1. The profits of related companies will be affected by taxes and price caps.
Tax: At present, e-cigarette tax is paid with reference to ordinary consumer goods, that is, 13% value-added tax. The current tax rate of tobacco is 36% to 52%, which is equivalent to 3 to 4 times the current tax on e-cigarettes.
Price limit: There may be a guide price for e-cigarettes to limit the price. At present, the maximum price of cigarettes cannot exceed 1,000 yuan per stick, which is 100 yuan per pack.
2. The production side is affected.
If e-cigarettes are included in the tobacco monopoly management, the production side must submit a production application to the Tobacco Monopoly Bureau and obtain a "tobacco monopoly production enterprise license" before production, and the pattern of manufacturers will change greatly.
The sales side will also be affected, and the distribution and retail channels will change. The existing distribution and retail channels must obtain a tobacco sales license before they can be sold. Previously, the electronic cigarette industry relied on offline retail channels and did not require a license, so it achieved rapid offline development.
3. Long-term and short-term analysis
In the short term, the electronic cigarette industry will be greatly impacted, and the industry pattern may face another reshuffle;
In the long run, the industry will move from savage growth to health, and regulation will not affect long-term growth. After the implementation of the regulatory system, the business model of the electronic cigarette industry will move closer to the traditional tobacco model, the offline channel competition of leading companies will be more intense, and the living space of small players will be further squeezed. The implementation of regulatory policies will affect the sales of e-cigarettes, but the implementation of the policies may also help leading tobacco brands to deepen their binding with leading manufacturers, increasing the certainty of future business growth, or increasing industry concentration, because leading companies are more capable of R&D that meets regulatory conditions product.
