China Tobacco's first e-cigarette launched on the Internet, leading the e-cigarette sector to soar

On May 20, the e-cigarette board of Hong Kong stock continued yesterday's rising trend. By the end of the day, Huabao international was up more than 24%; China's Bolton rose more than 8%; China Tobacco International and SIMORE international rose more than 4%.

According to market news, Bude and Yunnan Zhongyan jointly produce new electronic atomization cigarette small yellow croaker, and the small yellow croaker has started production and will be on the market soon.

Some people in the market pointed out that if the rumor is true, it means that the national team will officially compete, which will greatly enhance the certainty of the e-cigarette industry.

In fact, rumors about China Tobacco's entry into the field of e-cigarettes have been heard from time to time. As early as 2018, it was reported that Yunnan and if Tobacco Co., Ltd. of South Korea signed a distribution agreement of MC (my cigarette my choice) brand low-temperature heating non burning cigarettes in Kunming.

In addition, many private enterprises have entered the track, such as Yueke, njoy, etc., and there are many niche brands. In addition, there are no relevant regulatory measures and content bill before, which leads to chaos in the production and operation, advertising and other aspects of e-cigarette, and the age of e-cigarette users tends to be younger.

The state tobacco monopoly administration and the State Administration of Market Supervision issued a notice as early as 2019, requiring that e-cigarettes should not be sold to minors, sold through the Internet, or advertised through the Internet.

In March this year, the decision on Amending the regulations for the implementation of the tobacco monopoly law of the people's Republic of China (Draft for comments) was issued, which states that new tobacco products such as e-cigarettes shall be implemented according to the relevant provisions on cigarettes in these regulations. The regulation means that the era of low threshold and free operation in the past is completely over, and the e-cigarette industry has entered the scope of permitted operation.

At the same time of cleaning up and standardizing the industry in a large scale, the relevant listed companies also began to take action. It is reported that Tianyin holdings is the national representative of all products of platinum electronic cigarette.

In addition, another 3C Guobao giant in China, aiside, has also cooperated with Yueke as early as possible, creating the data of "1000 stores, 50% repurchase rate and 8-fold growth of sales volume" in only half a year. In the first three quarters of 2020, the sales volume of "No.1 Machine" (a subsidiary of aiside) accounted for 15.1% of all brands of Yueke, making it the largest agent of Yueke.