The vape competition belongs to the giants
The vape industry is on the rise again. The vape is a kind of imitating cigarette electronic product that is similar to smoking behavior in physiological and physical habits after turning e-liquid into steam through means such as atomization and heating. Compared with the harmfulness of traditional tobacco, vape is considered to be a relatively healthy and environmentally friendly alternative to traditional tobacco. It has less impact on the health of smokers and on others.
According to relevant industry data, the current global vape market has increased from US$12.4 billion in 2014 to US$36.7 billion in 2019, with an average annual compound growth rate of 24.2%, and it will reach US$82 billion by 2023. In 2014, the Chinese vape market was only 700 million U.S. dollars. By 2019, the domestic vape market has increased to 2.7 billion U.S. dollars, and the five-year compound annual growth rate has reached 30.99%. It can be seen that China’s vape The scale of cigarette is expanding rapidly.
The competition among vape giants also performs their duties. With the explosion of the vape industry, the competition among various vape brands is also intensifying. At present, in the domestic vape market, there are two main types of active brands. One is foreign brands and the other is domestic brands. Domestic brands can be divided into vape startups and traditional manufacturing cross-industry giants. The vape brands with a relatively high market share are all vape startup companies, while the traditional manufacturing giants are basically at the vape processing level. It can be said that the competition of the giants has not appeared chaotic.
From the perspective of the industrial chain, the vape industry can be divided into the vape brand and the vape brand. As vape turns to small cigarettes, e-liquid has become a vassal product of vape. e-liquid basically exists in the tank attached to the vape. Basically, the popular e-liquid on the market is aimed at players or users who want to save costs, so the e-liquid brand has gradually lost the vape industry brand competition.
The main reason why vape giants become the protagonist of the market competition is because of policy. As the vape policy becomes more and more strict, the entire vape industry is also facing a new reshuffle. As early as November 2019, relevant departments jointly issued the "Notice on Prohibition of Selling Vape to Minors", clarifying that no market entity may sell vape to minors; October 2020, new revision The Law on the Protection of Minors once again clarified that it is illegal for anyone or any market entity to sell vapes to minors.
The introduction of these measures has further clarified the management policies of the vape industry, and also cut off the vape online sales channels. At present, vape products are no longer available on mainstream online platforms. This will undoubtedly have a great impact on many start-up vape brands. After all, the high gross profit and low threshold of the vape industry in the past, coupled with the cost advantages of online channels, have enabled many start-ups to live well.
Nowadays, with the closure of online channels, many small players can only be cleared out. The remaining players either have strong product development capabilities or have abundant offline store resources. It is the fate of many vape entrepreneurs. In addition, there is currently no high tax on vape in China, but with the introduction of the vape national standard, the regulation and taxation of the vape industry will keep up in time. By then, the high gross profit of vape will inevitably be Will be affected. In fact, the profits of many vape giants have begun to decline significantly in recent years. If high taxes come, the price difference between small brands and big brands will not be too obvious, and the channels and profits of sub-brands will be further compressed, losing the qualification to compete with top brands, or even directly losing all of them. market.
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