Exporting semi-finished products: a brief analysis of a new vaping production model

E-cigarette products are usually assembled at home and then exported overseas, relying on the strong domestic electronics manufacturing industry, 90% of the world's electronic cigarettes produced in China, not for nothing.

But by the tightening of regulation, market changes and other factors, the electronic cigarette production division of labor appeared a new model, that is, the domestic do semi-finished products, and then exported to the market area to do the final assembly. It is reported that the model is prevalent in Indonesia, but also began to appear in Russia.

Brief analysis of the production process of electronic cigarettes

A complete e-cigarette is mainly three major components, heating components, electronic components, structural components. E-cigarette factory is the three major parts of the material set, assembly and processing.

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• Heat generating component:Heating wire + Cotton / porous ceramics, the type of cotton core, ceramic core two categories, to provide heating atomization function;

• Electronic components: the main Microphone, program boards, batteries, to provide power, switching and other functions;

• Structural components: shell, nozzle, base, seals, etc., to play a role in packaging, support and so on.

Then, the electronic cigarette semi-finished products are mainly  heating components + electronic components, without oil injection, without assembling the shell, in the form of industrial electronic parts and other forms of export.

After exporting the semi-finished products of electronic cigarettes to overseas, we will build a factory in the local area to carry out the second half of processing, mainly  oil injection, shell, bag, box, and so on.

Electronic cigarette semi-finished production mode analysis

According to incomplete research, the electronic cigarette semi-finished production mode from the development of solder foundry, now some of the semi-finished foundry enterprises, the early days is to do the solder foundry of electronic products. There are also some are not licensed factories transformed.

The rise of Indonesia's e-cigarette industry chain has accelerated the molding of e-cigarettes' semi-finished product production mode to a certain extent. There are three reasons, one is the domestic licensing threshold is getting higher and higher, the second is to do assembly exports in Indonesia can avoid the U.S. 20% anti-dumping tax, and the third is that the local supply chain configuration in Indonesia is not mature.

Similarly in Russia, where e-cigarette regulation is being tightened. This series of measures makes exporting e-cigarettes to Russia tougher than ever.

April 1, Russia's "honest labels" officially came into force; April 11, in the plenary session of the State Duma, Russia passed a package of e-cigarette regulatory bills in a series of three readings, including a ban on e-cigarettes flavored additives, a ban on online sales, offline display of e-cigarettes, and increase the minimum price of e-cigarettes.