Key takeaway: On April 13, shortly after the Qingming holiday, China’s e-cigarette industry entered a new wave of exits. Business registry data shows that multiple domestic e-cigarette companies have recently removed e-cigarette operations from their busi
On April 13, news broke that just after the Qingming Festival holiday, the domestic electronic cigarette industry is entering a farewell season. According to Qichacha, many domestic electronic cigarette companies have recently removed electronic cigarettes from their business scope, indicating that these companies are officially bidding farewell to electronic cigarettes.The first to say goodbye is Longwu, whose operating company officially removed the research, production, and sales of electronic cigarettes on April 12, but the new business scope includes the research, production, and sales of atomizers.Longwu gippro, founded in 2017, focuses on the research and development of atomization technology and heat-not-burn technology, with products including various types of electronic atomization devices, heat-not-burn devices, non-tobacco consumables, and diversified CBD products. It has received investments totaling tens of millions from Tongchuang Weiye, Jinjia Technology, and Meirui Health International.Conbat is a company that produces low-temperature heat-not-burn tobacco products, which are currently prohibited in China but can be operated overseas.Vita completed its business change today, removing electronic cigarette operations and adding betel nut processing. Vita was established in 2015 and VITAVP was once a well-known electronic cigarette brand in China, having received investment from Wang Sicong's Pusi Capital.According to the "Electronic Cigarette Management Measures", companies without an electronic cigarette production license cannot continue to operate electronic cigarette businesses. According to public data, there are currently about 700 electronic cigarette companies nationwide that have obtained production licenses, of which 46 electronic cigarette brands have obtained licensed permits.If a company does not have an electronic cigarette production license, it can either cancel its business or remove electronic cigarettes from its business scope. The aforementioned companies have chosen to remove.In two days, three electronic cigarette companies have announced changes to their business scope, ushering in a wave of farewells, mainly because similar companies received regulatory reminder letters from the tobacco monopoly bureau.
According to the regulatory reminder letter, electronic cigarette businesses have now become pre-approval businesses, and those without production licenses cannot engage in related businesses.Vita's CEO Liu Dongyuan told Landong that the change in business scope is a requirement from the regulatory authorities, and the electronic cigarette business scope has been changed to pre-approval, so it is necessary to remove this business scope first. After obtaining the license, it can be added back.Unlicensed electronic cigarette brands include Fei Wo, Vita, Longwu, Fu Lu, and Fu Gou, and it is expected that there will be a concentrated change in business scope soon, temporarily bidding farewell to the domestic electronic cigarette market. Currently, the companies bidding farewell mainly belong to those that have not obtained electronic cigarette production licenses. Licensed electronic cigarette companies have not publicly announced farewells yet, but it is expected to happen soon.Last month, Landong conducted brand visits in Shenzhen, showing that most licensed electronic cigarette companies are in a state of inactivity, with personnel scales significantly reduced, retaining only the most essential elements for daily operations. Many companies have transferred personnel to overseas markets, while the domestic market remains in a state of inactivity and observation.A domestic top three electronic cigarette brand is expected to report first-quarter sales data that is only 30% of last year's fourth-quarter figures.What? Last year's fourth quarter was already the industry's lowest point?Not really; the industry's trough has not yet reached the bottom.This recent wave of farewells is not the end but just the beginning.Looking back three years, you will find that brands that exited due to online sales bans are now alternative "winners", minimizing losses and stopping damage in time.So, from this perspective, is leaving the industry now less of a loss than for licensed brands?It's a tough call, but it’s a reality check. Anyway, people leave their names, and geese leave their voices; thanks to the companies that have already said goodbye and those that will soon bid farewell, you have left your mark in the history of the electronic cigarette industry.After drinking the Meng Po soup, crossing the Naihe Bridge.Though a drop in the ocean, I wish you all a bright future in your new reincarnation.
According to the regulatory reminder letter, electronic cigarette businesses have now become pre-approval businesses, and those without production licenses cannot engage in related businesses.
