vape businesses expect to be formalized
What products are suitable for making money in the long run? It is undoubtedly a fast-moving consumer product, and the ideal product in the fast-moving consumer product is a product that can cause concealment. The vape product is such a product. Although vape is a substitute for cigarettes, it has a good smoking cessation effect. However, vape still has certain hidden potential. An vape cartridge probably only contains 2ML of e-liquid, but this 2ML of e-liquid brings users the satisfaction that can only be brought by 4-5 packs of cigarettes. Portability and a variety of flavors make vapes popular among users. The popularity of vape soon ushered in government supervision. First, online sales were banned, and later, vape was included in the scope of tobacco control. In order to survive the subsequent supervision, many vape companies Hope that they can be formalized to obtain legal and unimpeded production and sales channels.
The vape was born in China in 2019. The vape exported from China accounts for 90% of the global market, but the vape has indeed spread from abroad to China. Even now, the domestic vape penetration rate is still lower than that of foreign countries. There are many, so the control of vape in China is also far behind other countries. The real control of vape in China is to ban the sale of vape online, but what kind of vape belongs to is vape -cigarette products are still tobacco products, or belong to drugs. It will not be clear until 2021. In 2021, vape will be officially included in tobacco control, so vape belongs to tobacco. Everyone knows that tobacco is strictly controlled in China. , General enterprises cannot produce and sell, so vape enterprises must obtain a license for vape production and sales if they want to continue to operate vape products. Obtaining a license means that the enterprise has been formally formalized.
If there is no accident, the supervision of Xinde is about to fall. In 2021, the "Decision on Amending the Regulations on the Implementation of the Tobacco Monopoly Law of the People's Republic of China (Draft for Comment)" drafted by the Ministry of Industry and Information Technology and the State Tobacco Monopoly Administration will be closed for comments. It is proposed to add one article: vape and other new tobacco products shall be implemented with reference to the relevant provisions on cigarettes in these Regulations. When the draft for comments was released, all major vape and e-liquid manufacturers and brands actively applied for licenses. At present, only a small number of leading companies are known to have obtained licenses.
What is the easiest way to get a license? That must be the leading enterprise of vape. After the online sales of vape and e-liquid were banned in 2019, the number of active vape brands in the country decreased by about 90%. These brands generally have little strength or because of vapes -The management and control of cigarette are unclear, and they have withdrawn from the vape industry. The vape brand has undergone a major reshuffle before the supervision has come. The remaining brands have turned their attention to the offline market. However, the cost of establishing offline channels is too high. High, only the top brands with a small number of digits are left that can still operate normally.
At present, the tax burden rate of vape enterprises is only about 13%, which is quite different from the comprehensive tax burden rate of cigarettes, which is about 67%. Because of the high price of the top brands, even if the tax rate increase is not a big problem, the niche brands are different. Their profits are already very thin. being threatened.
At present, people in the vape industry tend to fall into the arms of the State Tobacco Monopoly Administration. After obtaining a formal license, it means legalization in all aspects. There is no need to worry about the uncertain prospects. It is enough to actively explore the market and develop products. It may be the reason why head brands are actively seeking formalization.
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