Interview with VAPES Yuan Shuqing: Ten Years in the E-Cigarette Industry, INS Pro Sweeps the New Mar

In 2003, the first electronic cigarette—"Ru Yan" was born in China, quickly generating nearly 1 billion RMB in sales. However, in 2006, CCTV exposed the false advertising and smoking cessation effectiveness of "Ru Yan", leading it to reluctantly go overseas, and the Chinese electronic cigarette market fell silent.

In 2009, Yuan Shuqing entered the electronic cigarette industry for the first time; focusing on e-commerce channels, he initially dealt with smoking cessation products: realistic electronic cigarettes with yellow tips and white bodies, smoking cessation patches, and candies, among others.

At that time, vapor culture had already taken root in Europe and the United States, while China’s electronic cigarette market was still in its very early exploratory stage. That year, Chinese smokers consumed 38% of the world's cigarettes—nearly 2.3 trillion sticks, but over 1 million people died indirectly from smoking-related causes.

Yuan Shuqing realized that the demand for smoking alternatives among smokers was always present, and the realistic electronic cigarettes sold had strong functional attributes, with consumers primarily being smokers.

By 2013, his Taobao store had reached a four-crown level.

In 2014, the scale of China's electronic cigarette market rose to 100 million USD, with total production nearing 600 million units. Although he had not yet found an electronic cigarette product that excelled in all aspects, Yuan Shuqing had already seen the bright future of electronic cigarettes and prepared to independently create a brand. He registered the trademark "VAPES", representing the entire vaping category, with a clear meaning.

The public often equates the term "Vape" with electronic cigarettes, but it is more accurately understood as "vaporization". Since the invention of electronic cigarette products, their concepts and meanings have been evolving, while the core technology of vaporization replacing combustion has remained unchanged.

Accumulating experience, INS Debuts

After ten years of accumulation, in 2018, VAPES launched the first generation of the INS series pod products.

Yuan Shuqing's primary consideration in product development is user experience. With a team that has interacted with a large number of end consumers and major brand agents over the past decade, their unique experience has played a significant role.

Having witnessed the rich cotton core era of electronic cigarettes, Yuan Shuqing also applied cotton core vaporization technology in his products, which has the advantage of achieving a flavor restoration rate of 80-90%, allowing the injected e-liquid to transform into a more authentic taste.

As the electronic cigarette trend emerged, dozens of new pod brands were born around the same time, with many new entrants using ceramic cores. Especially after the Shenzhen exhibition in April this year, multiple electronic cigarette launch events have been held across the country every month. The battle for electronic cigarettes has begun, with everyone competing for capital, channels, and marketing.

The VAPES team members have been "old hands" who expanded their business with Yuan Shuqing from the early stages of industry development. Therefore, the first generation INS, without any marketing activities or media promotion, relied solely on the team's various resources within the industry to establish a complete provincial and municipal agency system, with around 50 agents of various sizes. Once launched, sales soared, and fan feedback was exceptionally positive, with many flavors that could become staples; comments like "I love it" and "It's a thrilling feeling" accumulated a very good reputation.

In terms of channels, the VAPES brand has always believed that electronic vapor products are experience-driven products. Customers can try them in physical stores, and staff can answer questions face-to-face, which is more conducive to product dissemination and sales. Therefore, they insist on focusing on offline sales, which account for over 80% of sales; online operations for JD self-operated and Tmall flagship stores are also managed by their own team, ensuring price control and addressing malicious low-price links throughout the year, better protecting the product pricing system and providing a healthy profit margin for all levels of agents.

After nearly a year of feedback and validation, the first generation INS product is moving towards a mature iteration.

At the end of October, at the Shanghai electronic cigarette exhibition, the second generation INS Pro pod product and INS mini disposable pod product are set to be launched.#p#分页标题#e#

Just like the advantages of cotton core technology, its disadvantages are also quite pronounced—since the e-liquid comes into direct contact with the heating wire, a loud popping sound can be heard during inhalation; after a period of time, there may also be oil leakage. This is precisely the issue that the second generation product Pro seeks to improve.

The new series of products adopts a ceramic and cotton oil guiding method, with a vertical structure directly connecting the airflow path, striving to combine the advantages of both materials. This increases cushioning during oil guiding, reduces the chances of leakage, while retaining the cotton core's flavor restoration capability, and innovatively addresses the condensation issue that everyone struggles with by adding a liquid-absorbing cotton in the airflow path, which can absorb 90% of the condensation generated during vaporization, truly achieving no leakage, no condensation, and great flavor.

VAPES: Weathering Changes, Staying True to Oneself

Recently, the public discourse surrounding electronic cigarettes has wors, with the potential harms of electronic cigarettes attracting criticism for appealing to minors under the guise of a trendy concept. Some brands have faced scrutiny for misleading advertising during product promotion, all of which have been defined as social issues under the inadequate regulatory framework.

Yuan Shuqing believes that in this ecosystem, the Chinese electronic cigarette industry is facing increasingly polarized voices. Just as there are always differing opinions in media reports about electronic cigarettes, some early consumers are more willing to accept new things and treat electronic cigarettes more objectively. In contrast, for those completely unfamiliar with electronic cigarettes, negative reports become the only calling card for electronic cigarettes.

In today's half-open, half-sensitive electronic cigarette industry, after launching new products, VAPES also chooses to act cautiously to avoid risks.

"We hope to be a brand with social responsibility and convey this value to consumers," said Yuan Shuqing.

First, Yuan Shuqing stated that they would increase education for agents, uniformly placing "Minors are prohibited from using" signs in all offline stores, and strictly registering consumer purchase information. They will also add identity verification steps such as name, age, and phone number on their official WeChat account to prevent minors from making purchases.

Additionally, during product promotion, VAPES will strictly comply with the new advertising law requirements. In the long run, content restrictions will make electronic cigarettes more resilient. For example, Yuan Shuqing mentioned that the term "smoking cessation" itself is not entirely fitting for the actual role of electronic cigarettes, while the "craving relief" that most products pursue is also highly controversial.

No matter how the winds change, staying true to oneself is essential. Only by doing their part can the future of electronic cigarettes in China have a place. Yuan Shuqing does not believe that the government will completely ban electronic cigarettes.

After the launch of the second generation product, they plan to categorize sales channels based on the characteristics of different products. Specifically, the newly launched INS Pro will primarily focus on offline channels, while the first generation INS will transition to online sales. Additionally, disposable pods will target various fast-moving consumption scenarios, allowing consumers to initially engage with the brand.

Regarding financing plans, with a solid foundation, the future looks promising. Yuan Shuqing is also focusing on optimizing channels. Strong product capabilities and the repurchase rate of pods should be key areas for refining an electronic cigarette product. Yuan Shuqing appears very confident in this brand's endurance.