Can the e-cigarette industry last long?
Can the e-cigarette industry last long? What e-cigarettes emit is not smoke but vapor. Because artificial nicotine is added to synthetic oil, a hit on the inhale produces a throat hit that satisfies smokers. It is a device used by smokers to relieve nicot
Can the e-cigarette industry last long? The vapor produced by e-cigarettes is not smoke but steam. With the addition of synthetic nicotine in the e-liquid, a single puff creates a throat hit, satisfying smokers' cravings. This is a gadget used by smokers to relieve their nicotine addiction, and the e-cigarette market has matured significantly abroad.
Due to the absence of tar, e-cigarettes do not pollute indoor air, making them a prime alternative to traditional cigarettes.
In January 2019, Canaan Creative held its annual meeting.
Canaan Creative is a manufacturer of cryptocurrency mining machines, and at this time last year, when Bitcoin was soaring, the company was shining brightly.
However, looking at the current state of Bitcoin and blockchain technology, it’s clear that even mining machine giants are facing tough times. Just a few days ago, there were talks of Bitcoin needing to expand, but as mining volume increased, the price naturally dropped. Moreover, there are not many naive investors left in this field, so the mining machine business is not as prosperous as before.
Nevertheless, there were still gifts at the annual meeting. Some attendees shared pictures on social media: "No gifts for the New Year, just giving out Whale e-cigarettes"—referring to a product called "Wel Whale Light Smoke."
The appearance of e-cigarette products at a blockchain company's annual meeting seems unrelated, yet there are coincidences between these two seemingly disparate entities.
According to "Deep Chain Finance," the company behind Whale Light Smoke is Hangzhou Whale Smoke Network Technology Co., Ltd. Tianyancha information shows that the company was registered on January 11, 2019, and has completed tens of millions in Pre-A financing, with the major shareholder and legal representative being Kong Jianping.
Interestingly, the co-chairman of Canaan Creative is also named Kong Jianping. Reports indicate that the controlling entity behind Whale Light Smoke is indeed the executive team of Canaan Creative.
This claim was later denied by Canaan Creative's executives. "Whale Light Smoke is an investment made by Canaan Creative's shareholders themselves and has no relation to Canaan Creative."
The former blockchain hardware giant's foray into the e-cigarette market sounds dubious, regardless of its truth. The e-cigarette market is evident—data shows that from $416 million in 2010 to $7.1 billion in 2016, the e-cigarette market expanded 17 times in six years, with a compound annual growth rate of 60.5%.
However, the booming foreign market does not necessarily mean the domestic market will follow suit. In 2016, the consumption scale of the e-cigarette market was only 3.2 billion yuan, while the total sales revenue of the cigarette industry in 2016 was 1.3706 trillion yuan, meaning that the current Chinese e-cigarette market only accounts for 0.23% of the tobacco industry.
Just as this industry was about to cool down domestically, the market suddenly opened up.
From 2008 to 2010, the e-cigarette market was still in its nurturing phase, with fewer than 10 companies in the industry. However, around 2012, as the market in Europe and America began to rise, domestic OEM companies rapidly increased, reaching over a hundred at one point. At this time, 90% of the world's e-cigarettes came from Shenzhen, a burgeoning city in China.
As the future just opened its doors, clouds of uncertainty also arrived with the wind. By the second half of 2017, some countries and cities abroad began to cut back on e-cigarette production plans due to restrictions from the FDA (U.S. Food and Drug Administration). However, not all reductions were due to regulation. For example, the Irish company Healthier Smoker terminated plans to invest millions of euros in e-cigarette production and closed its e-cigarette factory.
The reason for the closure was that the e-liquids produced by this e-cigarette company infringed on the intellectual property rights of several internationally renowned cigarette brands owned by Japan Tobacco.
Thus, the overall environment for e-cigarettes has never stabilized. Additionally, although the domestic market for e-cigarettes has been cultivated for many years, Chinese smokers still tend to resist this new phenomenon. Data shows that by 2017, there were 35 million e-cigarette users globally, while China only had 500,000 e-cigarette users.
Can the e-cigarette industry last long? From an industrial perspective, domestic e-cigarettes, under the spotlight of hot money, are closer to profit than ever. One reason for this is the low entry barrier and quick return on investment.
Due to the absence of tar, e-cigarettes do not pollute indoor air, making them a prime alternative to traditional cigarettes.
In January 2019, Canaan Creative held its annual meeting.
Canaan Creative is a manufacturer of cryptocurrency mining machines, and at this time last year, when Bitcoin was soaring, the company was shining brightly.
However, looking at the current state of Bitcoin and blockchain technology, it’s clear that even mining machine giants are facing tough times. Just a few days ago, there were talks of Bitcoin needing to expand, but as mining volume increased, the price naturally dropped. Moreover, there are not many naive investors left in this field, so the mining machine business is not as prosperous as before.
Nevertheless, there were still gifts at the annual meeting. Some attendees shared pictures on social media: "No gifts for the New Year, just giving out Whale e-cigarettes"—referring to a product called "Wel Whale Light Smoke."
The appearance of e-cigarette products at a blockchain company's annual meeting seems unrelated, yet there are coincidences between these two seemingly disparate entities.
According to "Deep Chain Finance," the company behind Whale Light Smoke is Hangzhou Whale Smoke Network Technology Co., Ltd. Tianyancha information shows that the company was registered on January 11, 2019, and has completed tens of millions in Pre-A financing, with the major shareholder and legal representative being Kong Jianping.
Interestingly, the co-chairman of Canaan Creative is also named Kong Jianping. Reports indicate that the controlling entity behind Whale Light Smoke is indeed the executive team of Canaan Creative.
This claim was later denied by Canaan Creative's executives. "Whale Light Smoke is an investment made by Canaan Creative's shareholders themselves and has no relation to Canaan Creative."
The former blockchain hardware giant's foray into the e-cigarette market sounds dubious, regardless of its truth. The e-cigarette market is evident—data shows that from $416 million in 2010 to $7.1 billion in 2016, the e-cigarette market expanded 17 times in six years, with a compound annual growth rate of 60.5%.
However, the booming foreign market does not necessarily mean the domestic market will follow suit. In 2016, the consumption scale of the e-cigarette market was only 3.2 billion yuan, while the total sales revenue of the cigarette industry in 2016 was 1.3706 trillion yuan, meaning that the current Chinese e-cigarette market only accounts for 0.23% of the tobacco industry.
Just as this industry was about to cool down domestically, the market suddenly opened up.
From 2008 to 2010, the e-cigarette market was still in its nurturing phase, with fewer than 10 companies in the industry. However, around 2012, as the market in Europe and America began to rise, domestic OEM companies rapidly increased, reaching over a hundred at one point. At this time, 90% of the world's e-cigarettes came from Shenzhen, a burgeoning city in China.
As the future just opened its doors, clouds of uncertainty also arrived with the wind. By the second half of 2017, some countries and cities abroad began to cut back on e-cigarette production plans due to restrictions from the FDA (U.S. Food and Drug Administration). However, not all reductions were due to regulation. For example, the Irish company Healthier Smoker terminated plans to invest millions of euros in e-cigarette production and closed its e-cigarette factory.
The reason for the closure was that the e-liquids produced by this e-cigarette company infringed on the intellectual property rights of several internationally renowned cigarette brands owned by Japan Tobacco.
Thus, the overall environment for e-cigarettes has never stabilized. Additionally, although the domestic market for e-cigarettes has been cultivated for many years, Chinese smokers still tend to resist this new phenomenon. Data shows that by 2017, there were 35 million e-cigarette users globally, while China only had 500,000 e-cigarette users.
Can the e-cigarette industry last long? From an industrial perspective, domestic e-cigarettes, under the spotlight of hot money, are closer to profit than ever. One reason for this is the low entry barrier and quick return on investment.
