MOTI helps partners resume operations with 7 policies

MOTI provides the following seven assistance policies and ten million subsidies to help partners resume operations and help each other to create victory in 2020!

Policy 1 Distribution subsidy

During the outbreak, most malls across the country were closed, as was the MOTI store. In order to allow users of MOTI to enjoy uninterrupted supply of replacement cartridge without leaving home, to ensure that users can better enjoy MOTI service during the epidemic, MOTI encourages franchise store owners across the country to confirm the age of the user and open 0 contact delivery service. For brand franchise stores nationwide, MOTI will uniformly issue 1,000 yuan worth of goods at the end of March for franchise store distribution service subsidies.

* Scope of application: MOTI China franchise stores *

Policy 2 Promotion boost

In order to increase the activity of agents’ partners in all channels, MOTI will successively launch promotional activities for end users, providing promotional support in all aspects from event guidance programs, supporting gifts, material design, etc., to help terminals increase sales. The detailed promotional campaign plan and supporting support will be synchronized to the agent franchise partners by the MOTI regional manager of each area.

* Scope of application: MOTI China franchise stores *

Policy 3 Rebate on order

In order to support new players of MOTI MOTI partners, and to give back loyal fan users of MOTI MOTI, all months of March, regardless of the province or the form of cooperation, MOTI MOTI agents joined the partners. For orders, MOTI MOTI will give rebate subsidies for orders. For specific rebate policies, please consult your regional manager. MOTI MOTI will reduce the operating costs of partners.

* Scope of application: MOTI China franchise stores *

Policy 4 Investment Promotion

From March 2020, MOTI will start recruiting partners from all provinces and regions through nearly 300 directly-operated stores across the country. Through the display of investment materials and the introduction of MOTI ‘s own team, make more MOTI partners join the agency system of provincial / urban agency partners to help agents recruit partners at all levels.

* Scope of application: MOTI China franchise stores *

Policy 5 Shop subsidies

Based on the original plan to invest tens of millions in the shop opening policy, the new franchise stores opened by MOTI’s franchising partners in the second quarter of this year will get an additional 3,000 yuan in shop subsidies (distributed as replenishment) to reduce the cost of opening a MOTI partner’s shop.

* Scope of application: MOTI China franchise stores *

Policy 6 Spark Project

Recruitment plans for MOTI Spark Project continue to be launched, helping partners to expand their business. Starting in March, MOTI will continue to invest 10,000 mini vending machines, 1,000 vending machines, and 600 store-to-shop counter display materials, which will help agents join partners to expand their business offline. MOTI will work with brand partners work closely together to enrich offline retail terminals.

* Scope of application: MOTI China franchise stores *

Policy 7 Operational Empowerment

From March, MOTI will open online boutique courses for all agents, providing product knowledge explanation, store location guidance, involving channel distribution, store operation management, customer base maintenance, sales skills and other courses. At the same time, the MOTI online material library will be opened to ensure that all kinds of materials are synchronized to all partners at the first time. In addition, it will continue to update store business information. Through the tool for querying stores near the brand and the MOTI membership system, it will continue to divert users to terminal stores and empower partners in an all-round way.

The “epidemic” of this war is not over yet. I hope that your partners will not slacken in the epidemic prevention and control, and resume work without errors.

Thanks to every partner for their trust and support, and every user for their understanding and tolerance, and thank you for always being on this road! MOTI will always be with you to win the “epidemic” of this nationwide war!

American vape giant Juul is about to enter China and is secretly building a Chinese team

Juul, the American vape brand that awarded its employees an annual prize of $1.3 million per capita last year, is planning to enter China and has now begun to build a Chinese team secretly.

Juul was valued at $38 billion last year

In December 2018, Marlboro’s parent tobacco giant Altria (NYSE listed company, code MO) took a 35% stake in Juul for $12.8 billion, with a valuation of up to $38 billion. Altria has a market value of more than $100 billion.

As part of the $12.8 billion investment agreement, Juul will receive a one-time dividend of $2 billion, which the company decided to award as a year-end bonus to its 1,500 employees, with an average of $1.3 million per person.

Juul is currently the highest valued start-up company in the vape industry and the most well-known representative of the vape genre. Its market share has soared from 13.6% in early 2017 to 75%.

Juul has two founders, Adam Bowen and James Moncis. Two older brothers founded the electronic cigarette company Ploom in 2007. They also studied for a master’s degree at Stanford University. Eight years later, around 2015, they sold the brand to Japan Tobacco Company. Then they launched the U-disk-shaped electronic cigarette and named it as Juul, which quickly became the leader of the American electronic cigarette market.

Juul’s current shareholders include Tiger Fund and Fidelity Investment Group.

FDA Raids Juul Vape and Takes Away Thousands of Documents

Juul has the patent to extract nicotine salt from tobacco. It tastes like real smoke. It’s very simple and innovative in appearance. At the same time, Juul likes marketing in social media. It’s a super-popular product with talent, beauty and keeping pace with the times.

Although the control of IQOS heat not burn electronic cigarettes is controlled stricter in the U.S. market, it does not mean that the vape represented by Juul will be liberalized. After the rapid spread of electronic cigarettes through social networks among teenagers, the Food and Drug Administration of the United States (FDA) began to intervene.

In an interview in early April, Scott Gottlieb, head of the FDA, named and criticized Juul for blaming electronic cigarettes for the crisis of nicotine addiction among American teenagers.

According to a report released by the National Institutes of Health at the end of last year, e-cigarette use among high school students in the United States has nearly doubled from 11% to 20.9% in the past 30 days.

The FDA has also announced that it is investigating 35 cases of epileptic seizures after vaping, but the results have not yet been published. Officials say it is unclear whether electronic cigarettes have caused these cases.

Juul’s revenue is expected to reach $3.4 billion this year, almost three times that of last year, according to Bloomberg. Juul’s revenue in the fourth quarter of last year was $424 million, down 2.5% from the previous quarter, with an adjusted loss of $70.4 million and a loss of $17 million in the previous quarter.

Although regulation is being strengthened, Juul sees this as a small setback and tells investors that international market revenue will help offset the downturn in the U.S. market.

Last November, Juul entered the European market in Germany, before this, Juul had already entered the UK.

It’s obvious that Juul has begun to replicate the success of the U.S. market and gradually entered the more developed European countries.

Best Vaping Girls 2019 Vape Hk

China becomes Juul’s first stop in developing countries

According to the global market, the global vape market in 2017 is about 17.7 billion US dollars, accounting for 2.54% of the global tobacco market.

According to the National Adult Tobacco Survey Report of 2018 edition, there are about 320 million smokers in China, accounting for one-third of the world’s smokers. The number of users is relatively large, but most of them are still traditional tobacco users. China’s electronic tobacco market is still in the development stage.

At present, the supervision of vapes in China is at the stage of government unregulation, industry disorder and product non-standard. Especially, the supervision of vapes is blank at present. Heat not burn products are included in the national tobacco monopoly control. It is illegal to buy and sell IQOS in China.

Vape hk learns from sources that Juul has started planning to enter China since the beginning of the year, and has begun to entrust headhunting companies to identify management teams in China. It is known that Juul has entered the stage of CEO assignation.

According to sources, Juul headquarters does not know much about the Chinese market. They intend to use China as the first test station for developing countries. If they succeed, they will continue to enter other developing countries. If they fail, they will focus on developed markets such as Europe and the United States.

Vape hk learns that Juul is cautious about entering China. Especially after government publicly criticized e-cigarettes at CCTV 315 party this year, Juul’s pace slowed down significantly and he began to hesitate whether to venture into the Chinese market with unknown policies and unknown users.

At present, China’s e-cigarette market is in its infancy, including RELX, Linx, Flow, Moti and other Chinese domestic online influencers brands, and there are many more other e-cigarette brands in Shenzhen that are making a fortune in silence.

It is reported that the latest round of financing valuation of RELX has approached US$3 billion, and RELX said in its BP to investment institutions that it is trying to become the world’s largest e-cigarette brand.

Juul’s entry into China will face competition from many domestic brands, but as the market is still in its infancy, Juul’s resources, capital and brand strength will determine that it is still a high-quality player.

Juul’s patent for nicotine salt in electronic cigarettes may be a killer weapon against domestic brands. In January 2018, Juul’s brand PAX Laboratory announced that it had won a patent for nicotine salt in electronic cigarettes in the United States.

But what makes Juul headquarters uneasy is that the development of international Internet companies in the Chinese market has almost all ended in failure, from the earliest Yahoo, Google, eBay, Uber, to the latest Amazon’s withdrawal from China, which makes Juul headquarters uneasy.

The localization of Internet products and consumer goods needs to be based on a full understanding of local users. The strategy of global replication may not work in China. Especially in the new tobacco market of electronic cigarettes, the country is in a wait-and-see state and belongs to an industry with high uncertainty.

Juul’s Way Choice of Entering China

Vape hk analyses Juul’s choice of ways to enter China.

One is to establish new companies directly in China, Juul authorized technology and brand, operated by domestic wholly-owned companies, injected capital from headquarters to expand the market, and can attract investment institutions to invest in Chinese companies at an appropriate time. Juul’s valuation in the United States is too high, and it is too difficult to operate as the main body in the new market. As to relevant cases, you can refer to the joint office brand WeWork to enter China and finance China’s business independently.

The second is to establish a joint venture company with the new vape brand in China to authorize the brand and technology. This brand is suitable for watching and testing. The localized vape brand has certain market promotion ability and understanding of the domestic market. It is easy for headquarters to obtain information. It belongs to the strategy of “walking while watching”. Once the model runs through, it can invest on a large scale, and once the model is unknown, it can withdraw. The joint venture company is a defensible choice.

Third, establish joint ventures with domestic cigarette companies or tobacco label companies to authorize brands and technologies. This is a conservative practice. Traditional Chinese tobacco and tobacco label companies have begun to develop new tobacco markets. According to Vape hk statistics, since 2017, local Chinese tobacco companies have begun to apply for new tobacco patents, and have begun to test new tobacco products overseas. In cooperation with China Tobacco or tobacco label companies, it will be safer to control policy risks, but the disadvantage is that traditional Chinese tobacco companies have less knowledge of the preferences of e-cigarette users and marketing.

Once Juul enters China, the pressure on domestic e-cigarette brands will begin to increase. After all, the ancestors have various intellectual property rights, such as patents, and their mature product research and development system will be a great pressure for the current domestic e-cigarette start-ups with a low threshold.

But with uncertain policies and sufficient knowledge of the needs of China local users, Juul is not fully sure if he will succeed in entering China, which will be a protracted war once he is dragged down by the Chinese war.

How serious will the USA tariff increase affect the vape export in China?

On May 9, 2019, the U.S. government announced that, since May 10, 2019, the tariff rate on goods imported from China with a list of $200 billion increased from 10% to 25%.

Source: Trump just raised tariffs on Chinese goods. Here’s what that means

The above measures led to the escalation of Sino-US economic and trade frictions, violated the consensus of the two sides on resolving trade differences through consultation, harmed the interests of both sides, and did not meet the general expectations of the international community. In addition, tariff levy has been opposed by local technology industry and traders, because the list published earlier by the US side covers not only smart watches of Apple, Fitbit and other brands, Bluetooth devices and other 3C products, but also major Sino-US foreign trade items such as bicycle safety helmet, baby car seat and electronic cigarette.

The tariff rates of the vape industry after the levy are as follows:

The tariff rates of the vape industry after the levy are as follows:

Previously, the United States imposed tariffs on Chinese goods worth about $200 billion on September 24, including electronic cigarettes.

The purpose of tariffs is to “tax products imported from other countries, increase the competitiveness of American products and create domestic economic value”. But in an industry where almost all products such as electronic cigarettes are made in China, no American manufacturer can solve the current problems faced by the electronic cigarette industry.

Because there are no large number of electronic cigarette manufacturers in the United States, this tax will only lead to the inability of American importers to survive, the reduction of products purchased by consumers or waiting to be purchased, the dilemma of retailers, the reduction of products purchased by distributors and importers from Chinese enterprises, the reduction of R&D budgets and layoffs by factories in Shenzhen, and ultimately only a large group of American electronic cigarette users will be punished.

It is difficult to localize vape industry in the United States

The United States does not manufacture large-scale vape devices except vape juice.

As for why the United States does not transfer electronic cigarette technology from China? This issue has been discussed in previous articles. From a technical point of view, China currently has the largest number of electronic cigarette manufacturers. Their R&D capabilities and product quality are at a high level. At present, you can see some famous manufacturers’ vape devices, such as Silmo, SMOK, Joyetech and Eleaf, which not only come from China, but also produce vape for over 10 years.

China not only has abundant resources and technology, but also includes professional product designers and engineers. However, this manufacturing experience and development base is impossible for the United States to achieve self-sufficiency in a short time, let alone the related parts supply chain and processing chain.

From the point of production cost, if the manufacturing industry is set up in the United States, it will concentrate on the local market at most, because the labor cost in the United States is extremely high. If it is processed and sold to other markets, it will not meet the economic benefits, and the cost of raw materials acquisition is much higher than that in China, no enterprise will be willing to invest in the electronic cigarette manufacturing industry at this time point.

It is difficult to localize vape industry in the United States

The impact on the vape industry is unpredictable

If tariffs keeps there, the prices of lithium-ion batteries, e liquids, cartridges and other products will increase. For American smokers, using electronic cigarettes is a heathy thing as well as a cost-saving thing. However, driven by the increasing use costs brought by tariffs to consumers and the severe policies of FDA, it is likely to force American electronic cigarette users to start using traditional cigarettes again.

“This is undoubtedly the most uncomfortable situation of the American Electronic Tobacco Association, and the double pressure is likely to lead to a recession in the already reduced smoking rate.”

Geoff Habicht, president and founder of Smoking Vapor, once said:

“The impact of tariffs varies from product to product, especially for low-profit products. Faced with the impact of a large and comprehensive tax rise, we have to survive. Because the cost of products and retail prices are already very tight, retail prices will rise by another 15-20%. For higher-profit products, 25% tariffs may only increase retail prices by 8-10%.”

Although the rise in US tariffs is good in the long run, it forces Chinese enterprises to upgrade their industries, focusing on the process of brand and intellectual property rights. However, it is worth noting that the electronic cigarette industry may become a victim of tariff competition. After all, tariffs will lead to higher retail prices and lower consumers’willingness to buy, followed by lower sales, from which distributors and wholesalers struggle to reduce trade orders to Chinese factories, and finally even USA domestic e-cigarette manufacturers are harmed.

Therefore, if enterprises want to survive from this disaster, in addition to gradually shifting the focus of the market to other developing e-cigarette market, they may also have to develop towards standardization, regulation and specialization. Only then can Chinese vape manufacturers have the opportunity to minimize the risk of the whole cross-border business.

Chinese vape market is destined to be dead

Chinese vape market is going extremely hot in 2019 which raised the attention of the government. However, one of the main tax income of the Chinese government is the monopoly sales of tobacco. When the vape markets eat up more and more sales of the tobacco, the government will strike it down hard.

 

Chinese vape enterprises numbers has increased from 858 to over 7,000 since 2014, and the average enterprise’s size is going as big as 10 million yuan average company. Large and famous capital companies are investing heavily on vape companies in recent few years as well, which boost the development of vape companies at the same time. A famous vape company sold 1 million sets of vape device in just 2 years in China, which annoyed the tobacco companies in China much.

As we all know, Chinese tobacco companies owned by government generate tax income as high as amazing 1 trillion every year.

Under this background, whatever the vape company is, or however much tax the vape company generates, it’s useless compared to the giant tobacco company. And the tobacco companies is strong enough to move the government’s hands to punish the tiny vape companies in their eyes like killing a fly with a flyswatter.

It’s a prelude on Chinese’s CCTV that the central television criticized the vape companies are selling their products to teenagers in the 315 Party, one of the most famous TV programme on revealing harmful products and scams. What’s more, it stressed the dangers and health hazards of vaping. It implied vape companies like Relx though didn’t mention its name.

All of the vape enterprised selling vapes in Chinese vape market is on a ship destined to be drowned. And the overseas market is the true savior of Chinese vape companies.

 

Related: Why Is The CDC Lying About E-Cigarettes?

smoking and vaping among high school students

US Companies Filed a 337 Investigation Application for Chinese Vapes

US companies filed a 337 investigation application for Chinese e-cigarette products

According to the news released by the Ministry of Commerce, Uul Labs, an American company, filed an application with the US International Trade Commission (ITC) under Section 337 of the US Tariff Act of 1930, accusing the United States of exporting, importing in the United States, or E-cigarette products and their components sold in the United States infringe on their patent rights, requesting ITC to initiate 337 investigations and issue limited exclusion orders and prohibitions.

Speaking of the 337 investigation, it can be described as “famous”. It is still very strange to e-cigarette practitioners. However, in other industries, many people are no strangers. A large number of well-known domestic enterprises have been investigated by 337, such as Huawei, ZTE, Lenovo, Dajiang, Sany Heavy Industry, Baosteel, Shougang and so on.

What exactly is the “337 investigation”? It is understood that the US “337 investigation” was first named under Section 337 of the US Tariff Act of 1930, then it has undergone several major revisions.

Under the terms, the US International Trade Commission has the power to investigate complaints about patent and registered trademark infringement, as well as investigations involving the misappropriation of trade secrets, commodity packaging infringement, imitations, and false advertising.

A previous investigation of 337 steel companies

According to the relevant procedures, the US International Trade Commission must determine the target time for the final ruling within 45 days after launching the “337 Investigation” and complete the investigation as soon as possible. Usually, the case needs to be decided within one year. If the company involved is found guilty of a violation of Section 337, the US International Trade Commission will issue an exclusion order and a prohibition order for the relevant product. This means that the products involved will completely lose the qualification to sell in the US market.

According to the report, six e-cigarette companies including Shenzhen Yubai Technology Co., Ltd. and Shenzhen Yibo Electronics Co., Ltd. were involved in the case.

However, at the “Sino-US Intellectual Property Protection and Anti-dumping Legal Practice Summit Forum” held in November 2012, there was a speech that China has become the biggest victim of the US “337 investigation“. Among the relevant cases, the rate of court failure of Chinese companies is as high as 60%, far higher than the world average of 26%.

The Reasons Why Chinese and Americans Choose Vape are Quite Different

China is the world’s largest producer of e-cigarettes, no one; the United States is the world’s largest consumer of e-cigarettes, no one. But don’t think that the reasons why Chinese and Americans choose e-cigarettes are the same! According to the survey data, you can find the difference.why vape

The Top 6 Reasons for Vaping

The first reason why Chinese people choose e-cigarettes is that they are healthier than ordinary cigarettes. The top three reasons are: healthier than ordinary cigarettes, help to quit smoking, and not affecting others.why vape

Reason 1: Healthier than cigarette

Reason 2: Quit smoking

Reason 3: Care about others

The first reason Americans choose e-cigarettes is the social image. The top three reasons are: social image, help to quit smoking, and indoor use.

The selection ratio is also very different! The first reason why Chinese people choose e-cigarettes is 51%; the first reason why Americans choose e-cigarettes is 37%.

why vape

Reason 1: Social image

Reason 2: Quit smoking

Reason 3: Indoor use

Therefore, the experience of developing foreign markets should never be blindly applied in the domestic market; the experience in developing the domestic markets should never be blindly applied in the foreign markets!