On July 10, the first e-cigarette, Sizemore International, went public on the Hong Kong Stock Exchange. It opened 125.81% on its first day of trading, up 150% by the end of the trading day, with a total market value of 178 billion Hong Kong dollars. The listing of Simore clearly gave the e-cigarette industry a shot in the arm, related concept stocks lifted the limit tide, the heat of e-cigarette has also been ignited, many e-cigarette practitioners shouted: the golden age of e-cigarette!
For the e-cigarette industry, “policy supervision + product upgrade” has catalyzed the benign growth of the industry. Under the premise of no restrictions on the policy, the future space is considerable and opportunities still exist.
On July 6, Bolton Group’s famous e-cigarette brand firearms officially announced the acquisition of NOS e-cigarette business, and launched a new product firearms NOS in mid-July, opening a new round of investment attraction and franchised store recruitment plan in the national region.
As the first real acquisition in the domestic e-cigarette industry, the acquisition of NOS by firearms has aroused hot discussion in the e-cigarette circle. The acquisition of firearms by NOS also opened the era of dual-brand operation, further expanding the advantages of firearms brands and steadily improving the market share.
According to the person in charge of firearms NOS, after firearm NOS started investment promotion, it continued to push forward with the signing speed of 2-3 agents per day. In just one week, 19 city-level agents had been signed. Moreover, some agents took a plane directly from Chengdu to the company site to sign a contract on the second day after the official announcement of acquisition.
Firearms NOS first signing agent said: “I was in the city for ten years business outlets, two ammo store opened last year, just in time to catch the electronic smoke tuyere at that time, the second month it opened opens the crazy profit model, so this time I am very decisive choice of the incoming NOS, because I believe that firearms products, this is my third firearms stores open. As bolton’s e-cigarette brand, firearms are nearly perfect in every way. And now the e-cigarette industry offline competition is so hot, do not start as soon as the products such as selling up gut regret.”
Why firearm NOS can be sought after and favored by e-cigarette practitioners? In addition to the strong background advantages of the Bolton Group and the stable smoke oil process of firearm, the product performance and agency policy of new firearm NOS cannot be ignored.
Firearm has been upgraded in two aspects for NOS new products. On the one hand, black ceramic atomization technology and PCBA software version have been upgraded to improve atomization effect. On the other hand, 8 new flavors are reconcocted, featuring cold series, catering to the characteristics of summer season and more conducive to opening the market. In terms of policies, NOS agents can enjoy relevant subsidies and support policies for firearms agents, and 20 preferential quotas are also introduced to give agents more subsidies and support, with unprecedented strength.
Since the ban of online sales in November 2019, offline has become a competitive place for e-cigarette brands. As early as the beginning of 2019, firearms began to distribute offline channels. From March to December, more than 300 offline stores have been opened in the whole country. Firearms NOS is off to a hot start and will certainly do well in the upcoming E-cigarette fair in Shenzhen.
Since July 2020, firearms have strengthened the supervision of offline stores. From policy publicity and implementation, personnel training to random inspection, the regulations of The Circular on Prohibiting the Sale of E-Cigarettes to Minors and the Circular on Further Protecting Minors from the Infringement of E-cigarettes have been fully implemented. It is understood that in August firearms will also be launched in stores across the country “lit guardian angel” activity, firearms stores across the country will be unified linkage to promote the “Angel Guardian plan”.
Data from Soochow Securities show that in recent years, the scale of tobacco market has been expanding steadily, but the retail volume of traditional cigarettes continues to decline, and the market share of cigarettes is also declining year by year. In contrast, the e-cigarette market size was only 124 US dollars in 2014, and the market size has increased to 36.7 billion US dollars in 2019, with a nearly three-fold increase in market share. As the e-cigarette industry further matures, the e-cigarette market share is expected to reach us $111.5 billion in 2024, accounting for 9.3% of the tobacco market and becoming an important segment.
From the perspective of production, the monthly sales of firearm smoke bombs reached the second place in the industry in May this year. From May to now, the new flavor of firearm has been introduced with the new speed of 3 new flavors per month. If the e-cigarette industry has ushered in a golden age, now firearms are brave enough to ride the waves, implement policies in an all-round way, and build products with ingenuity. Under the background of “policy supervision + product upgrading”, which catalyzes the benign growth of the industry, the firearm will steadily overcome all obstacles.