After the explosive growth of vape
During the barbaric growth of vape in the past few years, the vape industry has experienced explosive growth. There are thousands of vape and e-liquid brands newly registered each year. When everyone thinks that the vape industry will soon When the outbreak began, a single announcement made domestic vape companies die. In 2020, at least thousands of vape brands will be cancelled.
Compared with other industries, this kind of sudden outbreak and sudden cooling is rare. I think this is mainly because the vape industry has a wide market, low entry barriers and fast realization characteristics that make many people even if they don’t understand vape. And consulting quickly entered the vape industry, but for many things that may not have been expected, the biggest factor in vape's failure is policy.
People who have just entered the vape industry or are considering entering the vape industry can easily stop losses in time if they encounter unfavorable policies. As a manufacturer with 10 years of professional production of e-liquid, Hengbo Biotechnology Having been working in the vape industry for so many years, we will naturally not withdraw easily. Even we have a foreboding that some policies will come sooner or later. What we have to do is to operate our own enterprises in a reasonable and compliant manner and continue to develop vape. -liquid products, waiting for further clarification of the policy.
Affected by the success of juul, in the second half of 2018, the capital fancy the vape market and inject capital into the vape industry. Many celebrities also said that they are about to enter the vape industry. In the first half of 2019, there are many vape brands that have not been heard before. They have appeared at the vape exhibition. Some so-called vape brands have only semi-finished products displayed, which shows how eager these vape brands are.
This time the rapid ups and downs of the vape market have caused many people to suffer heavy losses. For newcomers, companies can stop their losses in time, but it is difficult for companies that have been operating in the vape industry for many years. For example, many companies only operate vape, e-liquid or other accessory products. Otherwise, it will be difficult to change businesses, and more are waiting for favorable policies to emerge.
Looking at the entire vape market, there are basically few that have developed smoothly. Take juul, the largest brand in the vape market, for example. In 2018, Altria acquired nearly 13 billion U.S. dollars in 2018. With a 35% stake in Juul Labs, the year-end bonus for juul employees in 2019 reached $1.2 million, which really makes other peers envy.
However, even juul is not feeling well now. In 2019, the Trump administration stated that it plans to ban the sale of flavored vape products, and has successively interviewed several leading vape companies. At the same time, the FDA is also developing the safety of vape. According to the investigation, this caused Altria’s stock market value to lose more than 30 billion U.S. dollars, which is almost the entire estimated value of Juul. Juul’s valuation in 2020 is less than 5 billion U.S. dollars, which is only 4.6 billion U.S. dollars, which is equivalent to 2018. 12% of the US$38 billion valuation in December means that Juul's valuation has dropped by 88% in two years, making it the unicorn company with the worst valuation decline.
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