Optimism in China’s prospective E-cigarette market

The phrase that smoking is harmful to health has been read every day since birth but in fact?

According to the survey, from 2013 to 2016, the tobacco industry’s financial contribution ratio reached 6.32%, 6.49%, 7.19%, and 6.27%, respectively, and remained above 6% in 2017. In the past five years, the tax revenue paid by the tobacco industry has maintained a higher growth rate than the national fiscal revenue growth in the same period. It has always maintained the contribution of tobacco tax to the national tax ratio of more than 6% and has always maintained its importance to the national economy.

It can be said that smokers are sacrificing themselves for feeding the people of the country.

The irreversibility of smoking is obvious to all. For old smokers, in order to avoid the effects of a series of physical diseases and second-hand smoke caused by traditional cigarettes, it is bound to choose a cleaner and fresher E-cigarette.

As the largest manufacturing base of E-cigarettes in the world, China is diligently processing international E-cigarette brands. More than 90% of the world’s e-cigarettes are made in China, but China itself has no famous export brand. The bottom position of the supply chain seems to always be kept for China.

According to China’s E-cigarette export data in 2018, the industry is in rapid growth. Every year, countless new capitals are invested in.

The top six companies in e-cigarette export enterprises are almost all located in the surrounding areas of Shenzhen. These companies account for about 50% of the export value, and the export value is close to $2.8 million, which is equal to ¥1.94 billion, but this is the only amount obtained by the manufacturing plant which is at the bottom of the supply chain.

From the point of the entire industry chain, most profit is undoubtedly the brand owner and the direct product seller, the lowest belongs to the manufacturing plant, which is actually It is the dilemma faced by China in various product markets.

Since 2019, a large amount of capital has flooded into the E-cigarette market. Many emerging brands have sprung up in the market. The competition in the E-cigarette industry has increased significantly. Some brands have begun to consciously establish their own brand image and take the lead to establish their own advantages, the most typical is the original Smartisan technology entrepreneurs.

In addition to them, there are a number of brand manufacturers who have chosen low prices as their own advantages due to lack of marketing capabilities. By lowering product prices in exchange for the market, the E-cigarette market has fallen into price wars.

Today, when a large number of capital blooms everywhere, the craze of the E-cigarette market will inevitably usher in a large amount of investment. But behind this prosperity, whether these companies are clearly aware of the future of the tobacco market? Where will China’s E-cigarette market go?

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Asun
Asun@Vapebiz.net
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