ALD brand manager Mr. Deng is interviewed by major media in China including Beijing Satellite TV, Aiqiyi, Tencent Video, Youku, Netease at CEE 2019. Mr. Deng denoted, “Sales increase will only show in a small number of high-quality enterprises and brands like ALD.”
This interview is long and professional which is mainly related to the China domestic vape market regulation and laws, the domestic market current situation and the influence of the 315 party issue. Since our readers are mainly out of China, so we only picked up the part which is most valuable to readers out of China.
What is the future development trend of electronic cigarettes in your opinion? Does ALD already have a layout or did you make preparation for the future development?
ALD Mr. Deng:
On the general trend, we believe that as the market matures and competition intensifies, and regulatory policy advances rapidly, the Matthew effect of the market will quickly emerge.
Sales increase will mainly show in a small number of high-quality enterprises and brands, poor players will be phased out. In this shuffling process, we will see a series of obvious changes: the design of electronic cigarette products will be intelligent, the production and manufacturing will be fully automated, the R&D investment of enterprises will continue to grow, and the industry threshold will become higher and higher; while consumers will buy more satisfactory electronic cigarette products at more and more affordable prices, the overall market scale will continue to expand, and the whole industry will enter a benign cycle.
We believe that the electronic cigarette industry will truly enter the era of product first. Whether it is a manufacturer or a brand manufacturer, only by doing a good job of products can we find a way out in the future. In order to cope with the future competition, ALD has been maintaining high investment in R&D sector – R&D investment accounts for more than 10% of sales every year. At present, the company has a deep accumulation of technology. It owns many core atomization technology brands and core advantages such as SILMO, Microfeel etc. and our development of new technologies and new products keeps on coming.
In the field of production automation, ALD is also at the leading place of the industry. Since 2018, ALD has introduced automation production lines one after another. At present, the automation level of production and manufacturing is far ahead in the industry. It is expected to basically complete the upgrading of automation production lines by the end of 2019. The input of automated manufacturing will help us to gain remarkable advantages in cost control and product quality, and boost our future development.
In short, we are confident in the future development of the industry and the development of our enterprises. We will be down-to-earth, never forget our first intention, and actively contribute to the development of the industry. We sincerely look forward to the vast number of industry practitioners working with us to jointly promote the development of the whole industry and create greater value for smokers and society.