On the afternoon of November 15th, the first second executive board of the E-cigarette industry committee of the China Electronic Chamber of Commerce was held in Shenzhen, and the meeting revealed that the domestic e-cigarette industry had seen a decline in orders, facing pressure to lay off staff, and called on enterprises to try not to lay off workers. The meeting revealed that China’s e-cigarette industry has 500,000 direct practitioners, as well as 2 million indirect practitioners. E-cigarette factories are mainly located in Shenzhen Bao’an District of Shajing, Fuyong two streets.
Call for no panic selling
On the afternoon of November 1, the State Tobacco Monopoly Bureau and the State Administration of Market Supervision and Administration issued the Notice on Further Protection of Minors from E-cigarettes. Since the release of the Notice, within a few days the network quickly off the shelves, most of the merchants are prepared for a large volume, so the backlog of large inventory, coupled with the U.S. market is also facing a decline in sales, the market is under great pressure, so there is a complaint of negativity, causing panic.
Therefore, the industry conference called for not panic selling of products, resulting in the collapse of the price system, thereby “stepping” phenomenon, to maintain the stability of the market price system.
According to the Securities Times reporter understand, in order to prepare for the double Eleven, many brand merchants have prepared at least millions of dollars of inventory, now this part of the inventory is not only indigestible, follow-up orders have become a problem, the entire industry is facing unprecedented pressure.
In addition, factories, mainly factories, face a sharp decline in orders, the need for large numbers of layoffs, resulting in a large number of job losses caused by unrest. Industry conference believes that the current year is coming, enterprises try not to lay off workers, positive, cross the difficulties. If there is a eventual need for redundancy, workers should also be dismissed in accordance with the provisions of the Labour Code in order to avoid large-scale labour disputes.
According to a recent interview with the Securities Times, because there is no order production, in a short period of two months, many factory workers have lost two-thirds, workers have contract workers and temporary workers, there are a large number of workers from the labor company outside. Some factories have been in labor disputes.
90% of e-cigarettes are sold in Europe and the United States
According to the meeting of the e-cigarette industry committee, China’s e-cigarette direct lying more than 500,000 people, driving hundreds of supply chains, indirect employment of more than 2 million people, From 2016 to 2018, China’s total sales of private e-cigarettes amounted to 65.14 billion yuan, of which total exports amounted to 52.09 billion yuan, domestic sales totaled 13.06 billion yuan, and 90% of products were exported to Europe and the United States.
It can be said that e-cigarettes have been a significant large industry, in the global division of labor system also has advantages, the number of workers in the industry, with the industry background also has a great relationship, e-cigarette industry automation is low, is a relatively high labor dependence on the industry.
The meeting also called on members to safeguard the interests of the industry, do not attack each other, do not publish fake news, publish smoking cessation, tobacco, health harmless and other false advertising, such as found will be regarded as “industry public enemy.”
The meeting held that China’s export of e-cigarettes has occupied an absolute market advantage, Europe and the United States and other developed countries have introduced relevant laws and regulations to improve the market technology access threshold, in order to seize the international market, to China’s e-cigarette industry exports have brought a greater impact. At the same time, China’s e-cigarette product attributes are not clear, regulatory positioning is not clear objective factors also continue to affect domestic enterprises to further bigger and stronger.
The meeting called on the Party and the government to conduct a comprehensive investigation and evaluation of the e-cigarette industry, give a clear positioning, and formulate relevant regulatory measures in line with China’s national conditions, so that China’s e-cigarette industry healthy and orderly development, continue to maintain a dominant position in the world.
In addition, the meeting decided that, in order to control the quality, led by the China Electronic Chamber of Commerce, the establishment of e-cigarette testing center, for the quality and safety of e-cigarette products to provide a testing platform, will better serve enterprises, will promote the quality and safety of e-cigarette products. Store sales recommendations should have a “refuse to sell minors” warning signs;
The meeting held that the public should be made aware of the social value of the e-cigarette industry, the e-cigarette industry in export, employment, taxation and other aspects of the contribution.