RELX Expands Globally with Strong R&D Instead of Chasing Quick Results

In recent years, the global new tobacco market has flourished. Foreign brands like IQOS and Juul are highly favored by consumers, while many domestic electronic cigarette brands have emerged. However, in the NGP (Next Generation Products) industry, the strategic styles of the Chinese and Western markets are quite different. Most Chinese brands focus on domestic competition, while Western brands prefer overseas expansion.

The producer of IQOS is the American tobacco group Philip Morris International, but it is often mistakenly thought to be a Japanese brand because IQOS's largest sales market is not in the United States but overseas in Japan. According to data from the Japanese Consumer Network System, IQOS held a market share of 15.8% in the Japanese tobacco market in 2018. At the same time, IQOS is continuously penetrating other overseas markets such as South Korea, Southeast Asia, and the European Union. The well-known American electronic cigarette brand Juul, invested by the tobacco group Altria, was very popular in 2019, with an estimated annual revenue of $3.4 billion. In addition to the U.S. market, Juul has opened markets in the UK, Israel, and Germany, and has applied for trademarks in Malaysia and Singapore, with plans to enter the Indonesian electronic cigarette market next.

Like many international brands, RELX has also made globalization an important development strategy. At the recent RELX product launch event, the new product RELX α, which was developed over 359 days as a gift to global users, was unveiled. RELX CEO Wang Ying stated in an interview that RELX will continue to increase investment in professional technology research and development; at the same time, RELX will continue to focus on overseas markets, aiming to become a brand that influences the lifestyle of global smokers by 2020.

Initial experiences with the upgraded product have received rave reviews.

Wang Ying admitted that the RELX α is the result of the hard work of the RELX R&D team, with significant investment in research and higher material standards, and an increase in related components for a better experience. According to official RELX information, the biggest highlight of the new product is the application of the "extraction technology" developed by RELX, which creates the industry’s best comprehensive solution with a ring-shaped airway design.

It includes four major technological innovations: first, the airway has been adjusted hundreds of times and tested by dozens of "old smokers," achieving a similarity of 95% in resistance compared to real cigarettes; second, the new airway design with three bends and a length of 57mm creates longer air contact, awakening the gas layers like a fine wine, resulting in an exceptionally delicate and rich taste; third, the new 30mm wall-mounted chamber effectively locks in condensate, "ensuring every puff is smooth and pure"; finally, the new product incorporates four layers of anti-leak technology, making the structure more robust and leak-proof.

Since the launch of the RELX α on April 1, many users have placed orders for the new product and shared their initial experiences on social media. "The taste upgrade is obvious, the condensate lock is visible, and the ergonomic design is comfortable to hold" have become key phrases in user reviews of the RELX α.

At the same time, the alpha pods, which focus on fresh ingredient flavors, have also received high praise from users, with flavors like "Mango Pomelo Sago, Lychee Ice" and the popular "Green Bean Ice" giving users a "sense of instant time travel."

Dedicated research supports the establishment of industry standards.

According to RELX CPO Chen Chen, RELX's extraction technology is a systematic solution that forms liquid or solid substances needed by users and then releases them in a gaseous dispersion system. The technology consists of three major modules: e-liquid technology, atomizer technology, and liquid-device matching technology, all of which work together to enhance the user's overall experience in terms of satisfaction, flavor, stability, and quality.

Industry media have stated: "The significance of the birth of extraction technology lies in setting a visible and tangible industry benchmark and technological barrier, significantly raising the industry entry threshold, which is a good thing for the standardization of the entire industry."

Since its inception, RELX has focused on research and development as a key investment area. In terms of hardware, RELX has built a laboratory of over 300 square meters that meets CNAS laboratory certification requirements, with an initial investment of 10 million yuan, focusing on in-depth research on electronic cigarette stability, e-liquid safety, aerosol safety, and core raw materials. In terms of software, RELX has gathered a group of industry leaders from fields such as flavor chemistry, technical hardware development, and product innovation design.

RELX's e-liquid R&D director, Jiang Xingtao, has nearly 20 years of experience in tobacco and flavor chemistry research and holds two PCT international patents and 50 Chinese invention patents. He stated that RELX has invested significantly in safety testing. For example, in terms of aerosol testing, RELX conducts self-testing according to EU electronic cigarette requirements and standards, and external testing with research institutions and third-party testing agencies, referencing international and relevant industry standards, with high professional requirements for both people and equipment.

In addition, RELX is also committed to cutting-edge research in the entire electronic cigarette industry, such as systematic assessments of electronic cigarette emissions based on human epithelial cells and tumor cells in vitro, as well as future research topics on clinical evaluations of electronic cigarettes... This not only has far-reaching significance for society and users to understand electronic cigarette categories more rationally and scientifically but also provides effective data support for the establishment of future industry standards, thereby leading and supporting government departments in promoting the orderly development of the electronic cigarette industry.

Expanding into overseas markets to amplify China's voice.

In addition to investments in the domestic market and new product launches, RELX has been active in overseas markets. Since the end of the third quarter of 2018, it has entered overseas and global markets. After five months of efforts, RELX is now used by users in 43 countries worldwide. At the same time, RELX has maintained good dialogue with international peers, appearing at major international electronic cigarette exhibitions in Birmingham, Russia, New Zealand, the Philippines, Bahrain, and Las Vegas, frequently interacting with top international electronic cigarette manufacturers.