On the morning of March 2nd at 11 a.m. Beijing time, 2FIRSTS hosted an online post-TPE exhibition sharing session with the theme "What kind of American e-cigarette market do we see through TPE?" Over 300 e-cigarette professionals attended this session, and the live stream received over 17,000 likes.
David, head of the Washington News Center, provided detailed information on the main exhibitors, features of the exhibition, characteristics of the US market, and the implementation of California's ban on flavored products.
Live PPT | Image source: 2FIRSTS.
Major brands innovate, while smaller ones rely on imitations. Those in between just tweak their packaging.
At the TPE Exhibition, the main showcase was disposable e-cigarettes, while refillable and open system devices were only a small part of the exhibits. However, with this trend came a notable homogenization of disposable products, with many brands displaying serious similarities in appearance and performance.
To break free from the "homogenization" dilemma, many leading electronic cigarette manufacturers are increasing their efforts in research and development to create innovative products and establish product barriers. At this exhibition, several leading electronic cigarette manufacturers showcased their new products and technologies.
Leading brands in the electronic cigarette industry are showcasing their latest products and technologies at the TPE (Tobacco Plus Expo) exhibition. Smoore International (booth number 1214) has unveiled their new technology, Power Alpha, which allows up to 6,000 puffs without needing a recharge. ELFBAR (booth number 2213) is highlighting its core product, Ti7000 from LOST MARY's FUNKY REPUBLIC line, which features a first-of-its-kind disposable vape with a digital display screen showing the remaining e-liquid and battery levels during use. Ti7000 is currently only available in the United States. SMOK (booth number 3219) has also incorporated battery and e-liquid level indicators into its disposable NOVO BAR AL6000. Italian e-cigarette brand, KIWI (booth number 1226), has developed a product that utilizes oil core separation technology, using ceramic cores from Smoore International. These updates reflect major brands' commitment to developing new products and technologies that enhance the user experience and meet consumer needs in the industry.
Question and Answer Session | Image Source: 2FIRSTS
Dealers only focus on price and are not willing to grow with the brand.
2FIRSTS conducted live interviews with several well-known dealers in the United States. When asked about their top priorities when selecting products, their answers could be summarized into three main aspects.
They only sell well-known and established products and are unwilling to partner with smaller brands to grow together.
Dealers who attended the exhibition as spectators stated that they had no interest in discussing collaborations as they did not have exhibition booths.
They solely prioritize price and profit, adopting an "all about price" approach.
This suggests that American dealers and Chinese brand owners have different priorities. They focus more on price rather than technology and innovation. During the live broadcast, an audience member asked if the dealer had plans to promote their own brand. David confirmed this and mentioned that when the dealer only cares about obtaining goods at a low price, they become more ambitious and are likely to cultivate their own brand.
2FIRSTS has interviewed several electronic cigarette companies in China regarding this situation. They believe that the market for disposable electronic cigarettes has not yet reached a level where a price war is necessary. They emphasize that developing quality products, upgrading technology, and differentiating themselves from competitors is the key to success in this industry.
Live Presentation Slides | Image Source: 2FIRSTS
Has single-use reached its peak? Attitudes among distributors vary.
When it comes to the development of disposable e-cigarettes, various distributors have differing attitudes. The leading distributor in this category, Demand, expresses their optimism with three simple words: grow, grow, grow. They have high hopes for the future of disposable e-cigarettes and plan to continue purchasing this type of product.
Noel, the Marketing Director of Empire Imports, an e-cigarette wholesaler in California, has stated that the company currently has no demand to purchase any more disposable e-cigarettes. This is because they have approximately 12,000 units in stock and they are being sold at cost price in order to make room for new products in the future. However, it is worth noting that Noel remains optimistic about the market potential for disposable e-cigarettes, but for the time being, they are not needed in the current stage of development.
Image source: 2FIRSTS
Ban on flavors has little impact; PMTA goes unnoticed.
Noel has stated that despite the ban, flavored electronic cigarettes are still being sold in the California market, with fruit flavors such as watermelon, blueberry lemon, and strawberry being the most popular. Sales for Empire decreased slightly after the ban was implemented, but have since rebounded by about 2% this month, according to Noel.
According to reports, following the flavor ban, only 5-10% of e-cigarette stores in California have closed, and these shops were relatively small. Most stores have reported stable sales. However, e-cigarette shops are also exploring alternative products to flavored e-cigarettes, such as selling products online or offering disposable e-cigarettes without any flavorings.
It is worth mentioning that during the exhibition, the majority of electronic cigarette manufacturers did not obtain pre-market tobacco product application (PMTA) approval from the United States Food and Drug Administration (FDA). According to an interview with 2FIRSTS, not many distributors in the US are concerned about whether the products have passed PMTA certification, and some are even unaware of its existence, as they do not think it is important.
However, for brands, many have realized the importance of PMTA and have increased their investments to achieve their plan of passing PMTA.
2FIRSTS will soon begin coverage of the APE exhibition in Fort Lauderdale, Florida. Stay tuned for updates.
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