A Wave of Shenzhen Vaping Manufacturers Are Renewing Licenses in August — Time to Move on the Market

Today, it was reported that with the start of the license renewal in August, a large number of manufacturers and brands are entering the renewal cycle. Notably, major manufacturers such as Xingke Electronics and Geekvape, along with well-known brands like Pod, Mirai, Laimi, and Benwu, are all renewing their licenses, indicating that the industry is entering a new cycle.

However, having a license does not mean survival.

In the future global e-cigarette market, you must continuously explore new channels, acquire new customers, and diversify product categories, while breaking down targets for your team and finding better pathways to market. Moreover, when you see market opportunities in other regions, you should rush in without hesitation; you need to seize the moment.

01

A large number of Shenzhen companies are renewing licenses, and order demand is coming back!

On August 15, one of the largest OEM factories, Xingke Electronics, also announced its license renewal. This company is a subsidiary of the publicly traded Jinlong Electromechanical, which previously stated that it secured over 900 million in orders within just three months last year, primarily providing production for electronic vaping devices and related accessories. They stated, "Our wholly-owned subsidiary, Xingke Electronics (Dongguan) Co., Ltd. (referred to as Xingke Electronics), received the tobacco monopoly production enterprise license (for electronic cigarette OEM) from the National Tobacco Monopoly Bureau on August 15, 2023, with the license valid until July 31, 2025."

(Major factory Xingke Electronics announced its license renewal in August)

Moreover, companies whose licenses are expiring in September have already been notified to hold meetings.

So, as of today, which factories have renewed their licenses?

Preliminary statistics show that over 40 companies have already renewed their licenses (including nearly 20 manufacturing companies). However, due to incomplete statistics, it is estimated that at least 100 companies have successfully renewed their licenses. Notably, those renewing in July have mostly been notified to collect their licenses in recent days.

What is noteworthy is that some of the renewing companies are quite representative and characteristic. Many are manufacturers from Shenzhen and Dongguan. Apart from e-liquids and nicotine, they primarily focus on OEM production.

The list includes Pod Shenzhen Technology (brand), Laimi Vaping Technology (brand), Zhejiang Mirai Electronics (brand), and many manufacturers such as Shenzhen Geekvape Technology (production), Xingke Electronics Dongguan, Shenzhen Kali Technology (production), Dongguan Yizhidong Technology, Dongguan Kangxun Technology (production), Shenzhen Haohan Yangtian Technology (production), Shenzhen Aipusi Biotechnology (vaping materials), Bodi Technology (production), Dongguan Haoyuan Electronics (production), Huizhou Tianchang Industry (production), Boxiang Technology (production), Shenzhen Luyuan Technology (production), Shenzhen Chengyu Technology (production), Shenzhen Yunpu Xinghe (production), Jinjia, Shenzhen Ruixiangyuan Biotechnology (vaping materials), and Shenghai Electronics have all successfully renewed their licenses. (If your company is not on the list, please submit it to us for inclusion in the next report).

(Preliminary statistics of the license renewal list)

For instance, Xingke Electronics is a major factory for disposable OEMs, receiving a large volume of orders annually. From the scope of the license, it includes the production and OEM of pods, vaping devices, and combinations for export.

Geekvape Technology is also a large-scale factory, with a new base being constructed in Zhuhai. Overseas, the GEEK VAPE brand is also prominently featured across major channels and exhibitions.

Additionally, the highly technical Bodi Technology announced its license renewal on August 4, successfully obtaining a new license.

(Bodi has also renewed its license)

Shenzhen Haohan Yangtian Technology, which just renewed its license, is invested by Jiayao Holdings and has successfully contributed to Jiayao's performance this year. Moreover, in the first half of this year, its e-cigarette business accounted for over 20% of Jiayao's revenue, generating revenue of 217 million RMB, equivalent to 217 million in half a year.

Furthermore, Huizhou Tianchang Industry, established in 1996, is a long-standing manufacturing enterprise. #p#分页标题#e#

Additionally, Dongguan Haoyuan Electronics, Chengyu Technology, Feimo Technology, and Yunpu Xinghe Technology under Jinjia have all announced their license renewals. These companies, apart from manufacturing, mostly have their own brands and are deepening their expansion into overseas markets.

I have previously asked some factories, and they indicated, "We are due for renewal at the end of August and will obtain our licenses next month." This indicates that a batch of companies due for renewal at the end of August is also busy with their renewals.

Some companies have also stated that they will focus on some untapped markets in the second half of the year.

Regarding production licenses, last year, approximately 612 companies obtained licenses, with over 400 in Shenzhen. According to statistics, Dongguan still has 309 companies without licenses, and Shenzhen also has over 400. According to a set of data released by the Shenzhen Industry and Information Technology Bureau in November last year, there are currently 845 e-cigarette manufacturing companies in Shenzhen, accounting for 68% of the national total; 428 have obtained licenses, accounting for 73.5%. Among them, 119 are above designated size, with 94 having obtained licenses. This indicates that Shenzhen accounts for nearly 70% of the country's manufacturing enterprises.

02

Brands are also experiencing a “renewal wave.”

Pod, Benwu, and Laimi have all renewed their licenses.

Especially with well-known brands like Pod and Benwu renewing their licenses, it indicates that licensed brands will continue to expand their markets in the future.

So far, six brands have obtained licenses, including Pod Shenzhen Technology (brand), Laimi Vaping Technology (brand), Zhejiang Mirai Electronics (brand), Yiguangnian Technology, Benwu Technology, and Shenzhen Weika Technology. Some of these brands focus on the domestic market, while others have a focus on overseas markets.

(Pod has renewed its license)

The ability to continue renewing licenses represents a certain capability.

Recently, I have learned that some companies without licenses are also striving to obtain new licenses. However, this may take until after October. Companies without licenses may also consider relocating their factories overseas to continue operations.

Regardless, license renewal will have a positive significance for companies.

With the increasing competition in overseas markets, acquiring customers or developing channels, even "new channels" are strategies that many companies face. If new channels are not developed, future markets will become increasingly competitive, making it more difficult to open up markets. Some company leaders have clearly stated, "This industry will become increasingly concentrated, and the difficulty will also increase."

License renewal signifies that the industry continues to maintain vitality, and this renewal is for two years. Does this mean that the next two years will be an important new cycle for overseas expansion?

Especially in the face of fierce competition overseas, when finding orders becomes more challenging, a suggestion is to find ways to sell to more customers and better customers. For example, the market has not been fully explored; if you do not dig deep, how can you say that business cannot grow? Here, I want to remind you of the concept of "economies of scope," which is to expand the radius of customer acquisition and not be limited to the "small plot of land" in front of you. In the face of fierce market competition, this is a good opportunity for companies to grow.

(A new cycle of overseas expansion is coming)

In summary, a new cycle of overseas expansion has already begun! Companies renewing their licenses need to continue strategizing for development over the next two years and push for deeper overseas expansion!