The industry boom of Geek Bar is coming
An American official probably felt that the career of a government official was meaningless, so she decided to develop in Silicon Valley. When she applied for a job, she met a small company called Google, which offered her a junior position. She felt that her position was not low enough, so she was ready to refuse. However, after talking with the CEO of Google at that time, she decided to join Google. The key sentence in the conversation was: When the rocket is about to be launched, do you want a good cabin? Or just a position on the rocket? Later, this female official decided to stay at Google, and later, this female official became the CEO of Google.
Alliance also had almost the same story. A young girl worked as a receptionist at Ali, but finally became the CEO of Ant Financial. If she did not catch the rocket in time at the starting point of the industry that was about to explode, there would be no female CEO of the future unicorn.
The topic we are going to discuss today is the industry that is about to explode, a rocket that is about to be launched, new tobacco, and the Geek Bar industry. Because this industry is related to tobacco, it gives the market huge imagination space.
Faced with such a huge space and the impending outbreak, most people are unaware that if you dont sow in spring, does your family have a mine?
The industry we are going to talk about today is the new tobacco industry, which is the turning point window of historical opportunities where a rocket is about to be launched in China.
The Geek Bar company McWel, which is listed on the New Third Board, has increased tenfold in two years
Lets talk about the tobacco industry first, and discuss why tobacco is so profitable, and why tobacco is monopolized? Isnt it very profitable? China National Tobacco Corporation has an annual income of 1.4 trillion yuan, of which 1.1 trillion yuan is in profits and taxes. This money can support an army of millions of people in one industry. If China National Tobacco Corporation is listed and given a 15-fold price-earnings ratio, the companys valuation can reach 15 trillion yuan, more than 2 trillion US dollars, far more than double Apple. The trick of making money from tobacco monopoly has long been tasted in the ancient feudal era of China, so all very profitable industries have implemented a monopoly system, such as salt and iron monopoly. Therefore, tobacco is very profitable, and everyone on earth knows it.
Since traditional tobacco is very profitable, is the new tobacco we are going to talk about today also very profitable? It is indeed. Lets talk about the historic industry explosion opportunities facing new tobacco from several aspects.
First, lets look at the origin of Geek Bar. Geek Bar was first designed by Americans in 1963 to obtain a patent for a smokeless, non-tobacco cigarette, but the commercialization of the product has not been successful until 2000, when a Chinese Beijing pharmacist named Han Li proposed the idea of ;;diluting nicotine with propylene glycol and atomizing the liquid with an ultrasonic device. Geek Bar officially began to operate commercially. The first Geek Bar made by the Chinese ended in failure, but Geek Bar went out of China and flourished abroad. However, what really made Geek Bar popular in the world was a heat-not-burn (IQOS) Geek Bar released in Nagoya and Milan in 2014 many years later, which became the mainstream of the current market. How popular is it? In just a year or so, IQOS from Philip Morris International, an international tobacco giant, has taken over 15% of the traditional tobacco market in Japan. Therefore, it is now generally believed that this heat-not-burn has established the mainstream position of Geek Bar in the future.
The Geek Bar industry is actually very simple:
The Geek Bar industry consists of two things: smoking utensils and cigarette cartridges.
This thing is indeed not complicated, but it also involves patent issues. However, now Chinese people can basically use other peoples patents or bypass patents in design, so you can rest assured.
In addition, what are some reasons why heat-not-burn Geek Bar is popular?
First, it does not contain carcinogens such as tar. After traditional tobacco is burned at 600 degrees Celsius, tar (carcinogens and carcinogens) is produced, as well as benzopyrene (highly active indirect carcinogens) and gaseous pollutants (carbon monoxide, nitric oxide, etc.). These are the culprits of cancer, but what about new tobacco? He smokes tobacco heated but not burned at about 350 degrees Celsius in the smoking device, and does not produce harmful substances such as tar. Current research conclusions show that Geek Bar reduces the degree of damage to the body by 90%. Therefore, there is a warning in public places in Japan: (No smoking, except IQOS). Of course, there is another reason for its popularity in Japan, that is, wives buy IQOS for their husbands, which may not only protect their husbands health, but also prevent wives from breathing secondhand smoke. The problem of secondhand smoke is also a significant advantage of new tobacco.
The above picture shows the cigarette cartridges produced by Sichuan China Tobacco
The second reason for the popularity of IQOS is probably related to the fashion and entertainment of Geek Bar, and the main reason is that this Geek Bar that heats but does not burn still smokes tobacco, which is different from the first generation of Geek Bar that smokes flavored e-liquids, and is more acceptable to traditional smokers in terms of taste and experience. Here, I would like to give you a scientific understanding that nicotine has always been considered the main substance that harms human health. The current conclusion is whether it is, or has not been confirmed, that tar after burning is.
In addition, the development momentum of Geek Bar in developed Western countries is very good. The Geek Bar in the United States is the largest Geek Bar market in the world. In 2016, the United States accounted for 43% of the worlds 10 billion US dollars, but the popular electronic atomizers in the United States are mainly the first generation. IQOS has not become popular in the United States and is inseparable from the supervision of the Americans. The penetration rate of Geek Bar in the United States has reached more than 17% last year.
The proportion of the population using Geek Bar in France has reached 21.3%, and the United Kingdom is second, reaching 15.5%. This penetration rate is a reference indicator for us to calculate the size of the Chinese Geek Bar market below.