Mastering Core Technology Is the Foundation of the Vaping Industry

As we enter the second half of 2019, the market for e-cigarettes continues to heat up, with numerous entrepreneurs and investors entering the field. However, most brands are produced by OEM factories, with core technologies and patents owned by these factories. While this approach saves costs for brands, it also lowers the industry threshold, leaving small brands without any core technological advantages, making the quality and safety of their products uncertain.

Leading internet brands like RELX have recognized this issue and are actively investing in the research and development of nicotine salts and atomization technology. Meanwhile, pioneering brands like VOOPOO are gradually applying their atomization and chip technologies to the small device market that better suits Chinese consumers. The strategic layouts of various e-cigarette brands indicate that the players who will survive in the future e-cigarette market will be those with core technological strengths.

Despite the popularity of e-cigarettes,

the market has not yet been fully developed.

As of June 2019, there have been 14 financing rounds for e-cigarette companies in China, with a total financing amount exceeding 574 million RMB, far surpassing the total investment amount for the entire previous year. According to the "Market Demand Forecast and Investment Strategy Planning Analysis Report for China's Tobacco Products Industry" released by the Forward Industry Research Institute, China is the world's largest e-cigarette production center but not the largest consumer country. Currently, the scale of China's e-cigarette market is around 4 billion RMB, with a very low penetration rate, and the consumption scale is still less than 15% of that of the largest consumer country, the United States.

China has 350 million smokers, making e-cigarettes a massive incremental market with significant development potential. On one hand, the domestic e-cigarette market is still in its infancy and has not yet fully formed; on the other hand, the low awareness and acceptance of e-cigarettes among consumers also contribute to the small scale of the domestic market.

How do we define a qualified or excellent e-cigarette?

The core answer must be safety.

E-cigarettes are a combination of electronic hardware and nicotine intake. Whether it is nicotine salt e-liquid or electronic atomization devices, discussing taste and experience without addressing safety is irresponsible.

The popular small e-cigarettes in China can generally be divided into three categories: refillable, pre-filled replaceable pods, and disposable. Among these, pre-filled replaceable pods and disposable e-cigarettes are the most popular. The e-liquids in these two categories are pre-filled by manufacturers, leaving consumers to passively accept the quality of the e-liquid.

However, most people only focus on the taste of e-cigarettes, the penetration of e-liquid, and issues like leakage, while their understanding of the quality of e-liquid and the materials used for heating and atomization, which relate to inhalation safety, is lacking.

In fact, many countries and regions have already established corresponding inspection and testing standards, such as the EU's TPD and the US FDA. VOOPOO has been in the international e-cigarette market for many years, and its product quality standards have aligned with international standards, exporting to over 200 countries and regions and passing various qualifications, becoming an internationally recognized brand by users, the industry, and governments.

(Zip Pod cartridge structure)

The latest pre-filled replaceable pod e-cigarette from VOOPOO, the ALPHA Zip Pod, is developed with a focus on the core point of "safety," continuing VOOPOO's philosophy of "innovation and health" in its research and quality control: using natural organic cotton imported from Japan, nicotine salt e-liquid imported from the US, and precision nickel-chromium alloy atomization wire, ensuring a great taste experience while maximizing user health.

Another often overlooked factor is the chip.

Do e-cigarettes need chips? The answer is yes.

Previously, only vape players who had experience with large cloud devices understood e-cigarette chips, which significantly affect vapor volume, atomization taste, and also ensure stable current and battery protection. Most e-cigarette accidents occur in mechanical devices or products without chip protection.

VOOPOO's success in the international e-cigarette market is closely related to its chip technology strength: VOOPOO is a global strategic partner of the high-end chip supplier GENE and has jointly developed a series of exclusive high-end chips. The most well-known is the DRAG series, which was the first to feature the GENE chip, creating a record for the fastest ignition speed in the world at 0.025 seconds, earning it the title of "instant hit" classic among global e-cigarette users.

(GENE.Pod chip used in Zip Pod)

In fact, chip technology is also an indispensable part of small e-cigarette products. Take VOOPOO's GENE.Pod chip, for example; it is a chip designed specifically for small e-cigarette products, capable of intelligently regulating output current: explosive output on the first puff greatly reduces the empty puff sensation for users; constant voltage output maintains a consistent taste even when the battery is low, a change that is rare among small e-cigarette products on the market. Additionally, the chip includes features like 10-second smoking timeout protection, overcurrent protection, and atomizer short-circuit protection, allowing consumers to enjoy their experience comfortably and safely.

The development of e-cigarettes is akin to the first generation of 5G communication products, representing a groundbreaking product for the industry and the era. The speed of development for new things often exceeds people's understanding. When 4G emerged, we were skeptical about its necessity. Looking back after just a few years of development, it has already integrated into our lives and become a daily necessity. I believe the rapidly developing e-cigarette market will follow a similar path; it is not merely a product of capital but should be defined as a technological advancement driven by new consumer demands. Embracing change and innovation is the way forward for the e-cigarette industry.