects of e-cigarettes are still unknown, but they do not recommend experimentation by adolescents and pregnant women.
In summary, the specific harms of e-cigarettes have not been conclusively determined, but they are certainly not related to "health." Especially in an industry without unified standards and with mixed brands, some e-cigarettes may pose risks comparable to traditional cigarettes.
Regarding the Help in Quitting Smoking.
Nicotine is an addictive substance, and withdrawal symptoms can occur when trying to quit smoking, causing dizziness, weakness, and irritability, leading to a relapse.
Nicotine patches, gum, and sprays can provide small amounts of nicotine to alleviate withdrawal symptoms and improve the chances of quitting. The World Health Organization (WHO) and the FDA have recommended corresponding smoking cessation methods.
However, research results regarding e-cigarettes' effectiveness in helping to quit smoking are inconsistent. NextTech reviewed mainstream studies and found some papers claiming they are effective, while others say they are not... According to WHO's statement in 2014, existing research is insufficient to prove that e-cigarettes can help completely quit smoking habits, and traditional nicotine therapies that have been proven effective are prioritized.
E-cigarettes may not necessarily help long-time smokers quit, but non-smokers who try e-cigarettes are likely to become addicted.
Before Policies Arrive, Make Money!
Now, if you go to Shenzhen, you can find a complete e-cigarette industry chain. As long as you have money, you can enjoy a one-stop service from design, production, to sales.
At a recent e-cigarette salon, Wu Li, Deputy Director of Tianfeng Securities Research Institute, stated that with 5 million yuan, one could start an e-cigarette brand, while an entrepreneur nearby added that 3 million might suffice, which is a very low cost for hardware production.
There are no secret technologies in the industry; the costs of e-cigarettes from atomizers to e-liquids are not high. Once you buy an atomizer, you will inevitably continue to purchase e-liquid. This business model is not like smartphones, which have better cyclical control.
According to Wall Street reports, the gross margin of American e-cigarette company Juul is as high as 75%, and data from Dongfang Finance shows that the gross margin of e-cigarettes is nearly double that of the pharmaceutical manufacturing industry at 40%.
However, whether e-cigarettes can thrive in China largely depends on policies.
The trend of policies is also difficult to predict. For example, the UK generally supports the promotion of e-cigarettes, while the U.S. does not ban them but is conservative, especially strict in protecting minors; Hong Kong announced last year that it plans to ban e-cigarette sales entirely, while the mainland has not yet taken a clear stance, not even defining whether e-cigarettes are drugs, food, or tobacco.
The formulation of policies involves existing interests; tobacco tax revenue still ranks first among all industries in China, representing substantial profits. The state prohibits tobacco advertising and controls smoking scenes in films, but compared to Europe and America, it is relatively lenient.
The UK completely prohibits differentiated packaging for cigarettes, using uniform color packaging to reduce appeal to young people, and requires that over 65% of the package area be covered with warning labels and images of diseases caused by smoking (the images are too disgusting to show here??), emphasizing the negative effects of smoking.
Canada and Australia also require tobacco companies to make cigarette packs uniform in color, size, and shape, even prohibiting trademarks to prevent companies from attracting young people through packaging advertising.
The reason why the UK and the US have become the largest markets for e-cigarettes is largely due to strict smoking bans and high tobacco taxes. Since e-cigarettes can operate freely on social networks without being subject to tobacco tax rates, they have thrived.
It is well known that tobacco is one of the industries controlled in China, with vertical management by the state. In the context of the tobacco monopoly, e-cigarettes face challenges in becoming a mass commodity in China.
An industry practitioner told NextTech that the naming of e-cigarettes in the 315 Gala is a signal that a series of measures may be introduced next. He believes that "with 1.2 billion smokers in the country, even if there are 400 million smokers, regardless of whether smokers have demand, the scale of the e-cigarette industry will not be significant."
After the 315 Gala named e-cigarettes, some e-cigarette companies immediately changed their advertising copy, no longer emphasizing health, and began promoting the "cultural connotation" and "lifestyle" of e-cigarettes, reverting to old paths.
After the 315 Gala named e-cigarettes, they remain a new category full of uncertainties, with both health issues and external regulatory environments being so. Before the answers to these two questions are settled, those in the e-cigarette industry can only rush to make money.
Previously, Zhu Xiaomu, a core member of Smartisan and product director, left to establish the FLOW e-cigarette brand.
The e-cigarette trend has been gaining momentum over the past year. In addition to Smartisan, the founders of Tongdao Dashi and Huang Taiji jointly launched the YOOZ e-cigarette, while CEOs of media outlets like Visual Journal have collaborated to introduce the LINX e-cigarette. Meanwhile, major investment firms like IDG and Zhenge Fund have begun appearing on the e-cigarette investment list.
Following this, the CCTV 315 Gala aired, naming e-cigarettes and stating that they involve false advertising. Prolonged use of e-cigarettes can also lead to nicotine dependence, and harmful substances like formaldehyde, propylene glycol, and glycerin were detected in the vapor produced.
After the CCTV exposure, platforms like Tmall urgently blocked the search keywords "e-cigarettes," and JD.com removed related products from their shelves. Many industry practitioners were alarmed, fearing that regulatory authorities would intensify oversight and introduce restrictive policies.Faced with the frenzy of capital and public skepticism, the nascent e-cigarette industry has been thrust into the spotlight. Where did this phenomenon come from, and where is it headed?
The Rise of E-Cigarettes is Rooted in Culture
If you smoke for the first time, the experience is usually not pleasant. Your lungs naturally reject the smoke, and taking a deep drag often leads to severe coughing, a spicy taste in your mouth, and tears in your eyes.
You may gradually adapt and come to enjoy the neurological relaxation that nicotine brings, but this physiological sensation alone is insufficient to sustain the entire cigarette industry.
The popularity of cigarettes is closely tied to their culture. Initially, cigarettes were beloved by Western intellectuals. Writers like Dumas, Maupassant, Balzac, and Hugo enjoyed being surrounded by smoke while writing and often depicted smoking in their works.
Subsequently, the consumer base for cigarettes expanded from the elite to the masses. Cigarettes in films have a more impactful presence than those in books, with various Western cowboys and 007 characters embodying a "macho" image associated with smoking.
The Rise of E-Cigarettes is Also Culturally Driven.
E-cigarettes were first invented in China. In 2003, pharmacist Hon Lik invented the first e-cigarette, which included a heating system that could vaporize liquid nicotine.
By 2006, e-cigarettes began exporting to Europe and America, quickly capturing a massive market. Today, over 90% of e-cigarettes are produced in Shenzhen, with only 6% of products consumed domestically.
The first generation of e-cigarettes focused on health, but this did not garner much attention. Instead, social media platforms like Instagram and Snapchat provided fertile ground for e-cigarettes to spread.
E-cigarettes were initially associated with subcultures. On Instagram, smokers were often young people with tattoos and trendy clothing, who enjoyed using the large vapor clouds from e-cigarettes to perform various tricks. Many e-cigarette videos featured electronic music and appeared in scenes of street dancing, skateboarding, and racing.
With the cultural seed planted, e-cigarettes gradually expanded from the "circle" to the outside world. However, over half of e-cigarette consumers are former non-smokers. Their reasons for choosing e-cigarettes are diverse: they are perceived as healthier than traditional cigarettes, can be used in non-smoking areas, do not affect others, offer more flavors, can help with quitting smoking, have a tech-savvy and aesthetically pleasing design, and produce large vapor clouds that are fun to use.
As more people become aware of the characteristics of e-cigarettes, they have started to gain popularity in the fashion and film industries. The "trial and error" of celebrities has attracted even more attention and purchases.The rise of e-cigarettes in China is somewhat ironic. Originally a Chinese invention, produced by Chinese manufacturers, it gained international acclaim, was imitated by young people domestically, and became a cultural symbol, gradually becoming a fashionable trend imported from abroad.
Subsequently, various manufacturers began to promote health benefits, attracting many who wanted to quit smoking and those who found e-cigarettes harmless and fun. But is it really that effective?
The Health Issues of E-Cigarettes are as Ambiguous as GMOs
E-cigarettes typically consist of two parts: the atomizer and the e-liquid, which can be simply understood as the relationship between a pen and ink.
The principle of e-cigarettes is to vaporize the e-liquid to create nicotine vapor, mimicking the process of igniting tobacco in traditional cigarettes.
E-cigarettes use a "non-combustion" method of producing vapor, which significantly reduces the most harmful substances, tar and carbon monoxide, while retaining addictive nicotine (which poses risks to fetal development and adolescent brain cognition). Therefore, theoretically, they can reduce the harm of smoking.
However, the chemical composition of e-cigarettes is mixed, and the vapor produced may contain heavy metals, volatile mixtures, and carcinogenic microparticles.
According to test data from Hong Kong Baptist University, the levels of polybrominated diphenyl ethers and formaldehyde produced by e-cigarettes after vaporization are significantly higher than those of traditional cigarettes.
Some Studies Hold Opposing Views.
In 2015, Public Health England (PHE) released a 113-page report stating that e-cigarettes are 95% safer than smoking. Despite facing numerous criticisms, PHE maintained this claim in 2018.
PHE Research
The Centers for Disease Control and Prevention (CDC) in the U.S. assessed e-cigarettes as follows:
As a new product, the long-term health effects of e-cigarettes are still unknown, but they do not recommend experimentation by adolescents and pregnant women.
In summary, the specific harms of e-cigarettes have not been conclusively determined, but they are certainly not related to "health." Especially in an industry without unified standards and with mixed brands, some e-cigarettes may pose risks comparable to traditional cigarettes.
Regarding the Help in Quitting Smoking.
Nicotine is an addictive substance, and withdrawal symptoms can occur when trying to quit smoking, causing dizziness, weakness, and irritability, leading to a relapse.
Nicotine patches, gum, and sprays can provide small amounts of nicotine to alleviate withdrawal symptoms and improve the chances of quitting. The World Health Organization (WHO) and the FDA have recommended corresponding smoking cessation methods.
However, research results regarding e-cigarettes' effectiveness in helping to quit smoking are inconsistent. NextTech reviewed mainstream studies and found some papers claiming they are effective, while others say they are not... According to WHO's statement in 2014, existing research is insufficient to prove that e-cigarettes can help completely quit smoking habits, and traditional nicotine therapies that have been proven effective are prioritized.
E-cigarettes may not necessarily help long-time smokers quit, but non-smokers who try e-cigarettes are likely to become addicted.
Before Policies Arrive, Make Money!Now, if you go to Shenzhen, you can find a complete e-cigarette industry chain. As long as you have money, you can enjoy a one-stop service from design, production, to sales.
At a recent e-cigarette salon, Wu Li, Deputy Director of Tianfeng Securities Research Institute, stated that with 5 million yuan, one could start an e-cigarette brand, while an entrepreneur nearby added that 3 million might suffice, which is a very low cost for hardware production.
There are no secret technologies in the industry; the costs of e-cigarettes from atomizers to e-liquids are not high. Once you buy an atomizer, you will inevitably continue to purchase e-liquid. This business model is not like smartphones, which have better cyclical control.
According to Wall Street reports, the gross margin of American e-cigarette company Juul is as high as 75%, and data from Dongfang Finance shows that the gross margin of e-cigarettes is nearly double that of the pharmaceutical manufacturing industry at 40%.
However, whether e-cigarettes can thrive in China largely depends on policies.
The trend of policies is also difficult to predict. For example, the UK generally supports the promotion of e-cigarettes, while the U.S. does not ban them but is conservative, especially strict in protecting minors; Hong Kong announced last year that it plans to ban e-cigarette sales entirely, while the mainland has not yet taken a clear stance, not even defining whether e-cigarettes are drugs, food, or tobacco.
The formulation of policies involves existing interests; tobacco tax revenue still ranks first among all industries in China, representing substantial profits. The state prohibits tobacco advertising and controls smoking scenes in films, but compared to Europe and America, it is relatively lenient.
The UK completely prohibits differentiated packaging for cigarettes, using uniform color packaging to reduce appeal to young people, and requires that over 65% of the package area be covered with warning labels and images of diseases caused by smoking (the images are too disgusting to show here??), emphasizing the negative effects of smoking.
Canada and Australia also require tobacco companies to make cigarette packs uniform in color, size, and shape, even prohibiting trademarks to prevent companies from attracting young people through packaging advertising.
The reason why the UK and the US have become the largest markets for e-cigarettes is largely due to strict smoking bans and high tobacco taxes. Since e-cigarettes can operate freely on social networks without being subject to tobacco tax rates, they have thrived.
It is well known that tobacco is one of the industries controlled in China, with vertical management by the state. In the context of the tobacco monopoly, e-cigarettes face challenges in becoming a mass commodity in China.
An industry practitioner told NextTech that the naming of e-cigarettes in the 315 Gala is a signal that a series of measures may be introduced next. He believes that "with 1.2 billion smokers in the country, even if there are 400 million smokers, regardless of whether smokers have demand, the scale of the e-cigarette industry will not be significant."
After the 315 Gala named e-cigarettes, some e-cigarette companies immediately changed their advertising copy, no longer emphasizing health, and began promoting the "cultural connotation" and "lifestyle" of e-cigarettes, reverting to old paths.
After the 315 Gala named e-cigarettes, they remain a new category full of uncertainties, with both health issues and external regulatory environments being so. Before the answers to these two questions are settled, those in the e-cigarette industry can only rush to make money.
