---
title: "Breaking | E-cigarette Industry Faces National Standard, Online Channels Cut Off!"
description: "On November 1, the State Tobacco Monopoly Administration and the State Administration for Market Regulation issued a notice to protect minors from e-cigarettes, urging the closure of online sales channels and removal of e-cigarette products and ads. This takes effect immediately, meaning all internet sales sites and e-commerce platforms must remove e-cigarette products and ads within the day."
author: "New Distribution"
publisher: "New Distribution"
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published: "2019-11-02"
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---

# Breaking | E-cigarette Industry Faces National Standard, Online Channels Cut Off!

> On November 1, the State Tobacco Monopoly Administration and the State Administration for Market Regulation issued a notice to protect minors from e-cigarettes, urging the closure of online sales channels and removal of e-cigarette products and ads. This takes effect immediately, meaning all internet sales sites and e-commerce platforms must remove e-cigarette products and ads within the day.

**Breaking News**
On November 1, the State Tobacco Monopoly Administration and the State Administration for Market Regulation issued the "Notice on Further Protecting Minors from E-cigarette Hazards," urging e-cigarette manufacturers, sellers, or individuals to promptly close e-cigarette internet sales websites or client apps; urging e-commerce platforms to promptly close e-cigarette stores and remove e-cigarette products; and urging e-cigarette manufacturers, sellers, or individuals to withdraw e-cigarette advertisements published on the internet.
The notice takes effect from the date of issuance, meaning all internet sales websites or e-commerce platforms must remove all e-cigarette products and advertisements within the same day.

**-01-**
**11.1, the Last Night of Revelry**
E-cigarette brands experienced their last night of revelry this Double 11.
Just a second after announcing that their new e-cigarette products would officially go on sale on e-commerce platforms during Double 11, they were hit with the e-cigarette online sales ban.
About 20 minutes before the official release of the "Notice," Luo Yonghao, founder of Smartisan Technology, forwarded on Sina Weibo the news that "vvild Xiaoye disposable atomized e-cigarettes" would officially go on sale on e-commerce platforms during Double 11.
Luo Yonghao, jokingly called the "trend killer" by netizens, encountered headwinds in his entrepreneurial journey.
As of 20:00 on November 1, searching for "e-cigarettes" on JD.com revealed over 17 brands still on sale, including: RELX, Jil, Xiaoye, Shanlan, TAKI Xike, ESUN Yishuang, FLOW Fulu, YOOZ, iv Aiwei, Yixing, 1AM, CAMU CALM, Taixi JOYC, IVIDA, Manvap, SMOK, and IUOC Aiyoushi.
As of 20:00 on November 1, searching for "e-cigarettes" on Tmall revealed brands still on sale including: RELX/Yueke, Oufaner, HARYGATE/Hualimen, gippro/Longwu, Yanshuo, Feisha, iqos, DISCOVERY/Tansuo, TRUVAPE/Teweipu, SMOK, Xiaoye, Dangran, aspire (smoking devices), FLOW Fulu, moti, Be-Kuali/Bikeli, SAVINELLI/Sha Fen, Subin, etc.
At 21:00, searching for e-cigarette products on Taobao, Tmall, JD.com, Suning, and Pinduoduo apps, it was found that except for Suning.com showing no related products, the other major platforms still had e-cigarette sales.
Online customer service responses seemed to say, **"This is the last day."**

**-02-**
**After the "Notice" was issued, e-cigarette companies responded**
> **@Yueke:**
> E-cigarette brand Yueke issued a statement on its official account, saying it firmly supports and implements the online sales ban. "In the future, under the guidance of relevant departments, we will improve our offline channel layout and continue to upgrade the Guardian Plan to achieve 'technology-driven corporate social responsibility.' We will use AI intelligence, facial recognition, age verification, child lock design, and all other available technological means to ensure that every offline sales outlet of Yueke serves only adult smokers, not minors."
>
> **@Xuejia:**
> E-cigarette brand Xuejia responded: "Our industry indeed has many special characteristics and may face many minors, so from product, sales, to promotion, Xuejia will strictly comply with all relevant policies. We will always keep this in mind: protecting minors from any contact with e-cigarettes is the red line and bottom line of corporate social responsibility."
>
> **@idols:**
> E-cigarette brand Niwo Group responded: "Niwo Group firmly supports and upholds the 'Notice on Further Protecting Minors from E-cigarette Hazards' issued by the State Tobacco Monopoly Administration and the State Administration for Market Regulation. We will fully take action to terminate all online sales and advertising of all e-cigarette products under Niwo Group, including suorin and idols. In the future, Niwo Group will continue to comply with relevant policies and guidance, complete offline channel layout legally and compliantly, and ensure that every offline outlet of Niwo Group serves only adult users and always says no to minors."

An agent of an e-cigarette brand told reporters: "For offline distributors, it is not allowed to sell to minors. Distributors have to pay a deposit, and if they are found selling to minors, they will be fined." In his view, the main consumer group of e-cigarettes is young people in their 30s. "The implementation of the 'Notice' will definitely have an impact on the entire industry. But for those doing offline, it will be a bit better."

**-03-**
**The issuance of the "Notice" may have been foreshadowed**
> **@State Tobacco Monopoly Administration and State Administration for Market Regulation:**
> They will further increase supervision of e-cigarettes. Tobacco monopoly administrative departments at all levels will strengthen market supervision of e-cigarette products, strengthen monitoring, persuasion, and stopping of e-cigarette promotion and sales through the internet, and investigate and deal with various illegal acts according to law; any organization or individual is required to discourage and stop the sale of e-cigarettes to minors.
>
> **@Mao Qun'an, Director of the Planning Department of the National Health Commission:**
> Multiple measures should be taken, especially emphasizing reducing new smokers and reducing exposure to e-cigarettes. Mao Qun'an revealed that they have already discussed with international organizations and experts the current situation of tobacco tax in China and the possibility of tax and price adjustments.

To date, a large number of countries worldwide have completely banned or strictly restricted e-cigarette sales. **Countries or regions with clear legislation or official announcements banning e-cigarette sales have exceeded 40.**
> **@Singapore:** Singapore enacted a ban on e-cigarette sales in December 2016, mainly because e-cigarettes contain nicotine.
>
> **@Brazil:** The Brazilian government believes there is no conclusive evidence that e-cigarettes are beneficial to public health, and they worry that e-cigarettes, like traditional cigarettes, will seriously harm people's health. They also worry that e-cigarettes, like traditional cigarettes, are difficult to manage, so Brazil has banned e-cigarette sales nationwide.
>
> **@Philippines:** The Philippines bans e-cigarettes, and smoking e-cigarettes in public places in the Philippines can lead to up to 4 months in prison.
>
> **@India:** In some parts of India, violating regulations by smoking e-cigarettes can lead to up to 3 years in prison.

**-04-**
**Offline will face direct competition, and the battle will escalate**
Domestic e-cigarette channels generally emphasize both online and offline.
Three years ago, the sales channels for domestic e-cigarettes were relatively simple, mainly online and offline physical stores. Although other channels also had sales, they accounted for a small proportion, often negligible.
With the popularity of small e-cigarettes and the high cost of online channels, some companies mentioned that on JD.com and Tmall, the customer acquisition cost for an e-cigarette user is nearly 50 yuan, **"while offline customer acquisition costs only about a dozen yuan per person."** Due to various factors, offline has become the main battlefield. Channels that were previously negligible have also become important.
Statistics show that there are now more than 10 channels.

> **1. Convenience stores:** When big e-cigarettes were popular, convenience store channels were not suitable. With the popularity of small e-cigarettes, especially disposable ones, convenience stores have become a core offline channel. Various small shops, supermarkets, and convenience stores have naturally become battlegrounds for many e-cigarette brands, and many brands have been seen stocking these channels.
>
> **2. Physical stores:** Physical stores have been an indispensable channel for e-cigarette popularization. At the peak, there were more than 2,000 stores, mostly player stores and street-side stores, mainly concentrated in first- and second-tier cities. After the popularity of small e-cigarettes, many closed down. Now they are transforming, mainly to mall stores. Many brands have opened mall experience stores in many cities across the country, and even recruit agents to open stores through policies like "three exemptions" (exemption from franchise fees, decoration fees, and deposits).
>
> **3. E-commerce platforms:** Since the rise of e-cigarettes in China in 2013, e-commerce platforms have been an important sales channel. Currently, e-commerce platforms account for nearly 30% of sales for many brands and are also an important venue for new product launches. Not only Taobao, Tmall, JD.com, and Pinduoduo, but also other new e-commerce platforms have them listed.
>
> **4. Music festivals:** It was unimaginable at first that music festivals would be linked to e-cigarettes, but now it has become very important. Music festivals, due to their user attributes and culture of freedom, boldness, and letting loose, have been favored by many e-cigarette brands. This year, major brands have been sponsoring and endorsing music festivals for brand marketing.
>
> **5. Internet cafes:** Internet cafes are one of the few places where you can see people smoking in public, especially in many third-, fourth-, and fifth-tier cities. Many internet cafes are filled with smoke day and night, and cigarettes are bestsellers. Therefore, choosing internet cafes is quite precise.
>
> **6. Gas stations:** Generally, larger gas stations have convenience stores. In the past two years, many brands have entered gas stations.
>
> **7. KTVs and nightclubs:** This is also a channel that cannot be ignored. The fashion and trendiness of e-cigarettes match the crowd at KTVs and nightclubs, and many brands have developed this channel. However, it faces sustainability issues.
>
> **8. WeChat business (Weishang):** Currently, there are not many WeChat business distribution models; most still use traditional provincial agents, city agents, and distributor purchasing methods. In 2015, it was popular for a while, with the best being Bufan. But WeChat business has always been suspected of pyramid schemes and has a bad reputation. Now, some WeChat business distribution can be seen in friend circles, and it is said that some companies have made a lot of money from this.
>
> **9. Restaurants:** Restaurants are ignored by some brands, but the sales of cigarettes, alcohol, and beverages in restaurants actually account for a high proportion. Even shops like Shaxian and Lanzhou Lamian have the most foot traffic.
>
> **10. Vending machines:** Smoking is a necessity, and e-cigarette use is also high-frequency. Many people borrow cigarettes at the office or look for them at home. If there were vending machines, they would meet many needs. But currently, e-cigarettes are still in the popularization stage in China, and many people do not know about them. Therefore, vending machines are a trend, but sales are currently low. As e-cigarettes become more popular, they should become a major channel.
>
> **11. Mother and baby stores:** Currently, this is a channel that has not attracted attention. "It's hard to imagine that e-cigarettes have become hot sellers in mother and baby stores," said Qiu Yiwu of Jingyu Qingyan. Customers see e-cigarettes and immediately think of buying them for smokers at home to reduce the harm of cigarettes to family members, especially babies and pregnant women.

With the issuance of this heavy notice by the two ministries, e-cigarette online channels have been banned, and other channels will flourish. However, since comprehensive supervision has taken the first step, e-cigarettes have become a problem that the country cannot ignore. As for whether the state will take further action, it remains to be seen based on market feedback and performance.

**However, one thing is certain: the direction of regulation, public health recognition, and tobacco companies' resource control will make it difficult for entrepreneurs in the e-cigarette industry.**

Compiled and edited by <New Distribution>

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- Publisher: New Distribution
- Author: New Distribution
- Published: 2019-11-02
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- Original source: https://mp.weixin.qq.com/s/sik6gtFmPAnelyC8MKze2g

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