Presentation. Performance. Portability. Price. Those four factors drive the vaporizer market, and manufacturer CCELL strives to meet them all.
An independent operating unit of Shenzhen Smoore Technology Co. Ltd., CCELL is part of a global giant specializing in electronic cigarette research, production, development, sales, and service. Founded in 2006 in Shenzhen, “China’s Silicon Valley,” the parent company employs a total of 260 engineers and 10,000 workers across its divisions, up from a 2009 total of fewer than 1,000 people. Smoore operates eight facilities covering more than 100,000 square meters of floorspace (up from 3,000 square meters in 2009), and its various divisions serve commercial customers in more than thirty countries. In 2018, Smoore became the first tenbagger stock on the National Equities Exchange and Quotations Co. Ltd., or NEEQ, China’s over-the-counter market, where its market cap stood at U.S. $1.3 billion in March.
Launched in 2016, CCELL’s original products employed then-industry-standard wick-based coils. By the summer of the same year, the company had developed and patented a revolutionary ceramic heating chamber. The development “attracted a lot of attention and positive response from the market in a short time,” said the marketing manager. So much attention, she noted, the company had to build more factory space. The newest facility is expected to open in May.
Today, the company devotes its formidable resources to “continuously exploring and creating value through innovative technologies and products in the field of medical atomization,” she said, adding the company is collaborating on a medical device project with a major American university. “Our mission is to take the cannabis industry’s development as an opportunity to build superior products relying on core technology and excellent quality. This philosophy inspires us to continuously explore and create purer and more excellent user experiences for consumers and the whole industry.”
Our mission is to take the cannabis industry’s development as an opportunity to build superior products relying on core technology and excellent quality.
The company manufactures and markets every vaporizer part except the extracts with which the devices are filled. Although its customers are primarily in the United States, the division serves companies around the globe, the marketing manager said. No small part of the international appeal can be attributed to CCELL’s devotion to research and development. “We spend an average of 6.5 percent of our annual revenue on R&D each year,” she revealed. “We have a fundamental research institute focusing on basic research of new technologies, new materials, and laboratory-stage research.” All that effort has resulted in 822 patents for design, utility, and inventions.
Terrapin Care Station is among the companies that rely on CCELL technology. According to Sales and Marketing Manager Kobi Waldfogel, “CCELL hardware gives us, our dispensary partners, and our patients peace of mind. Consistency is key for providing patients with the relief they are looking for, and the CELL hardware allows us to stay consistent and showcase our high-quality extracts in the best way possible. We spend a lot of time and energy ensuring our vaporizer cartridges have great tasting oil in them, so it is really important for us to use hardware that will highlight those flavors. Flavor, vapor production, and cost all encourage us to use CCELL to differentiate ourselves.”
Rocky Huang, founder of Timeless Vapes, cited similar reasons for adopting CCELL products. “CCELL’s hardware allows for a more consistent and reliable vaping experience,” he said. “I like the overall experience CCELL provides: smoothness, consistency, and reliability.” In fact, he noted, “The biggest difference [between CCELL’s products and those manufactured by competitors] is the extremely low malfunction rate.”
CCELL executives are shy about personal publicity, and the company asked us not to identify anyone, including the marketing team, by name. Much of the interview was conducted in writing and with the assistance of translators to ensure nothing was lost in translation. The company’s responses appear below, lightly edited for nuances of American English.
How does CCELL approach the market?
As a manufacturer, our goal is to achieve a win-win for our business partners. We are humble enough to know our position and path and wise enough to know our strength and expertise.
We are fully aware of our clients’ concerns about quality level. In this industry, a manufacturer needs first-class quality to avoid return or replacement, which will damage our clients’ cash flow.
In addition, our core competitive advantage also includes the CCELL brand. We have done a lot of branding activities both online and offline and have successfully set up a reputation for reliability in the business-to-business market. We are committed to being the Microsoft of vaporizers.
What are your best-selling and most successful products?
CCELL’s best-selling product is the M6T cartridge. We believe our most successful products are PALM and DART.
PALM is CCELL’s first handheld vaporizer. Its battery capacity can support more than 250 puffs. With a slim design, pocket-size portability, lustrous metallic finishing, and a powerful battery, users are able to enjoy vaping almost whenever and wherever they want.
DART is the first CCELL product to include a constant-voltage battery, which means it is able to perform with consistency no matter how much battery life remains. In addition, DART incorporates the first-ever CCELL magnetic pod system—no more screw-on cartridges or magnetic adapters. DART Pod goes full-on plug-and-play, saving time for more fun, not work.
When DART was launched, it drew people’s attention immediately due to its futuristic look mixed with a touch of smoothness that the matte finishing provides and an ergonomic design. If you are looking for an amazing vaping experience with more consistency in a stylish, cool accessory, DART is your guy.
Quite a few of your customers have adopted DART. What analysis and process went into its development?
Vaping has become part of daily life for an increasing number of people. Rather than just relaxing at home, consumers want to be able to vape more conveniently. Different types of vaporizers have emerged and continue to emerge on the market, dramatically expanding consumers’ choices.
In addition to eye-catching appearance, product performance is the biggest factor that will influence consumers’ purchase. Based on these understandings, we decided to launch a product with excellent and stable performance, high portability, and attention-grabbing appearance. DART was born. Not only does it provide more powerful performance with 30 percent more vapor production compared to other brands, but it also has the highest level of consistency in the industry with just a tiny body.
CCELL constantly researches and develops new technology. As companies research, sometimes they discover things they didn’t expect. What developments over the years surprised you most?
Initially, our research and development direction was in the application field of e-cigarettes, but we found our products’ performance in the field of high-viscosity extracted oil was also very superior. That was a nice surprise we had not expected.
In any industry, patterns constantly shift in sales, consumer response, technology adoption, etc. This is particularly true in cannabis, which is a young, rapidly changing industry. What developments have you found most exciting?
The shift to concentrates. The segment started small and now accounts for 40 percent of the market. That’s exciting.
What do you predict will be the next big developments in vape technology?
The direction of technology development in the near future will be toward interactive systems, safety, and dosage control. We believe the next generation of vaping technology will provide consumers with more effective and efficient experiences with safety borne in mind. Our fundamental research institute is currently doing some interesting research, such as air path simulation software, new heating materials development, human absorption efficiency tests for medical devices, strengthening product functional orientation, and so on. Meanwhile, vaping technology development will keep pace with the development of oil extraction technology.
Will any OTHER technology ever replace the vape? If so, what kind of technology will it be?
We don’t think vapes will be replaced, because we believe the changes vaping technology brings to people’s consumption and lifestyle are beneficial and sustainable.
Vaping consumption offers advantages of portability, odor-free use, discreetness, and dosage control. Other than that, vaping does not require the high-ignition temperature mandatory for smoking (above 2,000 degrees Fahrenheit) and therefore is less likely to produce carcinogens. Vapor also is absorbed more efficiently by the human body. Compared to tinctures, topicals, and edibles, vaping consumption takes only several minutes to take effect, which is the fastest. Those advantages won’t be replaced by other technologies anytime soon.
CCELL has watched the cannabis industry grow and change for thirteen years. What changes have been the most positive?
From our observation, positive changes definitely include legalization and education. Almost every participant throughout the entire supply chain is becoming more and more knowledgeable about the industry. Everyone has started to pay more attention to quality, technology, and the brand behind the products. The industry stands only to gain from those factors.
On the other hand, we’ve noticed there are still a number of companies that are aggressively pursuing low cost, which causes inferior products being used by consumers without knowing it.
How does CCELL plan to expand its market in 2019?
Driven by [our quest for] optimum user experience, we have spent a lot of time and energy in vaping platform innovation. We plan to continue providing more desired and unique products to consumers. We will also cooperate with our local distributors to provide localization services this year.
