The largest annual trade exhibition in the e-cigarette industry, held in Dubai from June 12th to June 14th, has come to an end. This is a successful VAPE exhibition in the e-cigarette industry this year, which undoubtedly injected a shot in the arm for Chinese companies that have been relatively sluggish recently. The lively scene and rich products have reignited the passion of Chinese e-cigarette companies, which is beneficial to the industry and undoubtedly has a good driving force for the second half of 2024.
World e-cigarette users need Chinese companies to provide them with products that meet their current consumption needs and provide a better experience. Chinese e-cigarette companies also have a responsibility to produce products that meet market demand and lead global distributors to a new height in the development of e-cigarettes during the period of strict management and turbulent landscape of e-cigarettes worldwide. If that's the case, it's like a historical development opportunity.
But through the phenomenon of the Dubai e-cigarette exhibition, the author suddenly thinks: Who is leading the world of e-cigarettes? Is it definitely China? Previously, the first atomized e-cigarette was born in China, and at least 85% of the e-cigarette supply chain was in China. When the seller's market was in China, it was well deserved that China dominated the world of e-cigarettes. The current industry has transformed into a buyer's market, and the bustling Dubai e-cigarette exhibition has given me another feeling: Chinese e-cigarette companies are working for the world, rather than leading the world. There are three opinions:
1. This year's Dubai exhibition is actually a "Chinese e-cigarette, 2024 China New Product Release Exhibition" led by foreigners in Dubai
A company participating in the exhibition, with booth fees ranging from tens of thousands to hundreds of thousands. The scale and atmosphere of this exhibition were successful, and the organizer should have made a lot of money. However, the author is thinking: why did Chinese e-cigarette companies basically flock to the Dubai exhibition? I think there are probably not many places to roll, and the Middle East is currently a relatively good business environment for e-cigarettes. The European market has become increasingly dominant, while the competition in the US market has become more intense. More Chinese companies can only withdraw. The Russian market is good, but policies are strict, and logistics is a headache. Therefore, the Middle East is the most ideal and competitive place in everyone's hearts. There are still opportunities for product form and market development in the Middle East, and companies have high expectations for Dubai as a transit link.
But if Chinese companies concentrate on the Middle East, do most companies really have a chance? At the exhibition, there was a wide variety of products, and everyone was trying their best to promote new products. However, the actual classification they saw was only two points: there were more ways to play disposable products, and they added more value. They had done their homework on disposable products in the Middle East region, which is suitable for sales; Another thing is to see the development trend of oil injection equipment, and the sensory industry products have undergone a major upgrade. But there are only a few products that have made their debut due to technological innovation and different product concepts. Most exhibitors still have similar product directions, and while showcasing on site, they have already felt the atmosphere of internal competition. The trend of oil injection equipment development has shown oil merchants a real opportunity, but this opportunity belongs to global oil merchants.
2. The main audience for this Dubai e-cigarette exhibition is still local B-end users
There are not as many European and American customers as imagined, and it is normal to think about it. The European and American e-cigarette market is relatively mature, with major channel and trading companies operating according to their own layout and having absolute say in their own territory. There are also more and more independent brands in mature markets. Because they control the channel and users, they will naturally have to sell their own brand products to gain greater profits and users, and these are actually thanks to the growth and feeding of Chinese enterprises.
What's different is the emergence of these independent brands. Large channel and trading companies have firmly grasped the market and users, while Chinese companies and brands are gradually losing their market dominance, leaving behind the "regional market leadership" we see today. The reason for their leadership is also because their products are currently hard currency and can be immediately monetized to make money.
The internal competition of Chinese enterprises in overseas markets actually provides opportunities for the development of local independent brands overseas. If Chinese e-cigarette companies cannot take root and develop overseas, then the situation of Chinese e-cigarette companies working in overseas markets will continue.
3. The policy of strict management of electronic cigarettes in various countries actually has a tendency towards self-interest
Beneficial to the development of domestic enterprises, which is in line with national interests. When an industry is specific to a country, it is normal to allocate and even determine roles based on the interests of the country. For enterprises to dominate this industry in a country, they must take root in the country, contribute to the national interests, possess core industry technologies, protect intellectual property rights, stand at the top of the industry's food chain, and at the worst, have fan users.
The trend of strict policy regulation has brought about changes in product structure, and as a result, the pattern of the e-cigarette world is undergoing changes. From an industry perspective, this structural change in products is inevitable. The world of e-cigarettes requires global cooperation and division of labor, ecological balance, and the role of Chinese e-cigarette enterprises in the world is becoming increasingly clear. What will not change is the equipment outsourcing factory and supply chain output; The fiercely competitive e-liquid and brands still need to strive for a larger market share, after all, who has users is the true owner of the e-cigarette market; Technological breakthroughs and possessing core technological intellectual property rights are the core values for Chinese enterprises to lead the world of electronic cigarettes. From the invention of electronic cigarettes in China to the cultivation and service of global users today, I believe that Chinese electronic cigarettes should not only play the role of OEM.
The goal of running a business is to make money, which is our duty, but the progress of a company cannot be separated from the growth and development of the industry. At present, electronic cigarette companies are mostly engaged in global international trade. As the largest exporting country of Chinese electronic cigarette products, under the pressure of domestic and foreign competitive markets, enterprises should unite and consolidate China's position in the electronic cigarette world, establish the image that electronic cigarette core countries should have, first have the momentum, and then have their own truly differentiated competition in the market, rather than going from home to abroad. If the Chinese e-cigarette industry can continue to dominate the world of e-cigarettes, then every enterprise can become a true overseas winner.
