Suppliers to Prioritize Compliance: Zhao

Compliance is the bottom line of business, according to Everest Zhao, co-founder and CEO of the ICCPP group, a leading vaping product supplier in China.

In a conversation with U.K. Vaping Industry Association (UKVIA) Director General John Dunne, reported on the UKVIA’s website, Zhao said that compliance represents a risk when mishandled but an opportunity when taken seriously.

China’s e-cigarette exports reached $11 billion in 2023, with exports increasing by 12.5 percent annually, according to customs statistics cited by the UKVIA. However, data disclosed in the annual reports of listed companies, suggests that this growth rate may not be sustainable and the industry may face more intense challenges and uncertainties in the future.

Everest said technology and innovation would continue to drive the industry as they bring together knowledge from diverse fields such as industrial design, thermodynamics and chemistry.

“Only by further improving technology, increasing basic research, and enhancing innovation can companies’ product and brand power keep pace with market demand,” he said.

As the industry faces increasingly demanding and diverse consumers, along with stricter regulations aimed at protecting public health and the environment, business operators will have to put compliance at forefront of all considerations, according to Zhao.

“By complying with regulations, companies can avoid unfair competition and market monopoly and promote the healthy development of the entire industry. Compliance operations require companies to continuously develop and produce products that comply with regulations, which helps promote technological innovation and development.

“Compliance operations require companies to strengthen the protection of minors, ensure that products do not contain elements that attract minors, strengthen supervision of product sales and actively protect the health and future of the next generation.”