Key points: On April 17, information from the national unified e-cigarette trading management platform showed that multiple national-standard products from RELX and MOTI began wholesale price cuts today, but many store owners reported limited availability
On April 17, news reports from the national unified e-cigarette trading management platform indicate that several products from the RELX and MOTI brands have begun to lower their wholesale prices, but many store owners have reported that multiple SKUs show out of stock after the price drop.
The national standard price reduction information was announced on the trading platform months ago, and the brands effective today include eight products from RELX and one device from MOTI.
This is also the first official platform price reduction after the electronic cigarette consumption tax was imposed on November 1, 2022.
RELX price reduction products:- Phantom Forgetting Jiang Youjing Mountain Roasted Pods, Phantom Forest Revival Mountain Roasted Pods, Phantom Clear Joy Human World Mountain Roasted Pods;
- Phantom Pods Power Edition Red Fortune Rolling Rock Roasted, Phantom Pods Power Edition Xiangyin Color Cloud Stream;
- Green Feather Pods Forest Revival Mountain Roasted, Green Feather Pods Forgetting Jiang Youjing Mountain Roasted, Green Feather Pods Xiangyin Color Cloud.
MOTI price reduction product: MOTI S Device - California Dream. | | Wholesale Price Reduction
| Suggested Retail Price Reduction |
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| Phantom Power Edition Pods
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| MOTI S Device - California Dream | | |
Calculating the reductions, RELX Phantom and Power Pods have reductions of about 15%, while Green Feather Pods have reductions of around 12%. MOTI devices have reductions of about 26%.
Currently, the price announcement area includes products from other brands, but the effective dates will be on May 3, 7, and 14.Brands with price reductions effective on May 3: three MOTI Pods, Fengyun Xiaoyan, Xianyun Xiaoyan, and Original Aroma Xiaoyan.Brands with price reductions effective on May 7: YOOZ three products, UNI-single device, ZROW-single device, UNIUnicorn-Pure Clear Stream - 2-pack.Brands with price reductions effective on May 14: MR Mi Rui four Pods, Cloud Rising Splendid Sky, Cloud Rising Baron, Glory Fragrance, Glory South Wind.According to information from the trading platform, the price adjustment information has been completed, and the new wholesale prices for store owners will take effect today, but some store owners have reported that the already reduced RELX products show as out of stock.On October 25, 2022, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation jointly issued a notice on the imposition of consumption tax on e-cigarettes, bringing e-cigarettes into the scope of consumption tax collection and adding a sub-item for e-cigarettes under the tobacco tax category. E-cigarettes are taxed based on value, with a tax rate of 36% at the production (import) stage and 11% at the wholesale stage.On November 1, 2022, the e-cigarette consumption tax was officially implemented, and the national unified e-cigarette trading management platform officially updated the tax-inclusive wholesale prices and suggested retail prices for national standard products. E-cigarettes officially entered the same tax category as cigarettes.Blue Hole's Commentary: Compared to price reductions, store owners are more concerned about adjustments to national standard flavors.The reduction in national standard wholesale prices will allow store owners to have more flexibility in retail pricing, as long as it does not fall below the platform's suggested retail price.
However, compared to the national standard price reduction, store owners are more concerned about whether the national standard flavors will be adjusted in the second half of this year, at least according to the 101 additive whitelist stipulated by the e-cigarette national standard, such as whether cooling agents can be added.Blue Hole previously conducted a survey of e-cigarette store owners in March, showing that 48% were losing money, 41% had sales below 5000, and 48% still wanted to renew their licenses. The sales situation of national standards remains grim.From the feedback from brands, most national standard brands have already laid low in the domestic market. Blue Hole recently visited several licensed e-cigarette brand companies in Shenzhen, and the situation is not optimistic, with most expressing frustration, either lying low domestically or attempting to go overseas.Many brands have chosen to downsize due to a lack of store owner purchases, with only a few remaining to maintain daily operations, waiting for opportunities that are unlikely to improve.Additionally, some store owners have reported that although there is currently a crackdown on illegal e-cigarettes, fruit-flavored e-cigarettes still exist in social circles, and there has even been a recent resurgence.Licensed e-cigarette store owners are the most affected.On one hand, national standard flavors affect user repurchase, and on the other hand, illegal fruit-flavored e-cigarettes have not been eradicated. It is hoped that the already reduced products can help store owners maintain user repurchase better.
