Analysis The Development of Electronic Cigarette Industry in Europe and America

Due to the different regulatory policies on electronic cigarettes, there is no consensus in the world. However, according to incomplete statistics, electronic cigarettes can be sold in more than 50 countries and regions. Compared with traditional cigarettes, the use of electronic cigarettes is generally encouraged in various countries. At present, Australia is speeding up the testing of electronic cigarettes. If it proves safer than traditional cigarettes, the government will consider it as a permanent alternative to cigarettes. If implemented, Australia will become the first country in the world to ban cigarette sales.

Taking the North American market as an example, before 2010, the U.S. Food and Drug Administration recommended that the electronic cigarette be managed as a drug, and suggested that the U.S. Customs ban the importation of electronic cigarettes from abroad. Therefore, the electronic cigarette manufacturers to the United States federal court proceedings. After the United States federal court announced that FDA lost the lawsuit, the electronic cigarette in the marketing and channel are ushered in a qualitative breakthrough.

Publicity, open and extensive marketing, greatly enhance product awareness. At present the electronic cigarette ads are not strictly prohibited, but part of a provision to prevent broadcast in prime time; compared with the traditional strictly prohibited cigarette advertising, publicity way of electronic cigarette is more diverse; greatly enhance consumer awareness for new things. Channels, the product online retail channels widely spread, to promote the convenience of purchase. The convenience stores in the United States can buy electronic cigarettes such as BLU, NJOY, LOGIC and so on. The channel covers a wide range, which stimulates consumers' interest in purchasing, and sellers are more likely to obtain them.

Because there is no foreign tobacco monopoly system, coupled with the traditional cigarette large scale, good profits, tobacco sales by the state unified supervision, therefore, the size of the enterprises can be produced by the sale of tobacco products, the large cigarette companies ignore the new growth point of the electronic cigarette market. And small enterprises to seek development, the first discovery of this big cake, quickly seize market share. With the rapid development of the electronic cigarette market, the international tobacco giants have also quickly cut into the fast-growing market by purchasing electronic cigarette leading enterprises. Such as Laurie Ladd company in April 2012 acquired a leading American electronic cigarette production enterprises (BLUECIGS), October 2013 and continue to acquire a UK company called SKYCIG electronic cigarette company, to expand its share in the global electronic cigarette market. At present, North American market concentration is high. As of the three quarter of 2013, the acquisition of Laurie Ladd's BLUECIGS market share has risen to 49%, replacing the original market share ranked first NJOY quickly with its 100 thousand stores sales channels, became the first brand of electronic cigarette. Followed by NJOY (22.6%) and LOGIC (17.1%).

Because the reaction principle is different with the traditional electronic cigarette cigarette is not essentially the same taste, there are some differences, but the electronic cigarette manufacturers through the continuous improvement of oil formulation and electronic atomizer, the electronic cigarette taste closer to the traditional cigarette, bring a better consumer experience.

As the market share of the first Blu by actively improving the taste and appearance as well as adding new features (such as social function), coupled with the rapid expansion of the channel (retail channel by 12 thousand rapid expansion to now more than 100 thousand), driven by revenue growth of $50 million in 11 years to 12 years of $150 million (only 13 years before the three quarter revenue reached $177 million), the segmentation of the electronic cigarette market, nearly half of the cake. For example, Japan Tobacco International and Ploom, headquartered in San Francisco, launched a revolutionary, low-temperature, non flammable product in May 2012 in Austria, South Korea, Italy and Japan, and other non American homes. Low temperature non combustion technology makes this tobacco atomizer between traditional tobacco and electronic cigarette, electronic cigarette with (without burning, do not produce carbon monoxide, tar and other harmful substances, and does not generate secondhand smoke) and traditional cigarettes (excluding electronic equipment, tobacco use does not change the traditional cigarette taste) advantage, segmentation, fast to seize market share.


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