vape has not entered the cold winter

There are nearly 8,000 vape-related companies in Shenzhen, of which over 3,000 are concentrated in Bao'an District. And Shajing Street, Bao'an District, is the world's vape production center. Here, manufacturers can easily find all the raw materials they need for vapes: foundries that produce metal cigarette rods, plastic factories that supply cigarette holders, and packaging boxes. At the beginning of 2021, the government issued a draft of vape management opinions, indicating that vape will be included in tobacco control. In full swing, it doesn't look like it's in the cold winter at all.

In 2021, in Shajing, Shenzhen, almost every vape company will post recruitment advertisements for urgent employment of general workers. The upcoming control does not care much, and many manufacturers are still actively exploring the market.

Although the market supervision in the United States has suddenly strengthened in 2020, many disposable vapes that were popular in the United States have been swept away by the United States. Although they have lost the American market, vape manufacturers are still not discouraged. They are actively exploring the market. Russia The popularity of the vape market benefits from the efforts of Shenzhen manufacturers.

At present, China is basically dominated by vape head brands, but it is different abroad. Many small vape brands do not have the strength to compete with head brands in China, so they began to focus their efforts on turning their targets to foreign markets. The products of vape manufacturers have sold vape products to more than 70 countries and regions overseas. Obviously, there are so many markets where vape sales can still be carried out, so the cold winter of vape will not naturally occur. coming.

The competition in the domestic vape market is undoubtedly cruel, and the competition in this market has abandoned many small brands. The competition that big brands participate in often involves subsidizing customers. At present, the production cost of disposable vapes is between 8 and 16 yuan. The cost price, and even some brands set the price at 5 yuan, which is far lower than the cost price of vapes. Naturally, the brands with insufficient strength could not follow up and withdraw one after another.

There is also a subsidy for vape physical stores. In order to quickly open the market, some brands can provide free decoration and free distribution as long as the vape physical store provides a lease. The funds spent in these subsidy wars are basically over several hundred million. Obviously, small brands cannot do it. Therefore, if there is only a domestic market, it will be a cold winter for most vape brands.

Although the current environment has little impact on the development of the vape industry, the future supervision may not be certain. According to the current exposed supervision, companies that want to continue to produce and sell vapes in the future must obtain a production license and Sales licenses, however, the licenses that vape companies have applied for have not yet been completed. It is believed that only a few will be able to obtain licenses in the end. It was a cold winter for vape companies that did not obtain licenses at that time.

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