The Vaping Market Is Becoming Clearer: MOTI Emerges as the Brand Most Likely to Break Out
Recently, Huxiu and 36Kr both noted that in 2021 the vaping industry returned to competition based on product strength. As the industry’s number two player, MOTI is seen as the brand with the greatest potential to break out. Over the past two years, due t
Recently, Tiger Sniff and 36kr have pointed out that in 2021, the electronic cigarette industry is returning to competition based on product strength, and the industry second, MOTI, is the brand most likely to break out of the circle.
In the past two years, affected by the domestic online sales ban and the impact of the COVID-19 pandemic, the number of active electronic cigarette brands nationwide has decreased by 90%. The industry is beginning to concentrate on leading brands such as RELX and MOTI, and the competitive landscape is becoming clearer. Currently, leading brands like RELX and MOTI are gradually entering a virtuous cycle, pulling away from mid-tier and lower-tier brands.
From the prospectus and Q&A content of leading brand RELX, it can be seen that after the wild growth from 2018 to 2019, leading manufacturers are increasingly focusing on planning and investment in the entire electronic cigarette industry chain. In the future, brands that can become industry leaders must have strong capabilities in capital, products, technology, supply chains, and offline marketing channels.?
01 In terms of channel terminals, the second brand MOTI is ramping up efforts
The development of vaping devices cannot be separated from the word "compliance". After the introduction of de-internet regulation policies, online channels have been zeroed out, making offline channels a battleground for various brands. MOTI has launched the "Youth Shield Plan" at the retail end, explicitly prohibiting sales personnel from selling products to minors.
It is worth mentioning that MOTI, a Shenzhen brand that achieved success in overseas markets earlier and entered the domestic market in 2018, recently announced that it will launch a large subsidy plan in 2021, investing 1 billion yuan to open 10,000 new stores, with additional support for blank markets, core business districts, and small store owners.
By the end of 2020, the number of RELX brand specialty stores reached nearly 10,000, with a monthly growth rate of about 1,200 stores; MOTI opened about 3,000 specialty stores in the last quarter of 2020, with a monthly growth rate close to 1,000 stores, and this number is likely to increase after the new store subsidy policy is launched.
In the foreseeable year of 2021, RELX's offline store advantage over MOTI is expected to shrink from 3-4 times to less than 2 times, which means that RELX's specialty store system will no longer form an absolute advantage over trailing brands.
At the same time, MOTI has higher quality requirements for channel terminal construction. MOTI claims that its stores have entered over 90% of S-level business districts and have cooperated with chain businesses such as Wanda Plaza and Wuyue Plaza, covering a multi-tier market system from first-tier to third- and fourth-tier cities, occupying key urban shopping centers in various regions.
In the rapidly developing electronic cigarette terminal battlefield, each brand has its own path, and the vastness and rapid expansion of the track also provide space for their respective development. MOTI's development path, which balances quality and quantity, deserves more attention.
02 "Strong Product Power", the key to breaking the deadlock
Industry insiders reveal that currently, very few leading brands in China can achieve key technological breakthroughs and product iteration upgrades, and their product lines are too singular, mainly concentrated on pod-based vaping devices. Looking back from 2018 to 2021, there have been no significant technological changes in pod-based vaporizers, mostly limited to changes in the color or appearance of the devices, making innovation somewhat difficult.
Therefore, driving the industry with product-centric strategies and relying on a product matrix will be the core competitive barrier for successful brands in the industry and the greatest advantage for breaking the deadlock.
Researching various brands' terminal channels reveals that different leading brands have taken different paths in defining and extending their products.
RELX adopts a deep collaboration with leading suppliers to develop multiple product lines, with RELX Generation 1 and Generation 4 using different pod structures. Thanks to RELX's advantages in market promotion and terminals, these two products have consistently been the highest-selling products on the market.
MOTI, on the other hand, adopts a strategy of continuously introducing the latest industry technologies and upgrading its devices and pods. The popular products MOTI S LITE and MOTI C launched in 2020, due to their devices being produced by the brand's wholly-owned factory, directly incorporated the MCU frequency conversion chip and patented surge mode developed by the brand that year, enhancing the taste experience through curve heating control. According to the brand's external promotion, these two products, which claim to pursue "extreme experience", have received high praise from authoritative evaluation media, industry KOLs, and end users due to the introduction of the latest technology.
At the same time, MOTI has now launched a full matrix product line including pod-based vaporizers, smart POD MODs, disposable vaporizers, and pods, continuously evolving its products to maintain an upward momentum with strong product power.
Electronic cigarettes are a long-term track, and entering the competition of leading brands inevitably requires capital scale and core technology to stand firm amid national regulatory policies, industry reshuffling, and market competition, achieving sustainable development and seizing larger market space.
From the prospectus and Q&A content of leading brand RELX, it can be seen that after the wild growth from 2018 to 2019, leading manufacturers are increasingly focusing on planning and investment in the entire electronic cigarette industry chain. In the future, brands that can become industry leaders must have strong capabilities in capital, products, technology, supply chains, and offline marketing channels.?
01 In terms of channel terminals, the second brand MOTI is ramping up efforts
The development of vaping devices cannot be separated from the word "compliance". After the introduction of de-internet regulation policies, online channels have been zeroed out, making offline channels a battleground for various brands. MOTI has launched the "Youth Shield Plan" at the retail end, explicitly prohibiting sales personnel from selling products to minors.
It is worth mentioning that MOTI, a Shenzhen brand that achieved success in overseas markets earlier and entered the domestic market in 2018, recently announced that it will launch a large subsidy plan in 2021, investing 1 billion yuan to open 10,000 new stores, with additional support for blank markets, core business districts, and small store owners.
By the end of 2020, the number of RELX brand specialty stores reached nearly 10,000, with a monthly growth rate of about 1,200 stores; MOTI opened about 3,000 specialty stores in the last quarter of 2020, with a monthly growth rate close to 1,000 stores, and this number is likely to increase after the new store subsidy policy is launched.
In the foreseeable year of 2021, RELX's offline store advantage over MOTI is expected to shrink from 3-4 times to less than 2 times, which means that RELX's specialty store system will no longer form an absolute advantage over trailing brands.
At the same time, MOTI has higher quality requirements for channel terminal construction. MOTI claims that its stores have entered over 90% of S-level business districts and have cooperated with chain businesses such as Wanda Plaza and Wuyue Plaza, covering a multi-tier market system from first-tier to third- and fourth-tier cities, occupying key urban shopping centers in various regions.
In the rapidly developing electronic cigarette terminal battlefield, each brand has its own path, and the vastness and rapid expansion of the track also provide space for their respective development. MOTI's development path, which balances quality and quantity, deserves more attention.
02 "Strong Product Power", the key to breaking the deadlock
Industry insiders reveal that currently, very few leading brands in China can achieve key technological breakthroughs and product iteration upgrades, and their product lines are too singular, mainly concentrated on pod-based vaping devices. Looking back from 2018 to 2021, there have been no significant technological changes in pod-based vaporizers, mostly limited to changes in the color or appearance of the devices, making innovation somewhat difficult.
Therefore, driving the industry with product-centric strategies and relying on a product matrix will be the core competitive barrier for successful brands in the industry and the greatest advantage for breaking the deadlock.
Researching various brands' terminal channels reveals that different leading brands have taken different paths in defining and extending their products.
RELX adopts a deep collaboration with leading suppliers to develop multiple product lines, with RELX Generation 1 and Generation 4 using different pod structures. Thanks to RELX's advantages in market promotion and terminals, these two products have consistently been the highest-selling products on the market.
MOTI, on the other hand, adopts a strategy of continuously introducing the latest industry technologies and upgrading its devices and pods. The popular products MOTI S LITE and MOTI C launched in 2020, due to their devices being produced by the brand's wholly-owned factory, directly incorporated the MCU frequency conversion chip and patented surge mode developed by the brand that year, enhancing the taste experience through curve heating control. According to the brand's external promotion, these two products, which claim to pursue "extreme experience", have received high praise from authoritative evaluation media, industry KOLs, and end users due to the introduction of the latest technology.
At the same time, MOTI has now launched a full matrix product line including pod-based vaporizers, smart POD MODs, disposable vaporizers, and pods, continuously evolving its products to maintain an upward momentum with strong product power.
Electronic cigarettes are a long-term track, and entering the competition of leading brands inevitably requires capital scale and core technology to stand firm amid national regulatory policies, industry reshuffling, and market competition, achieving sustainable development and seizing larger market space.
