Is Selling E-Cigarettes Profitable? The Rise of Major Players in China’s Vaping Industry
Is selling e-cigarettes profitable? In the vaping industry, there are many high-profile figures with considerable influence. The first is the chairman of Guangdong Sigelei Electronic Technology Co., Ltd., who also serves as president of the Electronic Cig
Is Selling E-Cigarettes Profitable? There are many well-known and influential figures in the e-cigarette industry. The first is the chairman of Guangdong Sigre Electronic Technology Co., Ltd., who is also the president of the Electronic Cigarette Industry Committee of the China Electronic Commerce Association and an executive director of the association. The second is the chairman of Dongguan Yihai Electronic Technology Co., Ltd., who is the executive vice president of the Electronic Cigarette Industry Committee of the China Electronic Commerce Association and an executive director of the association. The third is the chairman of Aizhuo Group, the chairman of Shenzhen Aizhuo Yi Technology Co., Ltd., and the chairman of Shenzhen Aizhuo Film and Television Co., Ltd., who is also the vice president of the Electronic Cigarette Industry Committee of the China Electronic Commerce Association.
It is worth mentioning that these few e-cigarette bosses share some common characteristics; they are all entrepreneurs born in the 1980s, and both Mr. Ou and Mr. Chen come from technical backgrounds. Behind their success lies an inspiring story—during their entrepreneurial journey, they faced various setbacks and challenges, but they bravely persevered and ultimately achieved success, gaining wealth, honor, and status.
1. Ou Junbiao—A resilient man who rises stronger after setbacks
In his early years, Ou Junbiao left school at a young age to make a living, starting as a factory worker. Adhering to the principle that one must endure hardship to rise above others, he honed his character and rose from a low-level worker to an indispensable core technical engineer in the company.
CEO of Sigre, Ou Junbiao
Dissatisfied with merely being an outstanding engineer, Ou Junbiao decided to venture into entrepreneurship with friends. During the partnership, he was mainly responsible for the company's technical research and development, and the production line quickly became operational. As Ou Junbiao himself said, "I am a proud person and always insist on my ideas." Therefore, whenever the partnership company got on the right track, the "proud" Ou Junbiao would be kicked out by his partners due to disagreements. Similar experiences happened to Ou Junbiao seven times.
Through these seven entrepreneurial partnerships, the lessons and growth Ou Junbiao gained were profound, and he decided to "fly solo." In September 2011, Ou Junbiao began to establish the SIGELEI international e-cigarette brand. Under his leadership, Sigre quickly became established. In November 2016, he established the SIGELEI UK after-sales service center in the UK. In April 2017, the company name was changed from "Dongguan Shenxi Electronic Technology Co., Ltd." to "Guangdong Sigre Electronic Technology Co., Ltd." In August 2017, Guangdong Sigre Electronic Technology Co., Ltd. successfully went public on the New Third Board, stock code: 871818.
2. Chen Zhenjiang—A dedicated man with market sensitivity and clear goals
In 2002, after graduating from university, Chen Zhenjiang entered the sales industry in Dongguan. After three months of trying, he realized it was not suitable for him, so he decided to return to his major in electronic technology, starting from the grassroots level to accumulate experience and hone his skills. To improve his chances of getting hired, he went to the job market every day to gain interview experience, eventually becoming an assistant engineer and starting his technical career. Due to a lack of practical experience, he often worked overtime to learn. After becoming familiar with the business, Chen Zhenjiang switched to another Taiwanese company engaged in audio equipment manufacturing, continuing as an engineer. From 2003 to 2010, he rose from engineer to vice president of R&D, reaching the top of the company.
CEO of Yihai Electronics, Chen Zhenjiang
In 2010, when conditions were ripe, he decided to start a business, leveraging his work experience to enter the audio manufacturing business. Initially, he invested over 1 million yuan, personally handling business operations, making samples, and purchasing equipment. However, the audio industry was already in decline, and Chen Zhenjiang faced setbacks, losing everything after a year. This experience made him deeply realize that innovation is crucial in business, and having the right direction is essential.
By chance, a friend introduced him to e-cigarettes. After conducting market research, he concluded several points: first, e-cigarettes are a substitute for tobacco, relatively environmentally friendly and healthy, and they belong to fast-moving consumer products with good market prospects; second, the e-cigarette industry had not yet formed, and the public had insufficient awareness, leaving ample room for development; finally, the entire tobacco industry's market value is substantial, so there is a large potential market share for e-cigarettes, and capturing even a small portion could lead to significant profits. After thorough analysis, Chen Zhenjiang decided to invest fully.
In the world of e-cigarettes, Chen Zhenjiang found his life's direction and the source of his relentless pursuit. In 2010, he registered Dongguan Yihai Electronics Co., Ltd., starting his entrepreneurial journey once again, which was always challenging in the early stages. He recalls a time when he took a client out for a meal, which cost over 140 yuan, and after paying, he needed to pack the leftover food, but the packing box cost one yuan, and he searched everywhere but found not even a penny. At that time, he had invested all his money in R&D, paying suppliers and workers. Although life was tough, and he was once broke, he believed that as long as his faith remained strong and he was determined, he could overcome difficulties and welcome brighter days.
After just a few years of development, Dongguan Yihai Electronics Co., Ltd. has become a technology company focused on the research, development, production, and sales of electronic chip products, applying them in various high-end devices. 90% of its products are exported to Europe and the United States, leading the trend in the e-cigarette industry. Starting in 2013, he abandoned the supply and R&D of chip technology, transitioning to finished products. He spent a lot of time, money, and effort recruiting talent, building a dedicated team, and developing high-end brands. From 2016 onwards, considering long-term prospects, they completely stopped cooperation with domestic clients. Chen Zhenjiang confidently stated that they are preparing for the next leap to the peak.
3. Wang Xizhi—A stylish man who dares to challenge and be different
Wang Xizhi graduated from the Physical Education and Martial Arts major at the First Normal University. During his studies, he dreamed of becoming a martial arts superstar like Jet Li. Before graduating from university, he spent his savings visiting film studios to watch others shoot martial arts movies. However, after learning about the experiences of many who drifted to the north and south, he realized that times had changed. In 2012, Wang Xizhi established "IJOY" in Los Angeles, USA. In 2013, he founded Shenzhen Aizhuo Yi Technology Co., Ltd., entering the consumer electronics manufacturing field.
CEO of Aizhuo Yi, Wang Xizhi
When IJOY first launched, its products had a fashionable appearance but lacked stability and production capacity; however, it was strong in technological innovation, with highlights that made products worth discussing. Regardless of who your customers are, as long as the fans recognize us, we value them greatly. This point resonated with users!
2016 was the best year for IJOY, achieving remarkable results in its four years since establishment. Facing the full-scale market competition, enterprises need to make more comprehensive and systematic strategic plans for future development, shifting from an "opportunity-oriented" approach to a fundamental change in "systematic management capabilities" for comprehensive market competition! At the most optimistic time, I was filled with a strong sense of crisis, understanding that to become a leader in the e-cigarette industry, both atomizers and boxes must walk on two legs! Therefore, we invested tens of millions in enhancing PCB solutions, box and ID development, and strengthening comprehensive capabilities in talent, systems, marketing, production capacity, and quality control!
In fact, before entering the e-cigarette industry, Wang Xizhi had little understanding of e-cigarette products and was completely an outsider, but this did not affect his judgment and determination. As he said, IJOY's success today is thanks to my outsider status, "a blind punch can defeat a skilled master." Outsiders do not have fixed mindsets and do not harbor awe. While others in the e-cigarette industry have been doing it for three years, believing it should be done this way and making money, I knew nothing. However, when you approach problems from an outsider's perspective, you may find different innovations. Because of our ignorance and fearlessness, we chose a point, concentrated our strengths, and broke through at a single point, winning big!
In the e-cigarette industry, there are many entrepreneurial bosses born in the 1980s, some from technical backgrounds, others from foreign trade (sales), and many are outsiders or returnees, and many of them are doing quite well, all of whom are worth learning from!
It is worth mentioning that these few e-cigarette bosses share some common characteristics; they are all entrepreneurs born in the 1980s, and both Mr. Ou and Mr. Chen come from technical backgrounds. Behind their success lies an inspiring story—during their entrepreneurial journey, they faced various setbacks and challenges, but they bravely persevered and ultimately achieved success, gaining wealth, honor, and status.
1. Ou Junbiao—A resilient man who rises stronger after setbacks
In his early years, Ou Junbiao left school at a young age to make a living, starting as a factory worker. Adhering to the principle that one must endure hardship to rise above others, he honed his character and rose from a low-level worker to an indispensable core technical engineer in the company.
CEO of Sigre, Ou Junbiao
Dissatisfied with merely being an outstanding engineer, Ou Junbiao decided to venture into entrepreneurship with friends. During the partnership, he was mainly responsible for the company's technical research and development, and the production line quickly became operational. As Ou Junbiao himself said, "I am a proud person and always insist on my ideas." Therefore, whenever the partnership company got on the right track, the "proud" Ou Junbiao would be kicked out by his partners due to disagreements. Similar experiences happened to Ou Junbiao seven times.
Through these seven entrepreneurial partnerships, the lessons and growth Ou Junbiao gained were profound, and he decided to "fly solo." In September 2011, Ou Junbiao began to establish the SIGELEI international e-cigarette brand. Under his leadership, Sigre quickly became established. In November 2016, he established the SIGELEI UK after-sales service center in the UK. In April 2017, the company name was changed from "Dongguan Shenxi Electronic Technology Co., Ltd." to "Guangdong Sigre Electronic Technology Co., Ltd." In August 2017, Guangdong Sigre Electronic Technology Co., Ltd. successfully went public on the New Third Board, stock code: 871818.
2. Chen Zhenjiang—A dedicated man with market sensitivity and clear goals
In 2002, after graduating from university, Chen Zhenjiang entered the sales industry in Dongguan. After three months of trying, he realized it was not suitable for him, so he decided to return to his major in electronic technology, starting from the grassroots level to accumulate experience and hone his skills. To improve his chances of getting hired, he went to the job market every day to gain interview experience, eventually becoming an assistant engineer and starting his technical career. Due to a lack of practical experience, he often worked overtime to learn. After becoming familiar with the business, Chen Zhenjiang switched to another Taiwanese company engaged in audio equipment manufacturing, continuing as an engineer. From 2003 to 2010, he rose from engineer to vice president of R&D, reaching the top of the company.
CEO of Yihai Electronics, Chen Zhenjiang
In 2010, when conditions were ripe, he decided to start a business, leveraging his work experience to enter the audio manufacturing business. Initially, he invested over 1 million yuan, personally handling business operations, making samples, and purchasing equipment. However, the audio industry was already in decline, and Chen Zhenjiang faced setbacks, losing everything after a year. This experience made him deeply realize that innovation is crucial in business, and having the right direction is essential.
By chance, a friend introduced him to e-cigarettes. After conducting market research, he concluded several points: first, e-cigarettes are a substitute for tobacco, relatively environmentally friendly and healthy, and they belong to fast-moving consumer products with good market prospects; second, the e-cigarette industry had not yet formed, and the public had insufficient awareness, leaving ample room for development; finally, the entire tobacco industry's market value is substantial, so there is a large potential market share for e-cigarettes, and capturing even a small portion could lead to significant profits. After thorough analysis, Chen Zhenjiang decided to invest fully.
In the world of e-cigarettes, Chen Zhenjiang found his life's direction and the source of his relentless pursuit. In 2010, he registered Dongguan Yihai Electronics Co., Ltd., starting his entrepreneurial journey once again, which was always challenging in the early stages. He recalls a time when he took a client out for a meal, which cost over 140 yuan, and after paying, he needed to pack the leftover food, but the packing box cost one yuan, and he searched everywhere but found not even a penny. At that time, he had invested all his money in R&D, paying suppliers and workers. Although life was tough, and he was once broke, he believed that as long as his faith remained strong and he was determined, he could overcome difficulties and welcome brighter days.
After just a few years of development, Dongguan Yihai Electronics Co., Ltd. has become a technology company focused on the research, development, production, and sales of electronic chip products, applying them in various high-end devices. 90% of its products are exported to Europe and the United States, leading the trend in the e-cigarette industry. Starting in 2013, he abandoned the supply and R&D of chip technology, transitioning to finished products. He spent a lot of time, money, and effort recruiting talent, building a dedicated team, and developing high-end brands. From 2016 onwards, considering long-term prospects, they completely stopped cooperation with domestic clients. Chen Zhenjiang confidently stated that they are preparing for the next leap to the peak.
3. Wang Xizhi—A stylish man who dares to challenge and be different
Wang Xizhi graduated from the Physical Education and Martial Arts major at the First Normal University. During his studies, he dreamed of becoming a martial arts superstar like Jet Li. Before graduating from university, he spent his savings visiting film studios to watch others shoot martial arts movies. However, after learning about the experiences of many who drifted to the north and south, he realized that times had changed. In 2012, Wang Xizhi established "IJOY" in Los Angeles, USA. In 2013, he founded Shenzhen Aizhuo Yi Technology Co., Ltd., entering the consumer electronics manufacturing field.
CEO of Aizhuo Yi, Wang Xizhi
When IJOY first launched, its products had a fashionable appearance but lacked stability and production capacity; however, it was strong in technological innovation, with highlights that made products worth discussing. Regardless of who your customers are, as long as the fans recognize us, we value them greatly. This point resonated with users!
2016 was the best year for IJOY, achieving remarkable results in its four years since establishment. Facing the full-scale market competition, enterprises need to make more comprehensive and systematic strategic plans for future development, shifting from an "opportunity-oriented" approach to a fundamental change in "systematic management capabilities" for comprehensive market competition! At the most optimistic time, I was filled with a strong sense of crisis, understanding that to become a leader in the e-cigarette industry, both atomizers and boxes must walk on two legs! Therefore, we invested tens of millions in enhancing PCB solutions, box and ID development, and strengthening comprehensive capabilities in talent, systems, marketing, production capacity, and quality control!
In fact, before entering the e-cigarette industry, Wang Xizhi had little understanding of e-cigarette products and was completely an outsider, but this did not affect his judgment and determination. As he said, IJOY's success today is thanks to my outsider status, "a blind punch can defeat a skilled master." Outsiders do not have fixed mindsets and do not harbor awe. While others in the e-cigarette industry have been doing it for three years, believing it should be done this way and making money, I knew nothing. However, when you approach problems from an outsider's perspective, you may find different innovations. Because of our ignorance and fearlessness, we chose a point, concentrated our strengths, and broke through at a single point, winning big!
In the e-cigarette industry, there are many entrepreneurial bosses born in the 1980s, some from technical backgrounds, others from foreign trade (sales), and many are outsiders or returnees, and many of them are doing quite well, all of whom are worth learning from!
