After e-cigarettes were included in the supervision, the market also saw the following changes:
Industry concentration increased:
Survival of the fittest: Regulatory policies have raised the industry’s entry threshold and put forward strict requirements on the production qualifications, product quality, technical standards and other aspects of enterprises. Some small e-cigarette companies are facing the fate of being eliminated because they cannot meet regulatory requirements. Large enterprises, with their strong financial strength, advanced technology research and development capabilities and perfect quality management systems, are more likely to obtain relevant licenses and occupy an advantageous position in market competition. For example, in the production process, companies with large-scale production capabilities and strict quality control systems can better cope with regulatory requirements for product quality, thereby gaining more market share.
Change in product innovation direction:
Focus on technology research and development: Under regulatory requirements, companies will invest more energy and resources in technology research and development. On the one hand, companies are committed to improving the safety and reliability of e-cigarette products, strengthening research and improvement on battery safety, atomization technology, and smoke oil composition; on the other hand, companies are actively exploring new e-cigarette technologies and product forms, such as low-temperature non-combustion e-cigarettes and nicotine-free e-cigarettes, to meet the needs of different consumers. For example, some companies have developed e-cigarette products with intelligent temperature control functions, which can automatically adjust the temperature according to the user’s smoking habits and improve the user experience.
Standardization of sales channels:
Adjustment of offline channels: The offline sales channels of e-cigarettes have undergone major adjustments and standardization. Most of the previous e-cigarette specialty stores have been transformed into collection stores, operating e-cigarette products of multiple brands. At the same time, the layout of sales outlets is more reasonable and no longer as dense as in the past. Traditional retail channels such as shopping malls, supermarkets, and convenience stores have stricter sales management of e-cigarettes. Only stores with relevant licenses can sell e-cigarette products. In addition, some e-cigarette companies have begun to cooperate with traditional tobacco retailers to expand the market with the help of their extensive sales network.
The consumer market is gradually maturing:
Consumer awareness is improving: The implementation of regulatory policies has prompted consumers to have a more rational and objective understanding of e-cigarettes. Consumers have begun to pay attention to information on product quality, safety, ingredients, etc. of e-cigarettes, and have higher requirements for the quality and brand of e-cigarettes. At the same time, consumers have a deeper understanding of the health risks of e-cigarettes and no longer blindly follow the trend to buy e-cigarette products.
Competition in the export market intensifies:
Brands face more challenges in going overseas: In the international market, there are many e-cigarette brands and competition is fierce. In the process of going overseas, Chinese e-cigarette companies not only face competition from brands from other countries and regions, but also need to deal with challenges in international trade frictions and intellectual property protection. Therefore, companies need to strengthen brand building and marketing, improve brand awareness and reputation, and expand international market share.