Many glass water pipes manufacturers cannot endure this winter.
by linbin on June 03, 2020
China New Jingwei Client: Data show that there are more than 8,000 newly registered glass water pipes enterprises in recent years. What do you think of this number?
Jian Xiao: If it's just a manufacturer, there certainly aren't so many. In Shenzhen, it is conservatively estimated that there are more than 1,000 glass water pipes enterprises, more than 90% of which are OEM enterprises. Under the supervision of the policy, the more than 1,000 glass water pipes enterprises can be reduced by at least 80% this year, and a large number of glass water pipes enterprises are expected to be eliminated this winter.
The products of major glass water pipes enterprises are not necessarily sold to the domestic market. Everyone has their own overseas channels. Perhaps 70% of the sales volume will be overseas before this year. The domestic market may only account for 30%, but the proportion of the domestic market is increasing.
The proportion of people using water pipes online in the total smoking population in China is less than 1%, which is quite low. The proportion of the glass water pipes population in the United States is about 17%, while that in Britain is slightly higher, about 20%. I am referring to the proportion of smokers, not the public.
China-Singapore Jingwei Client: It is said that glass water pipes may be regulated like tobacco in the future, and even a "tobacco monopoly license" may be issued. What do you think of this news?
Jian Xiao: In the future, the country will definitely supervise glass water pipes. As to which department will be responsible, this is a question of the upper structure. From the perspective of the enterprise, it can only comply with the national regulations.
I think the future market of glass water pipes is a diversified market with diversified channels and brands. No matter the price, appearance or experience, there will definitely be high, medium and low grade products. The width of the market is objective. Everyone has different product positioning and different consumer groups in this market.
On the dispute over glass water pipes
Is glass water pipes smoke? Is it harmful to the body? In what categories should taxes be paid? How can we prevent glass water pipes from being sold to minors? With glass water pipes pushed to the "tuyere" this year, a series of questions about glass water pipes have also been pushed to the public.
Sino-Singapore Jingwei Client: From abroad to home, there have always been great disputes over the safety of glass water pipes. What do you think are the main aspects of these disputes?
Jian Xiao: The biggest question now is whether water pipes for sale are healthy or unhealthy products. Smoking glass water pipes is definitely unhealthy because it contains nicotine. However, compared with traditional tobacco, its appearance is relatively "healthy" for smokers. Tar and other components contained in traditional tobacco are more harmful to human body.
At present, there is no document that glass water pipes has caused direct illness, either at home or abroad. After analysis of some foreign cases harmful to health, it can be found that marijuana alkali or other ingredients are mainly added to tobacco oil, and consumers do have unhealthy effects after smoking.
The domestic market has almost jumped from big smoke to small smoke. The glass water pipes products currently on sale are basically closed. Consumers can change cigarette cartridges, but they cannot change cigarette oil themselves, which can ensure the quality of cigarette oil.
Sino-Singapore Jingwei Client: Does glass water pipes only pay 13% VAT? What is the real situation?
Jian Xiao: If only 13% value-added tax is used to determine the tax or profit tax of glass water pipes enterprises, it is actually not objective for manufacturing, processing, production and sales enterprises like ours.
The lookah glass dab rigs industry is divided into two parts. The first part pays taxes to the state according to the category of production and manufacture of the products in the raw material tobacco oil part, which has already been purified by the nicotine purification plant. The second part is production and sales. This does not mean that all taxes are on the sales side of the enterprise, and contribute to the tax in every link of glass water pipes production, manufacturing and sales.
Sino-Singapore Jingwei Client: The point that has been criticized now is that enterprises "entice" teenagers to smoke glass water pipes by adding flavors of different flavors. What do you think of this statement?
Jian Xiao: Flavors are all imported food grade standards, which is no problem, but not selling glass water pipes to minors is the corporate social responsibility and the legal bottom line. Self-service vending machines must not be set up around schools or places where minors may appear. The advantage of offline vending is that minors can be identified.
Technically speaking, vending machines have age and face recognition systems, which are recognized through a variety of cross-validation methods. If it is found to be a minor, it will stop buying and refund.