E-cigarette maker Juul suspends sales in China days after launch


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E-cigarette maker Juul suspends sales in China days after launch

On Tuesday, the 17th of September 2019, the CA-based e-cigarette maker, Juul Labs Inc., headquartered in San Francisco, issued a statement saying that its products would not be currently available on e-commerce sites in China, however, the company did not specify any reason behind its abrupt exit from Chinese market which currently holds more than 300 million smokers.

In point of fact, latest move of Juul Labs Inc. came forth just after a few days it had entered into the world’s largest tobacco market with 300 million smokers as beforementioned. Meanwhile, without citing any specific reason behind its premature quit from China’s e-cigarette market, a company spokesman said in a statement on Tuesday (September 17th), “While JUUL products are not currently available on e-commerce Web sites in China, we look forward to continued dialogue with stakeholders so that we can make our products available again."

Latest pullback of Juul of its aggressive expansion strategy including China where it had already set out a number of e-commerce stores including Tmall, a site owned by Alibaba, Chinese e-commerce behemoth JD.com and a many more, might have been pointing towards its growing wrestles in the domestic markets, where one of its major stakeholder, tobacco giant Altria Group holding 35 per cent stakes in Juul Labs Inc., had been bracing for a regulatory crackdown, while Juul was facing off steep government scrutiny over the past few days over its aggressive marketing policy, suggested analysts.