LINX Vape CEO interview – To vape everything after 4th round of financing

Landong recently conducted a one-on-one interview with Zhang Jinyuan, CEO of LINX vape brand, at the New Consumption Summit of Z Era in 2019. We talked about the development of the electronic cigarette industry and LINX.

This is also the first issue of “100 People in vape industry” which is a personal interview column launched by Landong New Consumption. We will select the best ones in the upper, middle and lower reaches of China’s vape industry chain for interviews, in order to show the entrepreneurship ecology of China’s vape industry in a more comprehensive way.

LINX was founded in January 2019 by former Uncle Tongdao blog CEO Zhang Jinyuan and other founders. Now it has obtained four rounds of financing. Investment institutions include CICC Huicai and so on. LINX belongs to one of the social media influencer brands founded this year, ranking sixth in the JD mall 618 best-selling vape brand list.

LINX Vape CEO

Zhang Jinyuan gave a speech and shared it in the summit in the morning. Unlike the traditional speeches on other places, Zhang Jinyuan used only one PPT, but he did not advertise directly for the company, but described some prejudices faced by the whole electronic cigarette industry.

In his words, the outside world is full of curiosity about electronic cigarettes as a new industry. It also encountered many prejudices.

He believes that electronic cigarettes are particularly interesting things, the essence of which is really brand-new consumer goods, and electronic cigarette technology is also new. In the past, it was difficult to find products similar to electronic cigarettes, which is why today a lot of capital is willing to invest it. The essential reason is that there is an opportunity to recreate an industry really, not simply upgrade it.

As for market judgment, Zhang Jinyuan believes that in the next three to six months, new entrepreneurs will continue to emerge and new brands will continue to pour into the market. Today’s user market is still very small. Although we can see the explosive growth of JD mall data, it is a very small market compared with the market of mass consumer goods. How to occupy customers’ mind and cognition is the most essential problem of this matter.

Zhang Jinyuan objected to calling the products as an electronic cigarette. It’s called electronic vaporizer in his mouth in public. He argues that the word e-cig limits the imagination of the industry, while electronic vaporizer provides a device the meaning of atomizing or vaping everything, providing a new entrance for humans beyond the traditional eating, drinking and playing.

He believes that the electronic atomizer is a new way to please and entertain oneself besides eating, drinking and playing. What LINX needs to is be the entrance, which is a much better item than addictive consumer goods. It’s a way to atomize everything, not a lighter with a specific ingredient.

Zhang Jinyuan accepted an interview with Landong “100 People in vape industry” afterwards, and we arranged the form of simple questions and answers to facilitate better reading.

Landong: Why do you think that calling vape as electronic cigarettes makes the market smaller?

Zhang Jinyuan: I think that nicotine-containing vapes will eventually enter a strong regulatory category, rather than weak regulation. Strong regulation comes from licences, or products classified as certain state-owned or state-owned backgrounds. But we should be prepared for this, rather than be blindly confident that they will not be regulated. In addition, both capital and investors come to the vapes for addictive feature. This concept can get more money, and its product characteristics make it better used. When the base number reaches a certain level, qualitative change will happen naturally. We want to welcome such qualitative change well.

Landong: The atomizer becomes an entrance, and the e-cig will be just one of them. Will you produce more “content” to atomize? This is an interesting idea.

LINX Vape CEO

Zhang Jinyuan: I think there will be a path for the development of this industry. Everything is natural at first. As long as he is a practitioner in this industry, he absolutely can come up with it in five minutes. For example, to vape areca nut, I don’t need nicotine salt anymore. Arecoline still has some characteristics of nicotine, which can be thought of immediately by a slight think. Think again, I make gum to use mint which’s refreshing and refresh my mind. This is something we can see in the next few months. It’s all the beginning.

Landong: Back to LINX’s specific situation, how many rounds of financing have been completed now?

Zhang Jinyuan: Four rounds have been completed.

Landong: Where are the funds currently used?

Zhang Jinyuan: The two most important uses of funds are product research and development. This is the most fundamental thing for an enterprise. It is how to continuously optimize your products, adjust your formula and optimize this matter. At the same time, there is an investment in brand building and sales channel building, these two things are mutually reinforcing.

Landong: Will LINX hold music festival marketing?

Zhang Jinyuan: We find that most brands will emphasize some common labels. The first one is the product labels. The second one is the crowd labels. That is, I am more fashionable and cool. So I want to go to music festivals and night clubs. I want to cooperate with the best night clubs in China. We want to cooperate with the best music festivals in China, but this is also a very inefficient way. For example, we may found there may be five brands of electronic cigarettes in the festival, but users are not loyal at present. For LINX, it is more desirable to establish channels that it can control. We make more in-depth investment in data analysis and CRM. For example, LINX has entered 2000 nightclubs in Shanghai and Beijing, grabbed data through a payment system and a backstage CRM management system, and then conducted research and analysis.

Landong: What do you think about the balance between online and offline sales in the future, or what are your priorities?

Zhang Jinyuan: I think if we take this matter apart, offline will be the biggest source of GMV. Every consumer GMV comes from offline, but online will be your core source of profit. Now we regard offline as a traffic capture tool, or a sample source for data acquisition, because the most difficult thing for us to do data analysis is to find the sample source. There are too few samples online. In this case, the core strategy of offline is to move forward. We occupy the market share with shorter time and higher efficiency, so that more samples can enter the database, but the ultimate profit must come from online user maintenance.

Landong: Just past 618, everyone is rushing to rank high online. What kind of fluctuations did you experience when you observed the whole situation on that day?

Zhang Jinyuan: When we observed the situation that day, we had been communicating closely with our operation team. We can see that, first of all, this number is surprising to us according to the JD mall report, there are two surprises.

Firstly, the overall growth of e-cigarettes is not as good as we expected. We recall that 618 in 2018 increased six times as much as that in 2018. What is the situation of 618 in 2018? In 2018, the whole electronic cigarette industry lurked underwater, did not rise, did not break out, nobody made a brand. At the same time, most of today’s visible brands did not enter, there was no Moti, vvild, all of these did not exist. But after so many people entered, the market explosion even spread widely, it increased six times only. This data itself contains a lot of interesting data. It needs our own judgment to sort it out.

Second, we see that the industry is competing and ranking in a very strange way. I think this is a very immature performance of the industry market, because we can acknowledge that there is no final effective recognition in the competition for second or third or fourth places. We can only compete for recognition through inefficient means or even ridiculous means. I think this is the industry’s sadness.

Editor’s Note: He refers to the way e-commerce business do fake reviews to boost the rankings.

Landong: What kind of trend do you think the whole industry will take from the end of 2019? Will any startups collapse before Double Eleventh shopping festival (11th November)? Will the top five or eight finally be revealed by the end of 2019?

LINX Vape CEO

Zhang Jinyuan: I think there must be brands collapse before the Double Eleventh , because the input-output ratio of the whole industry is not proportional. We can see from the JD mall data that the market growth is not as expected, or not as we think, if some brands spend too much money on non-hematopoietic projects, they will fall very early. According to what we know, some well-known brands will fall before Double Eleventh. Secondly, I think the real outbreak of the electronic cigarette industry should be after the formal conclusion of national regulation.

Landong: What do you think of the national standard for electronic cigarettes that may be introduced this year?

Zhang Jinyuan: I think the national standard is the most important link, but not the whole industry, because the national standard stipulates products, but there is no regulation institute. Once the conclusion is reached, we can talk about the top three or the top five. For example, it’s hard to imagine a company wants to be listed on the stock market when they’re faced with such big policy uncertainties. The second is that the whole user market may really turn from wait-and-see to fission and outbreak. It must be after the national standards come out, capital will enter the market more quickly and users will fission more quickly, and then it will start. At that time, everything is possible, even if you re-establish a brand at that time.

Linx pod system starter kit review – One-third price of RELX with 1 device and 2 pods

LINX, an online influencer brand, announced the release of its second generation of vape product – its third new product on May 23th. And LINX started the pre-sale and discount sales on JD and was officially launched online on May 26.

LINX vape was founded in January 2019, and was initiated by Zhang Jinyuan, the former CEO of Tongdao Uncle. The co-sponsors include Li Yan, chairman of Micromedia Holdings, Zeng Hang, Junwu sub-level CEO, Sha Xiaopi, and other well-known new media. It has completed the financing of ten million yuan by Huicai Private Capital and other institutions at present.

LINX standard set of pod vape with one device and two pods, priced at 99 yuan, when RELX is 299 yuan, 1/3 of RELX’s price. For the first time, the price of the pod vape with different pods was less than 100 yuan, which may be a signal of the price war for the electronic cigarette industry.
I got several product plans from the official.


One Device Two Cartridges Standard Kit


Extremely Simple Kit: 1 Device, Two Pods, USB Charging Line


Eight Tobacco Flavors: Classic Tobacco, Nut Tobacco, Ice Drop Coffee, Zero Black Ice
Summer green mango, lime grapefruit, green bean ice, mint cool


We got Linx vape products for the first time, and now we’ll do the unboxing review and try them out first.


I received the five cartridge kits, and the packing box is very small, the thickness is about 15 mm, which can be handheld.


Relevant product information on the back


This is the mung bean ice pod suit.

There are warnings and manufacturer information on the back of the pod, as well as nicotine content.


After randomly unpacking one package, a row of four pods.


After opening the standard package, you can see that all the items are in front of your eyes, device, charging line, and two pods. The instructions are at the bottom. Pod size is 11*7.7*101mm


The cartridge changer has two interfaces.


Tail charging interface, common USB interface, battery storage 230mAh.


Disassemble the pods and you’ll see a leak-proof cover. You can see the vape capacity. Its standard is 0.7ml.


When the leak-proof cover is removed, the pod structure can be seen. The fibre cotton core is used as the atomizing core.


Loading is very simple. Remove the leak-proof cover, push into the cartridge changing groove, and assemble it with a slight press.


Connect it with the charging cable to the computer or charging port then it can start charging. The white indicator indicates more than 50% of the electricity, if it’s blue, between 20% and 50%, and if it’s red, it’s less than 20%.

Flavors can be distinguished by the color of the pods, but they are not obvious.

It’s easier to distinguish between the color of the pods and the color of the suction nozzle. Sometimes the office worker may not know what he vapes when he is busy. but the user experience may be better if the flavors are more distinguishable.

When vaping, you can produce a larger amount of smoke when little strength in vaping. And there is the buzzing sound of pods when vaping.

Verdict:
Linx new cartridge charging design is very simple, good grasp feeling with texture, easy to carry, smooth vaping, rich flavors types, various choices. With its competitive price advantage of 99 yuan, this new product would go popular without doubt.

However, we haven’t tested it for enough time so we are not sure if the pods leak or not, the battery is durable or not, we’ll review it later and keep updating.
Some suggestions:
1. Packaging opening up is slightly inconvenient. It needs to be assisted by sharp tools such as scissors. Some lead like on the cigarette box packaging will facilitate users to in unboxing very much.
2. The device color is relatively single. It would be much better if it provides more fancy choices of the device, after all, not everyone likes darker colors.
3. The color distinction of the pods. If the color of the leak-proof cover and the suction nozzle can be matched, the user can easily distinguish what flavor is being used.
Off-topic remarks: China’s e-cigarette market is only 4 billion yuan at present, and the user penetration rate is less than 1%. Brands are racing around, but the core path is still offline. At present, Vapehk readers have left messages that they have found the traces of Linx in Shanghai nightclubs.

Pod vape juice using pure natural biological PD oil as base solution is about to launch

The vape juice base liquid in the market mainly uses VG (natural vegetable glycerin) and PG (propylene glycol) , which is then heated through the vape stick atomizer at present. The PG/VG hybrid electronic e liquid was developed and invented by Yao Jide, CEO of Hangsen Group, using natural plants as raw materials. It was first developed and invented in 2004.

However, the new vape juice based on pure natural bio-PD oil proposed by Xijian Biotechnology may challenge the industry leadership of PG/VG hybrid e liquid.

Xijian Biotechnology will abandon the traditional method (PG/VG) and replace it by PG as carrier base produced by chemical pyrolysis or synthesis, it will use corn syrup to ferment corn starch to synthesize pure natural PD base fluid in order to achieve unique taste base production. Simply speaking, this is an evolution from chemical pyrolysis base fluid to pure natural base fluid.

Xijian Biotechnology is developing and building a brand new e liquid iOil recently, which will bring China’s first series of pod vape products based on pure natural bio-PD oil. The goal is to introduce the world’s most advanced e liquid technology and quality products into China’s vape juice industry.

On April 17, Zhang Jinyuan, founder of Lingxi LINX vaporizer, the electronic cigarette influencer brand, revealed that Xijian Biotechnology is a joint venture company established by Lingxi and Jianma Biotechnology, a company owned by Hanma Group, aiming to change the current situation that most of the vape juice enterprises in the market use industrial pyrolysis PG oil as vape juice. The two sides said that the joint venture company, Xijian, will strive to bring the highest safety standards to electronic cigarette consumers, in order to release the unique taste changes and completely get rid of the stinging throat and cough brought by traditional ordinary vape juice.

Lingxi is an online influencer e-cigarette brand jointly created by five top self-media tycoon, including Li Yan, chairman of Micromedia Holdings, Zhang Jinyuan, former Uncle Tongdao, Zeng Hang, from Junwu. It was founded in January 2019 and has received tens of millions of yuan of capital investment such as CICC Huicai.

biological PD oil

Jianma Biology was founded by Hanma Group, the leading enterprise covering the whole industrial chain, and Ruixin Shunying, Communist Youth City.

Hanma Group is a legitimate investment group company in the whole industrial chain of industrial hemp in China. It carries out the work of industrial hemp breeding, cultivation, extraction, research and development, production and marketing worldwide. Hanma Group is the only one with Registration Certificate of Industrial Hemp Seed Varieties, Industrial Hemp Planting License and Industrial Hemp Mosaic Processing License. The company has obtained the approval of the public security department on the research and development, production and sale of cannabis bisphenol terminal products. Hanma Group is the founder of China Industrial Cannabis Industry Alliance, a member of European Industrial Cannabis Association, and also a member of American Cannabis Association.

Finally, let’s wait and see how the vape juice based on pure natural bio-PD oil will affect the vape industry.

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