Moti Magic Flute's electronic cigarette second-in-command is not good.
2020 is called "Thousand Smoke Wars" is not too much, from the listing of fog core technology, you can see with the naked eye, many e-cigarette brands that were previously in the dark began to come to the foreground.
Yueke RELX, Magic Flute MOVI, Fluke FLOW, IQOS, Boulder Bode, Lingxi LINX, Ono vvild, Tervistrup TRUEPE, Hualimen HARYGATE, Yishuang YISHUANG, e-cigarette brands that can be called famous abound.
But we can also see that on the one hand, there is tight regulatory pressure, on the other hand, fierce competition, e-cigarette players have begun to rush to run, each is expanding rapidly, in the constraint of not allowing online and offline advertising, e-cigarette players began to open a large area of stores.
As the second oldest in the industry, after the implementation of differentiated product play, magic flute and other electronic cigarette brands have opened up an obvious position, come to the first echelon, and carry out close-to-body combat.
In March 2021, Magic Flute opened a large subsidy program that is rare in the industry - investing 1 billion yuan in subsidies and opening 10,000 new stores, while there are blank markets, core business circles and policies of additional support for small and medium-sized shop owners, on the one hand, the second old magic flute has been stimulated for many years and wants to quickly enter, so that it can get a good price after listing.
But in the current period when supervision has not yet fully landed, the race of e-cigarette manufacturers to seize time has begun, so where is the difference between the magic flute? How much combat does the hand-to-hand magic flute have? The industry situation is changing, how much imagination can magic flute have?
And see the following disassembly.
First, the madness of e-cigarettes: multi-party fierce battles are in full swing
When Fog core technology went public, it closed up 145.9% and directly soared to $45.8 billion. Before the fog core, the world's largest electronic atomization equipment manufacturer Moore International listing has won a market value of more than 400 billion.
Even under the impact of e-cigarette regulatory documents, "YOOZ Grapefruit" and "ICE Blizzard" have received hundreds of millions of dollars in investment since June this year, and e-cigarettes are still deeply loved by capital.
On the one hand, it is the good achievements of the forerunners, and on the other hand, it is a broad market.
According to Tianyancha data, the size of China's e-cigarette market increased to 8.38 billion yuan in 2020, and another data is that in the past eight years, the average annual compound growth rate of e-cigarettes has reached 72.5%, but under the background of the current Ranking of China's smokers in the world, the penetration rate of e-cigarettes is less than 100%, and it is expected that the scale will reach 100 billion in 2021.
But just in 2020, in 2020, the annual registration volume of China's e-cigarette-related enterprises soared, adding nearly 23,000 related enterprises (all enterprise status) throughout the year, with an annual registration growth rate of up to 77%.
According to the data of Tianyancha, there are currently more than 91,000 enterprises in China whose enterprise names or business scope include "electronic cigarettes" and "electronic atomizers", and 62% of the relevant enterprises are individual industrial and commercial households.
From a vertical point of view, after 2015, venture capital institutions such as IDG Capital, Source Code Capital, Sequoia Capital China, and Zhen Capital have entered, and the e-cigarette track has begun to become crowded.
At present, the more leading e-cigarette brands are Yueke, Magic Flute, and Ono, who has stood on the platform of Lao Luo, and Yueke mentioned in the prospectus that the current market share is 62.6%.
The first to challenge is the Magic Flute.
Second, the magic flute "sits two and looks at one", and the sword refers to the boss
It can be seen that magic flute does not have other electronic cigarettes to open up and close kol marketing.
However, for smokers, or to look at the quality of the product, the characteristics of the magic flute is a large amount of smoke, weak suction resistance, smoke bomb taste is strong, therefore, even in the marketing is far less than Yueke, but with its ten years of independent research and development strength, magic flute in the electronic cigarette players have accumulated a lot of word of mouth.
On the basis of funds, as early as 2019, Magic Flute received $60 million in financing from top investment institutions such as Zhen Fund, SIG, and Honghui Capital, setting a record for the amount of a single financing in the industry that year.
The confidence of Magic Flute comes from its own high-end supply chain system, Magic Flute not only makes its own suppliers, but also establishes cooperative relations with small e-commerce leading enterprise Small.
Magic Flute through the release of subsidies, lower the threshold for opening stores, in order to achieve intensive store opening, basically in the first-line business circle, can see a magic flute store every 400 meters, magic flute play is also very simple, is through product subsidies to attract regional agents, for rapid rollout.
Moreover, the magic flute has also begun to penetrate into the third and fourth-tier cities, open a magic flute store, the manufacturer provides free display cabinets and material costs of only 80,000 yuan, and the preparation cycle and difficulty of the e-cigarette store are also low, simple decoration can be opened for business in about three weeks, and only a shopkeeper can be directly operated.
Up to 40% gross profit, extremely low cost, so that many magic flute agents flock to it.
However, behind the crazy expansion, Ray has long been buried.
Third, the crazy game of racing against time: the magic flute can not escape the mud
The World Health Organization released its latest report on July 27 this year that the sale of electronic nicotine delivery systems (such as e-cigarettes) has been banned in 32 countries around the world.
In China, the anti-smoking policy has gradually tightened, and in March this year, the Ministry of Industry and Information Technology and the General Administration of Tobacco drafted the Decision on Amending the Regulations for the Implementation of the Tobacco Monopoly Law of the People's Republic of China (Draft for Solicitation of Comments).
It is mentioned that it is necessary to promote the legalization of e-cigarette supervision, clarify the regulatory legal basis for new tobacco products such as e-cigarettes, and do a good job of connecting with laws and regulations such as the Law on the Protection of Minors.
The decision came out, causing a shock in the e-cigarette industry, but due to the more vague judgment, that is, "whether e-cigarettes are cigarettes or electronic products", capital is also in a continuous temptation, and this industry will continue to maintain the same state before the specific regulations are introduced.
According to the 2019 Tobacco Survey for Secondary School Students in China, 69.9% of junior high school students have heard of e-cigarettes, and the use rate of e-cigarettes is 2.7%, an increase of 24.9 and 1.5 percentage points respectively compared with 2014, and the proportion of high school students is higher.
The minds of minors are gradually increasing, corresponding to the sinking e-cigarette stores, even if the state has clearly stipulated that e-cigarettes cannot be sold to minors, but on the sinking business side, it is difficult to guarantee that it will be implemented to the end.
On August 4, 2021, Xinhua News Agency issued an article entitled "Vigilance against the Flow of E-cigarettes to Minors", to warn that e-cigarettes may cause harm to minors.
On the black cat complaint platform, there are also related "complaints about the sale of magic flute stores to minors".
Under such a tense industry situation, on July 19, 2021, Tianyin Holdings participated in Ono's proposed listed company, or will be ready to go public, and on July 23, the parent company of the e-cigarette brand Aspire once again updated the US stock prospectus, which can be seen that e-cigarette manufacturers want to quickly land before the formal supervision comes.
Citing another set of data, more than 6,000 e-cigarette-related enterprises in China have operated abnormally, nearly 1,500 have been punished, and in 2020 alone, there are more than 3,000 pieces of information on the executors of e-cigarette-related enterprises.
Through the inquiry of Tianyan, Shenzhen Leiyan Technology Co., Ltd. (Magic Flute) received a fine of 200,000 yuan from the Shenzhen Market Supervision Bureau this year.
With the blessing of capital, e-cigarettes have moved from a small niche to the trend, growing barbarically all the way, and under this "brilliant" and "dangerous" industry, they may fall under the sword of supervision at any time.
As a leader in the industry, the magic flute is at the crossroads of its career, and can only continue to move forward before the ending is unclear, but it is foreseeable that this crazy game may not be far from reshuffling.
The magic flute that wants to break through not only faces external regulatory pressures, but also needs to digest internal hidden worries.
Since the beginning of this year, through keyword search, negative complaints about magic flute have gradually increased, and the top three complaints include selling to minors, quality problems, after-sales service problems, and the drawbacks of rapid expansion have emerged.
Secondly, electronic atomization products actually make consumers love the core of nothing more than taste and taste, and the composition and formula of the electronic atomization liquid on the current market of Magic Flute MOTI are similar, and it is difficult to make differentiated products in terms of taste and taste.
On the other hand, even as an e-cigarette brand, Magic Flute can not positively reply to the "addictive" problem, with the increase of e-cigarette users and the gradual clarity of the market, magic flute from the inside to the outside pressure will continue to come.
From the current point of view, the magic flute does not yet have the competitiveness to break through, if the wave of supervision comes, the status of the second oldest e-cigarette may also be affected.
Resources:
Data source: Tianyancha, Fog core prospectus
Image source: Network
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