HNB Home · Heated Tobacco and Vaping Industry NewsChinese
Home›Vaping News›Vitavp Secures Over RMB 100 Million in Funding, Making a Former Vape Industry Veteran a Rising Star
Vaping News · [db:关健字]
Vitavp Secures Over RMB 100 Million in Funding, Making a Former Vape Industry Veteran a Rising Star
H cink2021-12-29Views 619Source 未知
In an era of strict regulation, the vaping industry does not seem to have hit bottom. Recently, vaping brand vitavp announced an A-round financing deal worth more than RMB 100 million. Investors include 2049 Investment Group, Harmony Capital, Essence Asia
The electronic atomization industry in the era of strong supervision does not seem to have fallen to the bottom.Recently, electronic atomization brand vitavp announced a Series A financing of more than 100 million yuan. Investors include 2049 Investment Group, Harmony Capital, Essence Asia and industrial strategic investors.Since the beginning of this year, the electronic atomization industry has repeatedly welcomed strong supervision, and the voices of negative comments from the outside world have been heard. On the other hand, capital has low-key accelerated the layout of the electronic atomization industry this year. In addition to vitavp, the electronic atomization brand Xiwu and YOOZ grapefruit have also received financing.From the moment of its birth, the electronic atomization industry has been full of controversy. The characteristics of "low threshold and high gross profit" made this "swallowing clouds" profiteering business finally targeted by various capitals in 2019, and it was in the limelight for a while. However, the subsequent "online sales ban" caused the electronic atomization industry to open higher and lower, and the industry's reshuffle accelerated.At the beginning of 2021, electronic atomization company RELAX officially landed on the New York Stock Exchange, with a market value of more than US$40 billion. This company, which was only established for three years, has created a myth of wealth creation. Today, the electronic atomization brand represented by vitavp only has attracted frequent attention in the capital market, which has also given renewed hope to the electronic atomization industry. The electronic atomization industry in the era of strong supervision does not seem to have fallen to the bottom.
Financing reappears, star capital raises only it
Since the beginning of this year, with the gradual tightening of policies, the electronic atomization industry has been in constant turmoil, but capital is still pouring in low-key. Especially from May to the present, electronic atomization brands Xiwu and YOOZ Youzi have all received financing one after another, and the electronic atomization market has obvious signs of recovery.This month, vitavp announced that it had received a series of 100 million yuan A financing from investors including 2049 Investment Group, Harmony Capital, Essence Asia and industrial strategic investors. Liu Dongyuan, founder of vitavp Weiit, said that this round of financing will be mainly used for product research and development, improving retail user experience and global expansion.It is worth mentioning that 2049 Group has invested in consumer track star projects such as Xiaoxian Stew, and Liang Mingshu, founding partner of Harmony Capital, is currently the CFO of 58 Group and the managing partner of 58 Industrial Fund. He is also an early investor in Xiaoxian Stew and Dingdong buying vegetables. It is understood that Mr. Liang Mingshu began to pay attention to the vitavp Only brand two years ago and has maintained friendly communication with the vitavp Only founding team.It is understood that vitavp's founder Liu Dongyuan entered the electronic atomization industry in 2011 and has led the implementation of many overseas electronic atomization brands in Asia. In 2015, vitavp was established only. In 2018, he received investment from Wang Sicong's Puri Capital. At the beginning of its establishment, vitavp Vitek R & D team used the inverted T-shaped short airway patent to overcome the pain point of oil leakage, and continued to explore in new technology fields. Not only did it jointly established a synthetic nicotine laboratory with Hengxin Group, but it also solved the problem of product sound. Two major technological improvements in the problem of liquid leakage.
#p#Pagination Title #e#As a team with a history of more than ten years, vitavp has only experienced the test of time for its products and corporate strength, which has also given capital confidence.Behind the attention of capital is the huge blue ocean market for electronic atomization. Data shows that my country's electronic atomization market size is expected to exceed 10 billion yuan in 2021, with an average annual compound growth rate of 72.5% in the past eight years. There are 350 million smokers in China, but the penetration rate of electronic atomization is less than 1%. In contrast, the penetration rate of electronic atomization in the United States has reached 13%, and the potential market size is considerable."Whether in terms of market size or future growth space, China's electronic atomization market has huge potential, and this market cannot be denied because of policies." Plaintiff Liu Dong sued Lieyun.com. From a commercial perspective, electronic atomization is undoubtedly a good business, and capital has always paid attention to the track.
Diversified product matrix, the only way to build industry barriers
With the influx of capital from all walks of life, the "entanglement" of the electronic atomization industry has intensified. Statistics show that there are currently more than 170,000 electronic atomization companies existing in the China market, and homogenization has become an unavoidable pain point in the industry."Many people think that electronic atomization products are similar, but we think that electronic atomization products themselves can also have many forms. Different groups of people need electronic atomization products with different attributes." Liu Dongyuan mentioned that since 2019, vitavp has adopted a multi-line strategy to expand its products horizontally.Today, vitavp has built a diverse product matrix, including flagship products, standard products, and drainage products that focus on sinking into the market. Among them, the X series is the first ceramic core product and will be built into a flagship model to stir up the existing market structure; the M series, as a standard model, will continue to consolidate its position as a leader in cotton cores in the industry; and the NewBee series, as a sub-brand, will seize the entry-level market and low-to-medium consumer market.In the current electronic atomization industry, leading brands have undoubtedly seized most of the market, but in the sinking market, users 'needs have not yet been met. Liu Dongyuan said that vitavp only hopes to be the "honey snow ice city" in the electronic atomization industry. At present, the company's stores are mainly concentrated in third-tier cities, and it has accumulated a lot of experience in channels and product strategies.As the forefront of the consumer industry, the electronic atomization industry has been moving forward with challenges. Whether it is taste or packaging, there is no way to establish a moat for the electronic atomization industry. Only with the help of technology can the construction of barriers be achieved.Vitavp has been deeply involved in the industry for many years. Its core team is senior experts in the field of electronic atomization, and its engineer team has an average of more than ten years of experience. In addition, most of the company's operation teams come from Huawei, Lenovo, WPP, Carlsberg and other companies. At present, the team led by the founder of Weiit has obtained more than 300 intellectual property certifications in terms of product technology, appearance, and functions, solving problems such as single appearance, poor battery life, and homogenization of electronic atomization products.Electronic atomization products are typical standard retail products. On this basis, the user's experience becomes particularly important. For this purpose, vitavp has established a nationwide networked after-sales network. Any franchise store can provide lifelong after-sales of mainstream models without human factors; in addition, vitavp has continuously explored in the user operation process, created original IP and peripheral products, and is committed to becoming a lifestyle brand in the era of electronic atomization.# p#pagination title #e#
Moving forward amidst controversy, the industry welcomes new opportunities
Since the first electronic atomization product was introduced in 2003, electronic atomization has a history of nearly 20 years in China. Electronic atomization companies led by Ruyan have opened the era of modern electronic atomization.While electronic atomization is developing rapidly, it has also exposed a series of problems, including advertising chaos, the trend of younger consumer groups, etc., and controversy surrounding electronic atomization continues. The electronic atomization industry, which has been wandering in gray areas all year round, has also encountered strong supervision this year.In March this year, the Ministry of Industry and Information Technology issued the "Decision on Amending the Implementation Regulations of the Law of the People's Republic of China on the Monopoly of Atomized Grass" in a public solicitation of opinions, which mentioned: "New tobacco products such as e-cigarettes shall refer to the relevant provisions on cigarettes in these Regulations." If the draft for comments is passed, it means that electronic atomization products will be included in the scope of tobacco, and the "huge profits" business of electronic atomization products may be greatly affected at any time.In June this year, the National Atomized Grass Monopoly Bureau and the State Administration for Market Regulation issued a notice on the "Special Action Plan to Protect Minors from Atomization and Protect Growth": conscientiously implement the requirement that no sales outlets should be set up around campuses, strictly investigate and punish illegal activities involving selling cigarettes to minors, and continue to strengthen supervision of the e-cigarette market.Policies are a double-edged sword for the electronic atomization industry. On the one hand, the implementation of relevant policies will also increase the difficulty of electronic atomization innovation to a certain extent and weaken the market's confidence in the industry; But on the other hand, the environment of the electronic atomization industry needs to be standardized. The industry chaos caused by barbaric development will change under the influence of policies, and non-compliant products and brands will be eliminated at an accelerated pace.At the level of protecting minors, vitavp Weitai released a minor verification system based on AI Face Recognition technology in the first half of 2019. This year, the system was further upgraded and provided free of charge to vitavp Weitai shop owners and sales personnel, age verification through intelligent Face Recognition and public security systems, currently covering all specialty stores."A really good team is a big wave. We will actively participate in the revision of industry standards and empower the industry to grow together." Liu Dongyuan said that for a long period of time, the electronic atomization industry will show a situation of one superpower and more strong.In addition, Liu Dongyuan also revealed that it is expected to launch a total of 10 million Newbee small black poles and open 15000 profitable specialty stores within three years.Over the past decade or so, the electronic atomization industry has developed rapidly, and it has been accompanied by controversy along the way. "Electronic atomization products need to be treated rationally, and it is crucial to establish a scientific and systematic understanding of electronic atomization products." Liu Dongyuan said that taking nicotine, which "turns pale after discussion", is actually part of the raw materials of medicine. The carcinogens in atomized grass are mainly tar. The industry still needs to do more market education to eliminate some misleading and prejudice.In the long run, the future space of the electronic atomization industry is worth looking forward to. Under the constraints of policies, it is a good medicine to shape a healthy industry environment. Electronic atomization products can enter the market with a more stable and healthy development situation.# p#pagination title #e#
