On August 20th, the Shenzhen International Electronic Cigarette Industry Expo was held at the Convention and Exhibition Center. This exhibition appealed to two new participants from China Tobacco: Yunnan China Tobacco and Henan China Tobacco. These two companies both produced their own heat-not-burn products, attracting many participants to watch and try. These products have been exported overseas.
Yunnan China Tobacco owned well-known brands such as Ashima and Hongtashan. Many people were interested in their HNB products. According to the exhibitor Chen Manman, their products were very popular abroad and were exported to many countries such as Arabia.
There were several companies subordinate to China Tobacco Corporation, each of which owned its own brands and products. Chen said traditional tobacco companies saw the aggressive development trend of e-cigarettes and naturally had a sense of crisis. They hoped that research and development could also participate in e-cigarette, so that they could take advantages when China would gradually open this market in the future.
The government was actually encouraging traditional tobacco companies to develop heated-but-incombustible electronic cigarettes. In order to develop e-cigarettes, Yunnan China Tobacco established Shenzhen Huayu Technology Development Co., Ltd.. Huayu Technology produced various smoking sets and atomized electronic cigarettes.
The industry was waiting to recover.
Due to the pandemic, the audience number present at Expo declined compared with last year. The exhibition that was originally scheduled in April has been postponed. It has been 492 days since the last Expo organized by Shenzhen IECIE. The impact of the pandemic is still there. Few manufacturers said that their business had been resurrected to the prosperity of last year.
The atmosphere of the exhibition was a little different from the past. The smoke booth could rarely be seen on the scene, and there were no models swallowing the clouds. Only a few platforms have DJs playing manic music. Many emerging e-cigarette brands, such as Bode, Xiwu, Ono, Snow Plus, etc., were showed up at the scene. Many brands attracted investment on site and all of them were posted in conspicuous locations. The maximum subsidy for a single store reached to ¥300,000.
After the government introduced policies to restrict online sales of e-cigarettes last year, China e-cigarettes industry have fully turned to offline, and e-cigarette manufacturers with physical channels tend to take advantages. This also forced e-cigarette manufacturers to open stores if they wanted to survive.
On-site reporters also saw two listed companies participating in the exhibition, among which Jinjia brought the e-cigarette brand Foogo to the exhibition. According to the staff, they have a series of cooperation with Yunnan China Tobacco, and the two sides also established a joint venture company. The company also provided R&D services to many customers.