With Stronger Smoking Bans on the Rise, China’s E-Cigarette Boom Is Entering a Countdown Phase

According to news from China's electronic cigarette information: With the central government's new regulation of "leading officials taking the lead in banning smoking in public places," local smoking bans are continuously following suit. During the Two Sessions, Huang Jiefu, president of the Tobacco Control Association, clearly stated that China's tobacco control legislation will be promulgated by the end of 2014 at the latest. The trend in the tobacco market has begun to shift. Previously, Dongfeng Holdings and Shanghai Green New developed electronic cigarette concept stocks, drawing significant attention to the domestic electronic cigarette market. In early 2014, the strong alliance between China Tobacco's subsidiary JinJia and domestic electronic cigarette giant HeYuan was hailed as a landmark event in the tobacco industry's innovative reform. The electronic cigarette market will fully explode in 2014. Electronic Cigarette Exports Shift to Domestic Sales
Domestic Smokers Remain Cautious Before 2013, most electronic cigarettes were primarily exported. As the foreign electronic cigarette market gradually became saturated, coupled with strict regulations imposed by various countries, 80% of electronic cigarette manufacturers experienced a significant decline in foreign orders. Meanwhile, the gradual implementation of domestic smoking bans has led more electronic cigarette businesses to lean towards the domestic market. However, compared to the explosive growth of electronic cigarettes abroad, the domestic market is relatively tepid, and smokers' attitudes towards electronic cigarettes have polarized. Most smokers indicated that electronic cigarettes were very popular in China in 2009 due to television advertisements, but after purchasing, they encountered issues such as leaking, explosions, and unpleasant usage experiences, with after-sales service being virtually non-existent, leading to a loss of confidence in electronic cigarettes. Five years have passed, and electronic cigarettes have once again entered the smokers' field of vision. What is the future for electronic cigarettes in China? Why is there such a disparity in electronic cigarette prices? Are most electronic cigarettes on the market substandard products? With these questions, reporters visited the largest electronic cigarette brand company in China (Kingsong/康诚一品). Technology Leadership is the Only Way for Domestic Electronic Cigarettes Kingsong is an independent leading brand in the domestic electronic cigarette market under HeYuan, focusing on sales, promotion, and brand building since 2009, becoming one of the most recognized and beloved brands among consumers. Accompanying Kingsong's general manager, we mainly visited the production base, R&D laboratory, and quality inspection engineering department, allowing smokers to gain a deeper understanding of electronic cigarettes. "The entry barrier for domestic electronic cigarettes is low; one machine can be operated by one worker, and with free e-commerce platforms, they can be packaged and sold. Due to the lack of market regulation, businesses can exaggerate claims at will, claiming international brands and thousands of sales outlets, even the production base and after-sales phone numbers are fake, but no one is monitoring it. Consumers end up buying substandard products, and the after-sales phone number is a dead line. Even if they complain, businesses just need to change the brand name or e-commerce platform and continue selling. With low costs and high profits, many manufacturers lack certification, and very few are genuinely committed to quality; this is the current state of domestic electronic cigarette manufacturers," revealed Mr. Zhao from Kingsong. "We have more than a dozen world-class 100,000-level clean rooms. Look at these machines; they are the most advanced testing equipment imported from abroad, specifically used to detect whether electronic cigarettes are contaminated during production and whether there are toxic substances or radiation. Kingsong's electronic cigarettes use internationally edible-grade PET for the mouthpiece, free of plasticizers. The core component of the electronic cigarette uses the world's leading sixth-generation transparent atomizer, which has no cotton core or fiberglass rope, preventing fiberization that could affect the respiratory system and lungs, achieving zero harm for the first time. To address the common issues of overly sweet and poor-tasting e-liquids on the market, we specifically sampled from Yunnan Tobacco, taking a year to develop a plant-extracted e-liquid in collaboration with the National Administration of Traditional Chinese Medicine, aiming for a taste closest to tobacco. The battery is a powerful smart lithium battery that autonomously adjusts the frequency, combined with smart atomization wire to control airflow, creating the best atomization experience. To prevent counterfeits of Kingsong products on the market, all product packaging features national laser anti-counterfeiting trademarks for consumer verification. After production, products must undergo thirteen quality inspection processes, and any non-compliant products are destroyed and will not be sold on the market." After visiting the clean production workshop, Mr. Zhao took reporters to visit Kingsong's R&D building. Here, faces from all over the world gather, communicating in various languages, creating an international perspective and an inclusive work atmosphere. They are all top talents in R&D from around the globe. "What do you think is the core key to the future development of electronic cigarettes in China?" "Technology. Technology changes the world; in any industry, only those who dare to innovate can lead the market and avoid homogenization. Kingsong's goal for future development is to become an inseparable part of people's lives. By continuously integrating electronic, communication, and software technologies, electronic devices will evolve into wearable devices, becoming smarter, more technological, cooler, flashier, and more entertaining. They will become social tools that people enjoy sharing. This is the motivation behind our annual investment of hundreds of millions in R&D." Building a brand requires a company to have a strong financial chain. For example, product safety, quality, appearance design, flavor, and nicotine content segmentation. Brand building, channel promotion, and technological research all rely on financial support. Those substandard products and street vendors do not possess the strength of Kingsong, and some even sell at prices higher than Kingsong, which is quite unbelievable. #p#分页标题#e#

It is hoped that with more tobacco giants entering the electronic cigarette industry, it will promote technological innovation in electronic cigarettes, change the mixed market environment, raise market entry barriers, and eliminate substandard products. Of course, the most important thing is to promote electronic cigarette regulation, safeguard the legal rights of brand businesses and consumers, and restore consumer confidence in electronic cigarettes; this is an urgent task.