[2FIRSTS] In-Depth Dialogue With Domestic E-Cigarette Entrepreneurs on The Internationalization Trend of The Industry.

In recent years, the export demand for e-cigarette products has increased dramatically, and the industry's internationalization trend has become increasingly apparent. Chinese e-cigarette companies are targeting international markets. Simultaneously, the relevant policies of numerous nations and regions are tightening, and the international environment is in a constant state of flux. In this context, the 2 FIRSTS met with domestic e-cigarette business owners to discuss the industry's maritime planning.

Enterprises are Determined to Use Policy Empowerment.

The State Tobacco Monopoly Bureau recently issued the “Measures for the Administration of Electronic Cigarettes”, which went into effect on the 1st of May. After the implementation of the policy, it is anticipated that the problem of the chaotic growth of e-cigarettes will be resolved on a fundamental level. Qiu Jinhua, executive deputy general manager of VapeEZ states, "With policy tightening and an uncertain future, the market selection should be flexible and diversified, so we should be prepared to execute well on the layout of multiple regions." The founder and CEO of VOOPOO Technology, Zhao Guanyun, concurs: "A large number of brands and manufacturing companies are currently adopting a wait-and-see stance. As a result of the current economic climate and epidemic situation, businesses have been under intense pressure. We should maintain a welcoming stance towards immature industries and encourage businesses to export with relatively clear policies. In addition to policy empowerment, enterprises should have the determination, attitude, and advocate for product compliance in order to create a situation where a hundred flowers bloom and end the monopoly of businesses. Otherwise, foreign brands will overtake at the corner, and China (e-cigarette industry) will essentially become a foundry. This should be taken as a warning sign for the future of Chinese (e-cigarette) businesses."

(Zhao Guanyun, founder and CEO of VOOPOO Technology)

The Key Breakthrough in The Future Lies in Technology.

China's e-cigarettes is focused on the upstream of the industrial chain and do not penetrate the channel and brand, resulting in the majority of profits accruing to foreign businesses. Zou Jun, general manager of ZINWI Bio-tech, suggested: "We should increase technological innovation and our efforts in the retail sector, promoting the brand internationally, therefore, create a real distinction for Chinese brands and Chinese creations. If we are willing to increase our investment in technology, Chinese companies will be expected to lead the pack." Li Bo, chairman of CLOUPOR tech, added: "To be truly free from the influence of policies or the differentiation of domestic and foreign markets, it is still necessary to strengthen our own bottom-level technology and product development capabilities in order to establish competitive advantages. If we wish to continue to maintain the leading position of Chinese enterprises in the global economy, we must not simply focus on the number of enterprises, the volume of shipments, or even on making more or less money; rather, we must make breakthroughs based on logic and principle."

(Zou Jun, General Manager of ZINWI Bio-tech)

(Li Bo, Chairman of CLOUPOR Tech)

Additionally, Qiu Jinhua values the scientific and technological prowess of businesses: "The central argument is the necessity for heavier focus on technological innovation. To build the overall national image of China's e-cigarettes, both small and medium-sized businesses and large corporations need technology as the core and support. Under the direction of the special committee, we will combine everyone's strengths, create a unified market, and make the industry more holistic and robust. The image of electronic cigarettes will gradually become legal, healthy, and positive."

(The left is Qiu Jinhua, executive deputy general manager of VapeEZ)

The Market Needs Chinese Brands in The Future.

Zhao Guanyun believes: "China's e-cigarette industry chain is extremely robust, with geographical advantages, supply chain advantages, first-mover advantage, talent system advantages passed down from generation to generation, and many years of accumulated experience. It holds the uncontested top position in the world. From the projection of the industry's growth, it is essential for the maritime industry to grow."

Li Bo recalled that the prospect of venturing out to sea is gloomy. Greater Bay Area's current prosperity is a phased achievement dependent on its innate talents and existing supply chain, which offer little competitive advantage and cannot be sustained. "Brand companies that go offshore are not dominant. Because it is implemented on consumer-grade FMCG products, the requirement and appeal of the brand is to control the terminal channel. The local market life cycle of a brand is determined by the ability to control the terminal channel and the level of refined operations."

Qiu Jinhua made a remark, "The dominance of the market and brands is the greatest shortcoming of China's e-cigarette industry. Even if our products have the first chance, it is difficult for us to influence a particular type of product. Concerning export enterprises, there are numerous types of sub-processing, and China must make brand-building efforts."