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Author Topic: Electronic cigarette manufacturers  (Read 1035 times)
zerowing
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« on: May 01, 2009, 05:19:07 PM »

In 2003, the Chinese made the first electronic cigarette. This product was acclaimed to be a healthier alternative to tobacco smoking. Electronic cigarette is an exception to the Chinese’s manufacturing sector; this “made in China” product is the brain child of the Chinese right from the start. The story began in 2004 with a Beijing company called Golden Dragon, later renamed Ruyan, who invented electronic cigarette. Since then, electronic cigarette has stormed the world, becoming widely available in USA, UK, Western Europe, Japan and Korea. This explosive success has sparked my interest into electronic cigarette and had travelled to China to find out more about this product. Of electronic cigarette manufacturers I have communicated with and or visited, I am very disappointed by the poor research and development of an extremely valuable product.     

Ruyan was the inventor and pioneer of electronic cigarette. Despite these advantages, the growth of this company has been slow. This company gave me the same feelings as the Chinese government; inefficient, beauracratic and arrogant. In such a new and growing industry, Ruyan is losing itself to competitors.

My understanding of electronic cigarette mainly came from visits to electronic cigarette factories in Shenzhen. Shenzhen is home to 4 well established electronic cigarette companies: Heyuan, Kanger, Simoer and Boge Tech. 

Heyuan, founded in 2004, specialise in the assembly of electronic cigarette by sourcing readymade components and e-liquids. Current output of its 400 employee is approximately 80,000 electronic cigarettes per month.

Kanger has grown significantly over the past 2 years. In order to maximize productivity, Kanger’s squeezed 200 employees into a small factory. The working conditions of their staffs were very poor.

Simoer is a well established manufacturer engaged in production of a small range of products of an average quality. It has the capacity to produce approximately 50,000 electronic cigarettes per month. During my visit, I was most impressed by Simoer’s spacious factory.   

Boge Tech has expanded rapidly under the harbour of its parent company, Dekang Biotechnology. Dekang is the only major e-liquid (found in electronic cigarette cartridges) manufacturer, supplying majority of world’s e-liquid. In Boge Tech’s factory, I saw NJOY products, the biggest electronic cigarette brand in the world. This company produces about 50,000 electronic cigarettes per month.

 There are many more smaller electronic cigarette companies in Shenzhen. I was horrified by the number of acclaimed electronic cigarette manufacturers, who in reality, are trade companies earning margins by linking retailers and manufactures.
 
     Electronic cigarette has been growing amid safety concerns; partly due incorrect marketing by early retailers and partly due to the lack of clinical trials. As the second generation of electronic cigarette saturates the market, I foresee the growth of this industry in the coming years to lie in e-liquid retail. E-liquid is currently unregulated in countries where electronic cigarettes are of legal use. The latest Canadian ban, justified on the toxic nature of nicotine, is likely to be followed by US and European countries in the near future. As a consumer and seller of electronic cigarette, I welcome tighter regulations to ensure safety and quality of this device, so its potential can be realised. I look forward to seeing electronic to be placed on supermarket shelves in the near future.   

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