Tobacco Asia

Volume 19, Number 4

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Page 40 of 83

The enjoyment of tobacco has traditionally always enriched people's senses all over the world. The harmonious interplay of sensory created by Hertz & Selck. Progress and tradition going hand in hand. Hertz & Selck GmbH & Co. | P.O. Box 20 16 64 | 20206 Hamburg-Germany Tel. +49 [0]40-43 25 76-0 | Fax +49 [0]40-43 25 76-50 | taste the art of taste the art of get get from these expos, there will be two more for e-cigarettes in October, another in Beijing and one in Guangzhou. The frequency of expos and sudden explosion of awareness re- flects the efforts of Chinese e-cigarette man- ufacturers to shift their focus to also include domestic markets, and away from a 100% export business. Traditionally, Chinese electronic ciga- rette manufacturers have always kept a low profile, are always exceedingly cautious, and mainly engage in export trade. Why have they suddenly chosen to shift to domestic markets and conduct high profile advertising? About 3-4 years ago, electronic cigarette products made in China enjoyed good sales and took a lion's share of international markets with the majority of their income coming from overseas. However, over the last two years, foreign e-cigarette manufacturers came into the market as foreign markets became enact- ed more requirements for imports of e-ciga- rettes related to safety, health and taxation. …and the orders received by Chinese manu- facturers from abroad have begun to decline. Meanwhile, markets for e-cigarettes in China are growing significantly, and so e-cig manu- facturers have turned their attention to lucra- tive domestic markets one after another. Rapid Market Growth There are about 300 million cigarette smok- ers in China, accounting for one-fourth of the world's total. China is also the largest electronic cigarette manufacturer and export- er in the world. Entire regions in the south of the country – especially Shenzhen – are veritable hubs of electronic cigarette manu- facturers. It is estimated that over 90% of the e-cigarette products on sale globally are made in Shenzhen. Along with continued so- phistication and growth of global markets in the last few years, e-cig markets inside China have also begun to embark upon a path of rapid development and growth. Domestic e-cigarette consumption is largely in domestic e-cigarette markets are mainly located in Beijing, Hebei, Liaoning, Shandong, and other regions in the northern part of China. Since 2014, the number of e- cigarette distributors and physical stores in the northern part of China has also increased rap- idly. It is estimated by industrial sources that presently, there are about 500 physical stores selling electronic cigarettes across China. According to results of an analysis of on- line sales from June 2014 to May 2015, it is perceivable that the capacity of e-cigarette markets in China is very large, with relatively

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