On line ban of e-cigarettes

category:Finance
 On line ban of e-cigarettes


Statement of electronic cigarette enterprises

The circular made it clear that, from the date of printing and distributing, enterprises or individuals engaged in the production and sale of e-cigarettes should timely close the e-cigarette Internet sales website or client; e-commerce platforms should timely close the e-cigarette stores and remove the e-cigarette products from the shelves; and enterprises or individuals engaged in the production and sale of e-cigarettes should withdraw the e-cigarette advertisements published through the Internet.

After the two ministries issued documents, the e-cigarette enterprises responded quickly.

Liu Jihui, chairman of evove Yiwu, an e-cigarette brand, replied to the reporter of economic observation network: listen to the father of the country. As for the offline time and specific arrangement of products, he said, listen to the father of the platform.

Wang Fang, the marketing director of Xiwu electronic cigarette, told the Economic Observer: Xiwu firmly supports the regulatory decision and standardizes the orderly operation. Its expected that, in the end, we can only spell products and research and development, which is very consistent with our original intention. Do not fry marketing, do not attract young people, positioning mature smokers, focus on research and development.

Yueke, an e-cigarette brand, supported the decision on Weibo: Yueke does not serve minors. He also said that under the guidance of relevant departments, the offline channel layout will be improved, and all available scientific and technological means such as AI intelligence, face recognition, age verification and child lock design will be used to promote each offline sales outlet of Yueke to only serve adult smokers, not minors.

Influence geometry?

How does the ban affect the development of electronic cigarette industry?

A number of industry insiders interviewed by economic observer said that there was no doubt that the introduction of the ban made the e-cigarette industry calm down from the state of capital chasing and excitement. In the short term, the sales of enterprises will be greatly affected, but in the long term, the industry will develop in a positive direction after experiencing cooling and industry shuffling.

In fact, in the past month, the whole industry has been relatively pessimistic. Before this circular was issued, we knew that there would be a policy, so we were prepared psychologically. On November 1, an e-cigarette practitioner attending the iecie e-cigarette exhibition in Shanghai told the economic observer that the e-cigarettes produced by his company are sold at home and abroad, and more than half of them are sold online in the domestic market.

At present, the proportion of online and offline sales of e-cigarette industry is about 1:3 and 1:4, and the scale of offline sales is far larger than online sales, said Li oucheng, partner of BOPAI capital. But the online business is the self operated business of the brand business, and also the most profitable.

If you cant sell online, it will affect part of your profits. If they cant sell online, they may choose overseas markets. Said Li oucheng.

According to Li aucheng, the circular will definitely have an impact on the industry, but at present, it lacks detailed rules. The impact of this policy on players of different levels will also be different, and the impact on the head and tail players may be more serious.

An e-cigarette practitioner told the economic observer that the ban may refer to the trend of the U.S. e-cigarette policy, or pave the way for further taxation in the future.

Source: editor in charge of economic observation network: Yang Zeyu ufe63 nf6036