[2FIRSTS] Experts Interpretation of the "Exclusivity" from the "E-Cigarette Management Measures"

Industry Insight by 2FIRSTS
Jun.13.2022

What Exactly is "Exclusivity"

 
Article 20 of the “Measures for the Administration of Electronic Cigarettes” stipulates: "An enterprise or individual who has obtained a tobacco monopoly retail license and is qualified to engage in e-cigarette retail business shall purchase e-cigarette products from local e-cigarette wholesale enterprises, and shall not exclusively operate e-cigarette products that are marketed ".
The literal meaning of this article is to obtain a retail license first, and then not to "operate exclusively".
"Guiding Opinions on the Layout and License Management of E-cigarette Retail Stores" (5) states that "the cases of not granting e-cigarette retail license also include: exclusive operation of e-cigarette products listed and sold".
The literal meaning of this article is that "exclusive operation" comes first, and the result of not granting retail license occurs after.
From the "Measures" to the "Opinions", "exclusive operation" in the former relates to whether licensed retailers operate in compliance, while in the latter it relates to whether unlicensed retailers can get a license to continue working. The importance is self-evident.


Then the question is, what is "exclusivity"?

 
According to the Chinese Dictionary published by Chinese Dictionary.com, the exclusive explanation is that "one thing does not allow another thing to coexist with itself in the same scope".
According to the general understanding, e-cigarette brand stores are undoubtedly "exclusive" and naturally only offer their own products. The (one thing) e-cigarette brands do not allow (another thing) other e-cigarette brand to coexist with itself in the (same scope) the e-cigarette brand store. So recently, I always hear a voice: If you want to continue doing this, you must sell two or more brands at the same time, so that it is not "exclusive".
However, what if the same manufacturer launched a second brand and put it in the current specialty store?
Or, some two different manufacturers' e-cigarette brands have reached an agreement. Brand A stores the goods of brand B, and brand B stores the goods of brand A, but these two brands continue to prevent brands such as C, D, E and F from entering the store?
Or, the owner of the collective store has been hurt by a certain brand, so the owner is willing to sell other brands, minus the goods of this certain brand? 
Or, I'd love to have the brand, but it's not in the local supply list, it's pre-scheduled by the wholesaler, so what can I do?
There is another situation, the owner can stock up all the brands on to the shelves. But the consumers actually only recognize one of the brands, which leads to the fact that "exclusive replenishment" occurs when the supply of goods is organized according to the order. Should we use the retail blind box, wholesale packages to solve this problem?
A consumer's mind is a big cabinet, and each demand corresponds to a category drawer, and the brands that can be settle in this category drawer are limited, so brands are naturally "exclusive" at the consumer end. In order to achieve non-exclusive operation, it is necessary for the industry and commerce to work together, dig deep into the demand, and make the big category of electronic cigarettes into several subdivided categories, which will be occupied by different brands. When all brands have exclusive consumers, there will naturally be no exclusive retail outlets.

 

Australia Quantifies Black Market for First Time, Illicit Nicotine Products Account for About 80% of Consumption
Australia Quantifies Black Market for First Time, Illicit Nicotine Products Account for About 80% of Consumption
The Australian Bureau of Statistics (ABS) has released its first estimate of the illicit nicotine market, finding that about 80% of cigarettes, vapes and other nicotine products consumed in 2025 came from illegal sources, reigniting debate over tobacco taxation and enforcement policies.
Jun.03
Haypp Report Shows Nicotine Pouches Gaining Ground as a Vape Alternative in the UK
Haypp Report Shows Nicotine Pouches Gaining Ground as a Vape Alternative in the UK
According to Haypp’s 2026 UK Nicotine Report, nicotine pouches are increasingly replacing both cigarettes and vaping. The UK market grew sharply, with Haypp and Northerner reporting a 60% year‑on‑year sales increase in 2025. Notably, 40% of users adopted pouches to quit vaping, nearly matching the 43% who used them to stop smoking. This indicates pouches are expanding beyond traditional smoking cessation and gaining traction among adults seeking non‑inhalable nicotine alternatives.
Jul.01
FDA Foreign Tobacco Registration Proposal Could Strengthen ENDS Import Oversight, Azim Chowdhury Says
FDA Foreign Tobacco Registration Proposal Could Strengthen ENDS Import Oversight, Azim Chowdhury Says
FDA’s proposed rule requiring foreign tobacco manufacturers to register establishments and list products is more than routine paperwork, Keller and Heckman LLP partner Azim Chowdhury told 2Firsts. He said it could strengthen FDA’s import enforcement, inspections and market surveillance. Chinese e-cigarette OEM/ODM manufacturers, specification developers, brand owners and component suppliers may need to review their roles, product data and U.S. market authorization status.
Special Report
Jun.29
Adani’s Mumbai Airport Duty-Free Shops Face Scrutiny Over Nicotine Pouch Sales in India
Adani’s Mumbai Airport Duty-Free Shops Face Scrutiny Over Nicotine Pouch Sales in India
An Indian investigation found that duty-free shops at Mumbai international airport operated by billionaire Gautam Adani’s business group sold nicotine pouches in breach of the law, Reuters reported, in a case that could shape how India regulates sales of new nicotine products at airport retail outlets.
Jul.08
Product | KT&G Expands lil AIBLE 3.0 Sales to Seoul Convenience Stores, Launches Two New AIIM Variants
Product | KT&G Expands lil AIBLE 3.0 Sales to Seoul Convenience Stores, Launches Two New AIIM Variants
According to South Korean media reports, KT&G has expanded sales of its heated tobacco device lil AIBLE 3.0 to convenience stores across Seoul starting May 13. The convenience-store version is offered in the exclusive OUD GRAY color. On the same day, KT&G also launched two new dedicated consumables for the lil AIBLE platform—AIIM REMIX and AIIM ICESPOT—at convenience stores nationwide, each priced at KRW 4,800.
Market
Jun.01
Ireland Vape Bill Passes Dáil, Setting Limits on Flavours, Packaging and Retail Display
Ireland Vape Bill Passes Dáil, Setting Limits on Flavours, Packaging and Retail Display
Ireland’s Public Health (Tobacco Products and Nicotine Inhaling Products) (Amendment) Bill 2026 has passed final stage in the Dáil and will move to the Seanad, with measures to limit vape flavours to tobacco or unflavoured products and tighten rules on packaging colours, retail advertising, in-store displays and sales of nicotine pouches to minors.
News
Jun.26 by 2Firsts Perspectives