SHANGHAI (Reuters) – China’s e-cigarette industry has created around 50,000 people in October, which is approximately 10% of the employees of the association, as estimates show, such as the tightening up of legislation in the United States and China are meeting, and the once-thriving industry.
FILE PHOTO, Visitors try out the e-cigarette products in a state when the eCig Expo (IECIE), Shenzhen, Guangdong province, China, April 14, 2019 at the latest. REUTERS/Stringer
Ao Weinuo, secretary-general of the e-Cigarette Industry’s Committee late on Thursday, said the media coverage of the vapors in the United States of america, the greatest e-cigarette on the market, it has also led to a demand for its return, just as a China e-cigarette sales.
Factories in the southern Chinese city of Shenzhen, where about 90% of the world’s e-cigarettes are made by over 500,000 people, so they have slowed production and cut the workforce.
The fall comes after the success of the e-cigarette in the company of Juul in the United States, prompted investors to China is pouring money into startups with a product to mimic Juul’s compact size and powerful, the nicotine in the formulation of the start-ups, which industry watchers say is now saddled with excess stocks.
The association Chair, Or Junbiao, the founder of e-cigarette maker Sigilei earlier this month, told the media outlet in China, the company has cut staff by about half, from around 1000.
A Shenzhen-an employee told Reuters that the employer Teslacigs be suspended for hiring as it will be moved into a facility designed for the dual of the 400-strong workforce.
Any other person who is at a factory with 300 employees, said orders dropped by 30% since their peak, and will consider the possibility of redundancies if the restrictions will improve in the next year.
“We have been under a lot of stress,” the person said.
Leo Chan is an investor in the venture capital company is Autobot, who is carrying out research into China’s e-cigarette industry, he said, that some of the makers have tried to shift surplus stocks of the access to the offline stores, but with the increasing competition in angry original offline franchise partners.
For smaller brands with a more investor backing of less options. As a manager, be a brand, which launched this year, said revenue fell by more than 60% after the online ticket sales were banned in the month of November.
“We have a lot of capital investment in online sales at the heart of our product strategy,” said the manager, who declined to be identified because of the sensitive nature of the subject matter. “The new rules are immediately messed up along the way.”
Reporting by Josh Horwitz; Editing by Christopher Cushing