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The production capacity of the implementation of the national standard is concentrated to the leader, and many e-cigarette companies have abandoned BYD Electronics (00285) and switched to Smol (06969) for OEM

Core Tip: After the implementation of the new regulatory policy in October, the trend of the e-cigarette industry to concentrate on the head has become more and more obvious. According to news from multiple sources, many brands including Blizzard, Jigan, and Qianmu have transferred their foundry business from BYD Electronics (00285) to Smol (06969). According to the industry media Blue Hole New Consumer Report, the latest national standard product packaging of JiSense e-cigarettes shows that its manufacturer is Shenzhen Microwell Technology Co., Ltd.

According to the industry media Blue Hole New Consumer Report, the latest national standard product packaging of the extreme sense electronic cigarette shows that its manufacturer is Shenzhen Microwell Technology Co., Ltd., which means that the company has transferred its OEM business from BYD Electronics to Smol. Another broke the news that, in addition to the extreme sense, Blizzard, Qianmu and other brands have also transferred their foundry business from BYD Electronics to Smol.

According to public reports, since BYD Electronics entered the electronic cigarette track, it has basically established cooperative relations with brands with low market popularity and a small market share. In October 2021, Jigan and BYD Electronics announced a high-profile alliance to deepen cooperation. Based on research on user experience, they will help create more complete atomization products and open a new chapter in research and development.

After the implementation of the national standard, the industry generally believes that leading enterprises can smooth the impact of tax increases by virtue of their multiple advantages such as scale, automation, and strong bargaining power.

According to Blue Hole’s new consumption statistics, after Jishen switched to Smol, the domestic compliant electronic cigarette companies manufactured by Smol include: RELX with a production capacity of 329 million pods, YOOZ with a production capacity of 74 million pods, and 33 million cigarettes. Magic Flute with pod capacity, Snow Plus with 77 million pods, Extreme with 4 million pods, Qianmu with 900,000 pods, and Van Gogh with 150,000 pods. The annual quota of the above brands has reached about 520 million, which means that Smol has won the OEM share of most domestic brands.


Post time: Nov-04-2022