As the vaping industry rapidly evolves, maintaining a competitive edge and smoothly navigating industry cycles have become focal points of interest. Today, we delve into a special interview hosted by the Electronic Cigarette Industry Committee of China Electronic Chamber of Commerce with a leading figure in China’s vaping industry, Everest, the founder and CEO of ICCPP (parent company of VOOPOO). His insights shed light on how the Chinese vaping industry can continue to thrive by building new production capacities.
The Rise of China as a Vaping Powerhouse
China, the birthplace of electronic cigarettes, now holds over 70% of the global patents related to vaporization and over 90% of the production capacity. This dominance makes vaping one of the few industries in China that can truly claim the label “Made in China, Consumed Globally.” Despite challenging global economic conditions and complex geopolitical landscapes, China’s vaping product exports soared to $11.084 billion in 2023, marking a 12.5% year-on-year increase. This achievement highlights the significant contribution of the vaping industry to China’s “dual circulation” economic strategy.
However, behind the growth in export volume, risks are gradually emerging. According to public data from listed companies, many firms saw a decrease in performance in 2023. The decline in profits among competitive leaders suggests that the challenges may stem from market issues rather than merely operational problems. The global vaping market is likely reaching a growth bottleneck after years of steady increases, facing more intense challenges and uncertainties ahead.
Innovative Drive: The Heart of Development
There is no doubt that technology and innovation are the main drivers of today’s world, and nowhere is this more evident than in the vaping industry. As a nexus of interdisciplinary sciences including industrial design, thermodynamics, chemistry, biology, electronic engineering, and material science, the industry requires a broad range of expertise. The push for innovation is also advancing these disciplines, making electronic cigarettes a prime example of how new productive forces can drive industrial progress.
Striving for Differentiation in a Competitive Market
The key to standing out in the highly competitive tech-intensive vaping industry is differentiation, not homogenization. This is a lesson learned from various industries around the world, such as color TVs, smartphones, and small appliances, where only a few brands with distinct characteristics survive the fierce competition. Today’s vaping market demands a mature, rational, and professional consumer base that values uniqueness and innovation. Reflecting on the strategies of multinational tobacco giants and leading Chinese firms can provide valuable insights into successful differentiation tactics.
Regulatory Compliance: A Foundation for Sustainable Growth
In the face of a complex and vast user base worldwide, reverence for market regulations is paramount. The commitment to compliance should not just be seen as a limitation but as an opportunity for innovation and advancement. Effective regulation ensures consumer safety, fosters fair competition, promotes innovation, and upholds corporate responsibility. The recent implementation of a robust regulatory framework in China serves as a model, highlighting the country’s leadership in fostering a regulated and healthy development of the vaping industry.
Conclusion: Pioneering the Future of Vaping
As we navigate through the evolving challenges of the global market, the need for a broader perspective and deeper analysis becomes evident. Chinese enterprises must enhance their capabilities in technology, product innovation, and branding to meet the rising market demands and regulatory standards. Perseverance in innovation and commitment to differentiation are key to breaking new ground.
In conclusion, ICCPP’s CEO Everest emphasizes the company’s core principles: compliance, technological innovation, and consumer priority. By focusing on enhancing user experience and investing in harm reduction research, ICCPP aims to provide safer and more satisfying vaping experiences, steering clear of price wars and imitation, and fostering a positive development ecosystem for the global vaping industry.
