E-cigarette sales in China have grown slowly. One main reason: the government-owned cigarette company is also the national tobacco regulator - and has the power to regulate its competitors out of the business by horwitzjosh
- In a glass-walled laboratory, chemists puff on vaping devices as they test liquid nicotine flavors. Nearby, staffers with cartons of instant noodles on their desks tap away at laptops, messaging suppliers and customers.
E-cigarette sales have grown slowly in China compared to other industrialized nations. Its market is about one-ninth the size of the United States, according to market research firm Euromonitor. One main reason: China Tobacco, which is both the government-owned cigarette company and the national tobacco regulator. The state monopoly has not clearly signaled how it will regulate e-cigarettes – or whether it will sell them.
In September, Juul briefly started selling devices on two popular online commerce sites, Tmall and JD.com Inc. But the products were pulled from the websites days later for unknown reasons. Juul’s success quelled those doubts. Dozens of Chinese startups released pod-style vapes starting in 2018. Many had roots in China’s technology industry. Shenzhen-based Laan, for instance, was founded by former employees at WeChat, the messaging app owned by Tencent. YOOZ, based in Beijing, was launched by Cai Yuedong, an online media entrepreneur.
The company’s most popular flavors are mung bean, a common ingredient in Chinese desserts, and laobinggun, a type of popsicle popular in the nineties in China.
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