How to buy tobacco oil now? How much impact does the epidemic situation have on the e-cigarette industry at home and abroad?

How to buy tobacco oil now? How much impact does the epidemic situation have on the e-cigarette industry at home and abroad?

According to the data of the e-cigarette Industry Committee of China Electronic Chamber of Commerce, since the epidemic, the e-cigarette industry at home and abroad has faced varying degrees of opportunities and challenges: China: China is the global e-cigarette production base, and smoking sets alone account for 95% of the global share. The United States and Britain are the world's first and second largest consumers respectively, and are the most important consumers of e-cigarettes in China. Domestic e-cigarette enterprises have successively resumed work at the end of February and basically returned to work in full in March. During the epidemic period, there was a strong demand for overseas orders. The export volume from January to April was estimated to be 10 billion yuan, the same as the same period in 2019, and achieved rapid growth in April. At the same time, many

According to the data of the e-cigarette Industry Committee of China Electronic Chamber of Commerce, since the epidemic, the e-cigarette industry at home and abroad has faced varying degrees of opportunities and challenges:

China: China is the global production base of e-cigarettes, and cigarette sets alone account for 95% of the global share. The United States and Britain are the world's first and second largest consumers respectively, and are the most important consumers of e-cigarettes in China. Domestic e-cigarette enterprises have successively resumed work at the end of February and basically returned to work in full in March. During the epidemic period, there was a strong demand for overseas orders. The export volume from January to April was estimated to be 10 billion yuan, the same as the same period in 2019, and achieved rapid growth in April. At the same time, many domestic e-cigarette enterprises are also increasing investment, including product R & D and equipment investment, and stepping up their own strength in special periods. We believe that this means that practitioners are optimistic about the future development of the industry.

United States: the United States is the largest consumer market of e-cigarettes in the world, accounting for more than 50% of the global share. It is not only the wind vane of the global e-cigarette industry, but also the market most concerned by the industry. According to the American electronic cigarette technology exchange Industry Association (VTA), the impact of the epidemic began in mid March. The first is the slowdown in imports, which makes it impossible for distributors to transport products. Among the 43 states that have implemented the stay at home restriction order, only 10 states still have e-cigarette retail stores open, and 3 states only allow roadside delivery. However, it is also difficult for these stores to supply their own products. Cigarette oil manufacturers in the United States have also converted their production lines into hand sanitizers to support the fight against the epidemic. In June, almost all States have resumed business, and only some areas have not reopened yet. It is worth noting that under the requirements of VTA, the FDA's PMTA deadline for e-cigarette enterprises was extended from May 12, 2020 to September 9, 2020, which bought time for global e-cigarette enterprises intending to explore the U.S. market. At present, China's top e-cigarette enterprises such as Maxwell (the parent company smore has been listed in Hong Kong stocks) and Yueke are preparing for PMTA.

Britain: Britain is the country that supports e-cigarettes most in the world and the second largest exporter of e-cigarettes in China. According to the UK Electronic Cigarette Industry Association (ukvia), there are more than 3000 electronic cigarette stores in the UK, an increase of 10% over last year. E-cigarette retailers in the UK have suspended store services since March 24 and reopened in mid June. Overall, the total sales decreased by 30% - 60%, of which the sales of open electronic cigarette products decreased by 60%. However, due to many stores turning to online sales and providing distribution services, the online sales increased by 1500%. In addition, due to government subsidies, the profits of these stores are rising despite the decline in turnover. Ukvia believes that the damage to the British supply chain during the epidemic is mainly due to the lack of supply from China, which makes them aware of the need to ensure the establishment of a stable and secure supply chain with China.

Europe: according to the European e-cigarette Association (Ieva), affected by the epidemic, e-cigarette physical stores in Germany and most EU countries have been required to close since March, and they were not opened until mid May. During the epidemic period, the sales of e-cigarettes were affected, causing wholesalers and factories to face the pressure of inventory backlog and cash flow; The electronic cigarette exhibition in the same period was also cancelled. At the same time, due to the implementation of strict health standards by the government and the rise of freight costs, the overall product cost has increased by about 10% - 20%. These costs are mainly borne by wholesalers, which also makes the wholesale price and retail price remain stable as a whole. Ieva predicts that the growth rate of European e-cigarette market will be 8.0% in 2020. At present, open e-cigarette products are still the favorite style of European consumers. The Association believes that stable e-cigarette consumers (including those converted from other products and experienced consumers) will be the main potential of the European market in the future.

Recent suggestions for new tobacco: International Supply Chain: smore (the world's largest manufacturer of atomization equipment); Yiwei lithium energy (holding SIMORE); Yingqu Technology (secondary supplier of iqos precision parts). China's supply chain: Jin Jia shares (together with Yunnan tobacco, Xiaomi ecological chain chain new tobacco main channel), Ji you shares (layout of new tobacco R & D and industrialization), Dongfeng shares (shares in the layout of new tobacco products), Shun Hao shares (smoke bombs and cigarette sets layout two pronged), Warburg shares and Warburg International (tobacco flavor and new tobacco raw materials layout leading). China Bolton (acquisition of international e-cigarette manufacturer Jerry).

Risk warning: new tobacco policy change / technology development risk, sales / enterprise development is less than expected