Alibaba's international platform recently announced that it has modified its regulations regarding the sale of e-cigarette products, taking into account the varying legal requirements and standards across different countries and regions. As a result, certain components of e-cigarettes will be made available for sale again around October 12. It is worth noting that Alibaba banned the sale of e-cigarettes and related accessories, vaporizers, and e-cigarette nicotine products on May 1 last year. Why has Alibaba decided to readjust its e-cigarette sales rules just a year and a half later? Moreover, how are e-cigarette companies responding to this change?
What Impact does Adjustment of Sales Rules Have?
According to Alibaba's notification, complete e-cigarette products along with their essential components and materials are still not allowed for sale. Only certain accessories for e-cigarettes can be sold online. The sale of disposable e-cigarettes and their spare parts is strictly prohibited.
The notice states that merchants who have obtained the e-cigarette product qualification can now sell e-cigarette smoking devices and accessories on Alibaba International Platform. These include, but are not limited to, e-cigarette atomizers, smoking pipes, smoking pens, mouthpieces, e-cigarette batteries, e-cigarette liquid fillers, e-cigarette packaging, and other related products.
The notice also stipulates that merchants are prohibited from selling products that combine e-cigarette pods, vaporizers, disposable e-cigarettes, and other smoking tools, as well as any products that contain e-cigarette liquid, e-liquid, or nicotine. All disposable e-cigarettes and related accessories, packaging, etc., regardless of whether they are labeled with liquid information, are considered as disposable e-cigarettes and are prohibited from being sold.
On October 7th, 2FIRSTS interviewed several e-cigarette companies to gather their perspectives on the recent regulatory changes implemented by e-commerce giant Alibaba. How are these changes expected to impact the e-cigarette industry?
Renowned e-cigarette company Smoore has stated that it has not received any relevant information regarding Alibaba's modification of e-cigarette product control regulations and is unable to comment at this time.
FirstUnion Group, which operates electronic products, e-cigarettes, and accessories, has stated that the company primarily sells its products through offline channels, so Alibaba's rule change will have little impact on the company.
The marketing director of an e-cigarette company in Shenzhen believes that Alibaba's recent move will have limited short-term impact on the e-cigarette industry. During the period when Alibaba removed e-cigarettes and accessories, manufacturers with demand from overseas may have already switched to other online platforms. Purchasing habits on a platform are difficult to change in the short term once they are established.
The spokesperson mentioned that the current trend in the e-cigarette industry is a deep partnership between MD and DDP, and the company's positioning on Alibaba's international platform may serve to fill the gap between MD and DDP. However, it remains to be seen how Alibaba will further develop its strategy. If Alibaba's international platform can truly propel the related industry chain, it will indeed be a favorable channel for small and medium-sized enterprises.
Alibaba Intends to Enter E-cigarette Industry?
An anonymous industry insider in the e-cigarette sector has suggested to 2FIRSTS that Alibaba may be considering entering the e-cigarette industry. As a major e-commerce giant, Alibaba possesses extensive advantages in terms of industry chain, logistics, and warehousing, which make it highly likely that they may leverage these advantages to enter the e-cigarette market. Furthermore, in recent years, financial reports from e-cigarette companies have been impressive, and successful cases from companies such as BYD and Foxconn have already emerged.
In addition, the source believes that Alibaba's brand influence overseas and its relaunch of e-cigarette components has helped some small and medium-sized e-cigarette enterprises abroad. If these businesses grow and strengthen, they could potentially become competitors for Chinese companies in the local market in the future.
E-commerce analyst Chen Liteng from the E-commerce Research Center of Net Economy Society stated in response to 2FIRSTS that in March 2022, the National Tobacco Monopoly Administration of China released the "E-cigarette Management Measures", which came into effect on May 1 of the same year. The policy explicitly prohibits the sale of e-cigarette products to minors, and for those whose age cannot be determined, identification documents should be requested. Additionally, the sale of flavored e-cigarettes other than tobacco flavor and e-cigarettes that allow users to add vaporizers themselves is also prohibited.
At that time, Alibaba International Station, as an e-commerce platform, had to strictly comply with relevant laws and regulations and adjust its e-cigarette sales policies during the initial release of the documents. However, at this moment, it is understandable that adjustments are made in the profitable background of e-cigarettes without crossing any prohibited red lines. Nevertheless, this does not mean that Alibaba necessarily has to enter the e-cigarette industry.
2FIRSTS has contacted Alibaba International regarding the adjustment of e-cigarette sales regulations. The responsible personnel have stated that they will respond to the related questions at a later date.
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