“Late at night, outside the factory, only the street lights are still on guard; in the factory, Li Xing and the founding team have been waiting beside the machine. In this way, they have been chatting side by side, looking at the machine from time to time, with anxious mood written on their faces.
“Yes!” At 4:00 a.m., I don’t know who shouted. People all looked over together. The second-generation product Future of ENJOVP electronic cigarette was successfully trial-produced after 3 months.
This is what happened in June this year, less than eight months before Li Xing founded ENJOVP.
Last November, the project completed a round of 50 million yuan financing. This round of financing is mainly used for product development, marketing and sales channel construction.
At present, ENJOVP has completed the distribution network layout of more than 100 cities throughout the country, and has radiated to Malaysia, Serbia, Dubai, the United States, Canada, South Korea and other countries and regions.
It was invested 50 million yuan in the month of its establishment.
Li Xing began to vape in 2014, but it was not convenient to use electronic cigarettes at that time. You have to open the nozzle and inject the e-liquid into the tank. This process should not only ensure that the e-liquid not injected from the middle air intaking hole, but also that the amount of e-liquid can not exceed the prescribed value. Next, the upper part of the atomizer is connected with the mouthpiece, and the lower part is connected with the device. Only by pressing several times can the atomizer be activated for use.
Last year, Li Xing came into contact with the electronic cigarette being vaped nowdays. When using the electronic cigarette, users only need to put the pod on the cigarette appliances without buttons then start vaping. The vapors enters the mouth, and the e-liquid can also be mixed with a variety of flavors.
The strong feeling of contrast makes Li Xing realize that today’s products are more suitable for young people in terms of convenience, fashion and taste than previous electronic cigarettes and traditional cigarettes. He stressed that in the trend of consumer upgrading, Vape players’ pursuit of fashion, cool lifestyle, and the trend culture based on electronic cigarettes have become an indispensable part of young people’s lives.
In September 2018, Li Xing began to investigate the whole industrial chain. Because of the particularity of tobacco, policy became his first consideration. He found that health products and electronic cigarettes were prevalent in European and American countries. According to Sun Zhengyi’s time machine theory, this phenomenon will also appear in China in the near future. It only takes time for market to regulate and verify it.
There are more than one billion smokers in the world, but the audience of electronic cigarettes is only more than 30 million. This part of the incremental market needs to be tapped and expanded. After looking at nearly 100 kinds of products on the market, Li Xing concluded, “Less than 10% of enterprises are really making products and brands in the market, which is our opportunity.”
In November 2018, founder Li Xing and Li Chen established Shenzhen ENJOVP Technology Co., Ltd. in Shenzhen, and launched the electronic cigarette brand ENJOVP.
Before founding ENJOVP, Li Xing served as the head of the northern area of Handheld Network and the co-founder of Beijing Leisure and Mutual Entertainment. He led the team to take the lead in chess and card games catagory, and attracted the attention of Kunlun Wanwei, a listed company, which eventually acquired it for 2 billion RMB.
At this time, Li Chen has been engaged in the research and development, sales and operation of electronic cigarettes for nearly five years. Before that, he was also the producer of chess and card channel operation in 360 Qihu Technology, responsible for the docking and operation of 360 chess and card channels on the whole network. After founding ENJOVP, Li Xing also invited Zhang Can, who has many years of experience in hardware research and development and production, to join.
From the later game industry to the electronic cigarette industry, Li Xing had to come to Shenzhen from Beijing. “After all, 90% of the global electronic cigarette products are exported here every day.” In Shenzhen, it means Li Xing is closer to the battlefield.
That month, the project completed 50 million yuan A round of financing. The capital said that besides recognizing the industry, the team of ENJOVP attracted them.
Enjovp sales network spreads in 100 cities
After getting the funds, the first thing Li Xing and his team did was to increase the investment in product research and development.
In February 2019, Li Xing received a sample of the first generation electronic cigarette products. Instead of rushing to mass-produce, he first gave the agents of more than a dozen offline physical stores some products to experience. In his plan, if we can identify critical users in the circle, then the product will be more likely to sell well.
“There’s a problem with product suction.”
“Too little flavors.”
“Inadequate atomization effect.”
Feedback from professional users makes the team both excited and frustrated. Li Chen has been caught in “worries about product problems” and “joy of improvement before mass production”. “After listening to all the feedback from users uninterruptedly, we polished it about 30 times before and after.”
A month later, ENJOVP’s first generation of vape starter kit came on the market, and launched five kinds of pods simultaneously. With product word-of-mouth promotion alone and without large-scale channel publicity, the growth rate of offline distribution network layout has remained at about 30% per month on average.
Unlike other e-cigarette companies who started hunger marketing before those products were on the market, ENJOVP appeared to be particularly low-key after the first generation of its products came out. In the research and development of the second generation product Future X, Li Chen mainly focuses on the two aspects of pods and devices to solve the problems of leakage, condensate and product homogenization in the industry.
As for the pod, FutureX, the second generation product, uses the five-layer anti-leakage design, and combines the self-developed swing airway holding design, which enables air intake, e-liquid and condensate to be separated intact. The self-developed condensate reflux technology can reduce condensate inhalation by 90%.
As for devices, unlike most of the electronic cigarettes in the industry that use primary anodization, FutureX adopts the CNC wire cutting technology and secondary anodization technology of the original Apple Supply Chain Factory. Li Xing introduced that the product has three colors: Aurora borealis, noble green and elegant grey. While having appreciation and collection, the product is also wear-resistant and not easy to fade. The team also embedded PCB smart motherboard in the device, which has many safety protection functions, such as over-suction protection, over-charge protection, short circuit protection, atomizer identification, and so on.
“In addition, the common ceramic cores in the industry are heated by the traditional angle heating wire, which is difficult to give users the best experience in vapor amount and richness. And our new ceramic atomization core technology can improve heating speed, expand the e-liquid intake area, and make the e-liquid fully atomized in 360 degrees in milliseconds. “He added.
In June, Future X came on the market, and the team began to focus on product promotion and brand building.
As for the reason why the first generation of products did not start to be promoted when they came on the market, Li Chen recalled that it was to give some support to the agents. “If we started to do online, users would directly come online to buy again, which is not fair to the agents.” But he also admitted that at this stage, it has also reached the stage of brand building and promotion. “After all, wine is afraid of deep lanes (it means product needs promotion)”
Nowadays, the retail repurchase rate of pods in ENJOVP Wechat Mall is 60%. Products and services have been distributed in more than 100 cities in China, and have been spread to Malaysia, Dubai, the United States, Canada, South Korea and so on. In addition, the company’s revenue in the past two months is more than 10 million, and maintain a 30% monthly growth rate.
Many friends in the friend circle of Vape.hk are domestic major vape agents and they all have ENJOVP product listed and keep promoting it every day in their friend circle. It saved lots of efforts of the brand in advertising. The market strategy in Enjovp’s early stage is effective and working much better than we expected.