A Dual-Engine Era for Leading Vaping Companies? Over RMB 4 Billion from the B2B Market in Half a Yea

What is the current state of the e-cigarette industry after half a year?

Regardless of whether one agrees, the industry has entered a "dual-engine era." The B2B market continues to deepen, while retail aimed at the C market is also on a growth curve.

For instance, in the first half of this year, Smoore generated over 4 billion RMB from the B market, with over 2 billion coming from the U.S., maintaining a year-on-year growth of 27.7%; its retail revenue from the C market exceeded 600 million RMB, with significant retail growth in both Europe and the U.S. Another company, Scoil, reported over 1.4 billion RMB in revenue for the first half of the year, a staggering increase of 1477.33%. Looking at Fogcore Technology, it had a revenue of 567 million RMB, with a net profit of 148 million RMB, compared to last year's revenue of 3.948 billion RMB and net profit of 1.129 billion RMB, indicating a clear period of growing pains.

(What kind of state has the industry entered?)

It can be said that in the first half of this year, the e-cigarette industry is still in a period of growing pains, but it also shows some emerging trends. For example, the growth in overseas markets, market share in Europe and the U.S., and the development of markets in the Middle East, Africa, and South America.

This stage tests the risk resistance capabilities of companies primarily focused on the B market, with technological reserves and their own industrial chains.

Data shows that Smoore, with a revenue of 5.1 billion RMB in half a year, had sales to enterprise customers amounting to 4.474 billion RMB, with sales in the U.S. at 2.06 billion RMB and sales in mainland China at 62.087 million RMB, while retail sales reached 649 million RMB. Particularly in retail, sales in the U.S. amounted to 155 million RMB, a year-on-year increase of 16.7%, while sales in Europe and other regions reached 494 million RMB, a year-on-year increase of 15.5%.

(Declining OEM, retail growth?)

It is evident that the current e-cigarette industry is largely focused on international markets. The question is, how many companies have shown performance growth during this process?

It can also be seen that after multiple adjustments, the industry's prosperity is expected to rebound, and many companies are exploring diverse paths, such as not being limited to atomized e-cigarettes, but also CBD, HNB, atomized medical products, nicotine pouches, bottled e-liquids, and more.

However, it is also observed that e-cigarettes will eventually replace traditional cigarettes as mainstream products, and the current market fluctuations also indicate potential for future rebounds. Whether it can emerge from the trough and better influence a broader global consumer base, impacting the larger B channel market, and encouraging more global retail agents to prefer purchasing e-cigarettes will be an evolutionary process!

The author has previously discussed with some industry insiders, who stated, "Disposable products are just a market cultivation decision; the second wave of the industry has passed, and we are still waiting for the third wave of technological innovation." Adapting to market decisions will be an important trend for Chinese companies going overseas in the future!

What exactly is this third wave? Is it product form innovation driven by technology? Is it an era of brand competition? One thing is certain: the third wave will be a "dual-engine era," where companies with their own industrial chains will have stronger risk resistance capabilities and a more robust "channel chain," which will be crucial!!