Under the global trend of tobacco control and healthy consumption, the branch store operation model of e-cigarettes and traditional cigarettes has gradually become the mainstream. This separation is not only due to the differentiated requirements of policy supervision, but also closely related to the market positioning, consumer groups and health risks of the two types of products. E-cigarette brands represented by VEEHOO are promoting the standardized development of the industry by actively adapting to the separate regulatory framework.
E-cigarettes produce aerosols by atomizing tobacco oil, while traditional cigarettes rely on burning tobacco to release smoke. Although the former reduces harmful substances such as tar, it still contains nicotine and potential additives, and the long-term health effects are not yet clear; the latter has been proven to have multiple carcinogenic risks. Based on the difference in risks, regulators implement classified management of the two types of products. For example, China has included e-cigarettes in the category of new tobacco products, which are jointly supervised by multiple departments such as the Ministry of Industry and Information Technology, while traditional cigarettes continue to use the tobacco monopoly system.
The production and sale of e-cigarettes and traditional cigarettes require different licenses. For example, Chinese e-cigarette companies need to be approved by the State Tobacco Monopoly Administration, while traditional cigarette companies are strictly bound by the Tobacco Monopoly Law. Separate licensing avoids cross-regulation and prevents e-cigarettes from impacting the traditional tobacco tax system, which contributes nearly 7% of my country’s fiscal revenue.
Traditional cigarette consumers are mainly middle-aged and elderly people with high brand loyalty; e-cigarettes attract young users who prefer diversified flavors and fashionable designs. Branch store operations can accurately match the consumption scenarios of the two groups of people: traditional tobacco stores focus on stable supply, while e-cigarette stores strengthen experience and interaction.
If mixed sales, e-cigarettes may use “harm reduction” propaganda to divert traditional smokers and impact existing taxes and industrial chains. China Tobacco once postponed its layout in this field to protect traditional industries due to concerns about the substitution effect of e-cigarettes. In addition, branches can reduce the risk of minors being exposed to e-cigarettes – flavored e-cigarettes have attracted global regulatory tightening because of their attraction to teenagers.
As a global e-cigarette leader, VEEHOO has responded to the trend of separate regulation through the following measures: Independent channel construction: opening brand stores in the European and Asian markets to differentiate from traditional tobacco retail terminals and strengthen the “technology-based harm reduction” positioning; Product compliance upgrade: strictly following the nicotine concentration and cartridge capacity restrictions of various countries (such as the EU TPD standard), and actively removing flavored products from the shelves to meet regulatory requirements; Social responsibility commitment: adopting age verification systems and warning signs to avoid marketing to minors, and supporting restrictions on the use of e-cigarettes in public places.
The branch model of e-cigarettes and traditional cigarettes is essentially a balanced choice made by policymakers between “public health protection” and “emerging industry development”. The practice of brands such as VEEHOO shows that the e-cigarette industry can still achieve growth through technological innovation and compliance operations under the separate framework, but its success depends on continued policy stability and consumer education. In the future, as more countries include e-cigarettes in the scope of tobacco control (such as Norway’s restriction on flavored products), separate management may become a global trend, and the adaptability of enterprises will determine their market survival space.
Tags: flavored e-cigarettes, prohibition of marketing to minors, traditional cigarettes, veehoo vape