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On Sep. 16th, 2015, Huizhou KIMREE Technology Co., Ltd., the STL (Straight to Lung) electronic cigarette's father, released STL WOLF on the International Tobacco Exhibition in Dortmund, Germany, which aroused lots of attention. KIMREE obtained lots of orders from many e-cigarette brands and tobacco giants on site.

STL WOLF is a lung suction electronic cigarette starter kit of KIMREE. Why it can cause so much sensation? The reason is that everyone warmly commends not only this product, but also the business model analysis from Andre, the chairman of KIMREE on the road of NASDAQ IPO.

As human health consciousness, total annual global tobacco sales are gradually reduced, hence tobacco giants is facing an unprecedented crisis. Wells Fargo Bank study statistic predicted that global sales of tobacco will reduce by 2% --- 5% each year from 2013 to 2023. If continue like this, after decades, tobacco giants' glory will be gone.

Saving this situation becomes an unspoken secret mission of the tobacco industry. A series of nicotine related products draw the tobacco industry's attention immediately, such as nicotine pills, nicotine gum, nicotine tobacco snuff, chemical non-smoking, electronic cigarette, flue-cured tobacco. How do they effect to the tobacco industry?

1. Technology

The use principle of smokeless and flue-cured tobacco comparison are that flavoring company blend flavors and fragrances with nicotine like into the solution, then spray it onto tobacco leaf, and then in tobacco baking process make tobacco into different shapes, after which put it in a special machine for the consumers to smoke. They use low temperature evaporation in whole process.

Electronic cigarette use principle is as follows: Flavoring company blend flavors and fragrances with nicotine like into the solution and then put it in a special machine for the consumers to smoke. It uses low temperature evaporation in whole process.

Compared to smokeless and electronic flue-cured tobacco deliberately stretched industrial chain， electronic cigarette liquid is more direct use of spices and nicotine effectively. History is constantly moving forward, so does technology. The results of technology will only be cheaper and more convenient and diversified. All these decide the electronic cigarette is a more advanced product.

2. Customer

The drug ingredients break down time of Nicotine pill, nicotine gum and nicotine tobacco snuff is long, and the body to absorb them slowly, and they like to medicine, so that smoker' satisfaction is low.

It is assumed that an American smoker spends $10-14USD to smoke two packs of cigarette one day. If he changes to use STM (Straight to Mouth) electronic cigarette, 3.0mg nicotine liquid corresponding 1g liquid. Conversion corresponding electronic cigarette consumption per day is as follows: disposable electronic cigarettes $6USD/DAY, disposable cartomizer $3USD/DAY, STM liquid $1—1.5USD/DAY. If he changes to use STL electronic cigarette, 0.3mg nicotine liquid corresponding 10g liquid, spends $10-15 USD/DAY. But STM is digestive absorption, long lead time, and low efficiency; while STL is respiratory absorption, short time and high efficiency.

3. Tobacco Giants

While selling a large number of nicotine pills, nicotine gum and nicotine tobacco snuff, tobacco company's sales will drops.

If using STM electronic cigarettes, e-liquid consumption is small, the overall sales are not high, and the tobacco company's sales will decline significantly. Otherwise, because STM electronic cigarette requires high nicotine content of e-liquid, it goes against security management.

If he pulls the STL electronic cigarette, we will find that tobacco company sales will remain the same. At the same time, because STL electronic cigarette demand low nicotine content in e-liquid, it suits security management.

4. Future

While the uses of nicotine pill, nicotine gum, nicotine snuff, smokeless cigarette, flue-cured tobacco are single, electronic cigarettes will be used as hospital equipment development in the future. By developing a variety of pharmaceutical function of e-liquid, such as throat e-liquid etc., temperature control STL electronic cigarette is expected to be used in the healthcare industry.

Based on comparative analysis, compared to other products, the STL e-cigarettes not only truly satisfy user needs, improve the quality of human life, but also make a balance for all parties' interests. This also explains why many brand and tobacco giants fully eager to order STL electronic cigarettes.

SOURCE Huizhou KIMREE Technology Co., Ltd.