Released on: October 30, 2011
Author: Maggie Luo
City: Shenzhen, China
Industry: Electronic cigarette, PV

After my investigation, there are more than 300 manufacturers in mainland China to produce electronic cigarette products, 90% locate in Shenzhen city. More than 200 companies are very small factory with less than 100 workers, even they don’t have exactly assembly line and management team. Only 20 companies have scale production line and facilities, also small engineering department, but there are very bad quality control and un-professional management. Only 3~5 factories have basic management structure and quality system, and R&D dpartment can do ODM service, but there are still a lot of quality problems. Maybe just 1~2 can make high quality products, such as Joytech, but I also got some complain from customers for Joytech quality problems. Joyetech is really the highest not only in quality but also in engineering, but there is still big space to improve, if we compare him with other professional big manufacturers in other industries such as computer.
Of course, electronic cigarette is still a new industry under rapid growing, we cannot compare it with other mature industry such as computer, mobile.
In these 3~4 years, the China electronic cigarette company qty was double every year. In 2008, there was maybe less than 20 factories, but right now, there are 300~500, maybe more. But all of those are very small and not professional, they even don’t have common business sense or have been well-trained before. They join in this industry, just because there is very low entrance barrier and they can make some money. NO need so much fund and professional background, they are just normall sales or engineers with big intend to make more money audaciously in short term. No business strategy and plannings, they jump in this industry, copy exist models and just build up 1 or 2 simple assembly lines, they approach business and orders aggresively with very low price, small MOQ and fast delivery schedule. What is the value for this people and factories to join in this industry? No value at all, but seems nobody care. I have to say, it is big problem occur from these low end competitor, because what they are doing is not to boost this industry, is to hurt it.
Maybe there is same suitation in other countries, I saw a lot of people in US and Europe join in electronic cigarette industry continously as well, but same as in China, most of them are small scale.
We need big guys in this new industry, not only in China manufacutring basis, but also in global market. But before those big guys join in, there are still a lot of things need to solve, such as regualtory system establish especially for electronic cigarette, and more attentions/support from government and associates.
I think there is still long way need to go and struggle, maybe decads.


About riva-ecigar.com:

Electronic cigarette manufacturer and wholesaler from China, which is always dedicated to bring innovative product design with low defective rate to electronic cigarette industry, not only have humanistic function design but also contractive cosmetic design.