New Uncertainty in the E-Cigarette Atomizer Market? The Supply-Side Logic Behind JVE's New Price Cut
The vaping industry has never lacked attention, nor interest from the capital markets. At the start of 2021, the sector saw major news: after Smoore’s Hong Kong IPO, RLX Technology officially listed on the NYSE on January 23. Some analysts believe the ind
The electronic atomizer industry has never lacked popularity or attention from the capital market.
At the beginning of 2021, a major event occurred at the electronic atomizer track. Following Simmore's IPO in Hong Kong, on January 23, Fog Core Technology (Yueshi) officially landed on the New York Stock Exchange. Some industry analysts believe that the electronic atomizer industry may usher in a second round of "tuyere". The reason why the capital market likes this track so much is that even if the industry moves offline, the growth of the electronic atomizer market continues. According to a data from iiMedia Research, the market size of China's electronic nebulizer will increase to 8.33 billion yuan in 2020, and the market size is expected to exceed 10 billion yuan in 2021. On the one hand, the industry still has growth potential; on the other hand, the electronic atomizer business is also constantly undergoing new changes. Electronic atomizer track variations: The underlying logic evolution from "substitute" to "complement" The original intention of the commercial product of electronic atomizer was to reduce the harm of traditional tobacco to personal health. In terms of commercial logic, it was a "substitute" for some tobacco. This has also made the electronic atomizer industry optimistic about the capital market for a long time: as an industry with a market size of one trillion yuan, tobacco has a good market space even if the penetration rate is only a single percentage. Under this logic, a large wave of brands emerged in the early days of the industry, and the industry entered a period of barbaric growth. The development of an emerging industry often follows this path: from the early emergence of angel investment in the industry, to the rapid development of the industry under the catalysis of capital and becoming a "outlet", and finally after returning to rationality, it enters a new long-term growth stage-the maturity period. For the electronic atomizer industry, the 2019 online ban was an important turning point. Under supervision, the industry has cooled sharply and the industry's barbaric growth has come to an abrupt end. After such industry variations, the industry has ushered in new changes. In addition to the successful listing of top players in the industry, new brands like JVE Non-Me have also been successfully launched. The development of the industry is steadily transitioning to maturity.
The new policy issued by JVE is actually a Pareto optimal solution to the industry problem of universal distribution of counterfeit goods.On the premise of the same supply quality, we will lower the price threshold, increase the supply of market value, and solve the problem of universal distribution of counterfeit goods from the root cause.
In the traditional economy, it is emphasized that demand determines supply, but Saieconomics believes that there is supply determinism in the market. For brands, the quality of the supply side directly affects the competitiveness of the product.
1. Product supply under the attribute of consumer goods
Compared with competing products, the JVE Non-Self Ceramic Core atomizer is priced at 59 yuan for three pieces and is on sale in 26 flavors; while the official cotton core atomizer launched by yooz costs 30 yuan, but only has one mint flavor. The soft mist bomb series of cotton core atomizers launched by Yue Ke sells for 20 yuan per piece, but there are only three flavors.
Whether in terms of atomizing core materials, price and richness of flavors, JVE has certain advantages compared with competing products. In addition, in terms of channels, JVE can be purchased from non-licensed JVE brands across the country, while the low-cost atomizer products of some electronic atomizer brands are only sold in limited offline channel areas.
After moving offline, electronic atomizer products have added some FMCG characteristics, such as focusing on channels like FMCG. JVE is not my brand authorization point nationwide, which further reduces user access costs.
2. Satisfaction with the health demands of smokers in the sinking market
For the industry, JVE's launch of low-cost atomizer products will have at least two positive impacts. One is to crack down on counterfeit goods, which continuously reduces the living space for generic distribution of counterfeit goods; the other is to stimulate more smokers who sink into the market.# p#pagination title #e#
In fact, companies that take the lead in lowering prices on atomizer products are expected to occupy more markets and find more users among the existing smokers. This actually reflects the social attributes of electronic atomizers as a social consumer good.
With the rise of Short Video live streaming with goods, the consumption power of the sinking market has become increasingly prominent. In the sinking market, many tobacco lovers actually have strong demands for replacing traditional tobacco, but the price of atomizers is not low. The price reduction of brand atomizers does not degrade the quality, which is also to satisfy potential consumer demands in the sinking market from the side, and then allow more people to share the dividends of technological development.
3. Value supply to promote the healthy development of the industry
Judging from the overall development of the industry, although one or two leading companies have emerged from the electronic atomizer track, the market is still large enough to accommodate the rise of new giants. For example, target more vertical crowds, or more subdivided tracks, etc. Electronic atomizer brands such as JVE Non-Me are further developing steadily through differentiated competition.
In addition, how to balance the growth rhythm of channels and products, and how to provide value supply to the industry and society while achieving its own growth are the focus that needs attention.
In fact, the biggest business consciousness of electronic atomizer companies at present is-cautious thinking.
The so-called cautious thinking means that for individual enterprises, they often need to think about products and market competition from an industry perspective. Technically, on the one hand, it is to establish one's own competitive advantages, and on the other hand, it also promotes industry progress.
Behind the launch of JVE's new non-self electronic atomizer policy, this is actually the same thing"Careful thinking": The price reduction of atomizer products not only promotes the development of the company itself, but is also of great benefit to the healthy development of the entire industry.This is precisely the most easily ignored and very important competitive code of conduct in the market competition of the electronic atomizer industry.
At the beginning of 2021, a major event occurred at the electronic atomizer track. Following Simmore's IPO in Hong Kong, on January 23, Fog Core Technology (Yueshi) officially landed on the New York Stock Exchange. Some industry analysts believe that the electronic atomizer industry may usher in a second round of "tuyere". The reason why the capital market likes this track so much is that even if the industry moves offline, the growth of the electronic atomizer market continues. According to a data from iiMedia Research, the market size of China's electronic nebulizer will increase to 8.33 billion yuan in 2020, and the market size is expected to exceed 10 billion yuan in 2021. On the one hand, the industry still has growth potential; on the other hand, the electronic atomizer business is also constantly undergoing new changes. Electronic atomizer track variations: The underlying logic evolution from "substitute" to "complement" The original intention of the commercial product of electronic atomizer was to reduce the harm of traditional tobacco to personal health. In terms of commercial logic, it was a "substitute" for some tobacco. This has also made the electronic atomizer industry optimistic about the capital market for a long time: as an industry with a market size of one trillion yuan, tobacco has a good market space even if the penetration rate is only a single percentage. Under this logic, a large wave of brands emerged in the early days of the industry, and the industry entered a period of barbaric growth. The development of an emerging industry often follows this path: from the early emergence of angel investment in the industry, to the rapid development of the industry under the catalysis of capital and becoming a "outlet", and finally after returning to rationality, it enters a new long-term growth stage-the maturity period. For the electronic atomizer industry, the 2019 online ban was an important turning point. Under supervision, the industry has cooled sharply and the industry's barbaric growth has come to an abrupt end. After such industry variations, the industry has ushered in new changes. In addition to the successful listing of top players in the industry, new brands like JVE Non-Me have also been successfully launched. The development of the industry is steadily transitioning to maturity.
The new policy issued by JVE is actually a Pareto optimal solution to the industry problem of universal distribution of counterfeit goods.On the premise of the same supply quality, we will lower the price threshold, increase the supply of market value, and solve the problem of universal distribution of counterfeit goods from the root cause.
In the traditional economy, it is emphasized that demand determines supply, but Saieconomics believes that there is supply determinism in the market. For brands, the quality of the supply side directly affects the competitiveness of the product.
1. Product supply under the attribute of consumer goods
Compared with competing products, the JVE Non-Self Ceramic Core atomizer is priced at 59 yuan for three pieces and is on sale in 26 flavors; while the official cotton core atomizer launched by yooz costs 30 yuan, but only has one mint flavor. The soft mist bomb series of cotton core atomizers launched by Yue Ke sells for 20 yuan per piece, but there are only three flavors.
Whether in terms of atomizing core materials, price and richness of flavors, JVE has certain advantages compared with competing products. In addition, in terms of channels, JVE can be purchased from non-licensed JVE brands across the country, while the low-cost atomizer products of some electronic atomizer brands are only sold in limited offline channel areas.
After moving offline, electronic atomizer products have added some FMCG characteristics, such as focusing on channels like FMCG. JVE is not my brand authorization point nationwide, which further reduces user access costs.
2. Satisfaction with the health demands of smokers in the sinking market
For the industry, JVE's launch of low-cost atomizer products will have at least two positive impacts. One is to crack down on counterfeit goods, which continuously reduces the living space for generic distribution of counterfeit goods; the other is to stimulate more smokers who sink into the market.# p#pagination title #e#
In fact, companies that take the lead in lowering prices on atomizer products are expected to occupy more markets and find more users among the existing smokers. This actually reflects the social attributes of electronic atomizers as a social consumer good.
With the rise of Short Video live streaming with goods, the consumption power of the sinking market has become increasingly prominent. In the sinking market, many tobacco lovers actually have strong demands for replacing traditional tobacco, but the price of atomizers is not low. The price reduction of brand atomizers does not degrade the quality, which is also to satisfy potential consumer demands in the sinking market from the side, and then allow more people to share the dividends of technological development.
3. Value supply to promote the healthy development of the industry
Judging from the overall development of the industry, although one or two leading companies have emerged from the electronic atomizer track, the market is still large enough to accommodate the rise of new giants. For example, target more vertical crowds, or more subdivided tracks, etc. Electronic atomizer brands such as JVE Non-Me are further developing steadily through differentiated competition.
In addition, how to balance the growth rhythm of channels and products, and how to provide value supply to the industry and society while achieving its own growth are the focus that needs attention.
In fact, the biggest business consciousness of electronic atomizer companies at present is-cautious thinking.
The so-called cautious thinking means that for individual enterprises, they often need to think about products and market competition from an industry perspective. Technically, on the one hand, it is to establish one's own competitive advantages, and on the other hand, it also promotes industry progress.
Behind the launch of JVE's new non-self electronic atomizer policy, this is actually the same thing"Careful thinking": The price reduction of atomizer products not only promotes the development of the company itself, but is also of great benefit to the healthy development of the entire industry.This is precisely the most easily ignored and very important competitive code of conduct in the market competition of the electronic atomizer industry.
