Luxury Chemical Corporation Raises Cash and Shares in Relx, Switzerland
Chinese e cigarette business giant RELX Technology has officially been listed in the New York Stock Exchange (NYSE) under the symbol RNX. The intra-day trading jump of APR compared to the same day previous was 102%. The sudden jump was triggered by a press release issued by the company in the morning stating that they had formed a new subsidiary, namely Relx Electronics Ltd. to exclusively manufacture electronic cigarettes. The release further stated that this subsidiary will be utilizing the technology provided by SmokeFree2. This is the second major company in China which has decided to begin the production of electronic cigarettes.
The first company which produced e-cigs and vaporizing tobacco was the Luxury Chemical Corporation. They were one of the earliest brands when it came to electronic cigarettes and their products sold for about two hundred dollars. They have since then released an updated line of products, including some of the best selling varieties and have seen a steady increase in their profit margin. According to data from the Chinese State Economic Information Service, relx electronics has sold over six billion packs of cigarette in the last three years alone.
A significant growth has been observed in the Chinese market for the past two months. The sales of relx cigarettes increased more than twenty percent compared to last year, and the shipments more than doubled. The stock of relx stock has also increased dramatically. The market capitalization of relx companies has increased from almost four billion to six billion rubles.
Relx uses two kinds of technology to produce e cigarette brands. The first is a smoking alternative that provides a sort of electronic cigarette with the same taste and flavor as real cigarettes. The second is a liquid base product that makes it easier to refill than traditional refillable e Cigarettes. The second kind is the least expensive among the two. Most consumers believe the e cigarette brands produced by the Luxury Chemical Corporation are the best tasting ones.
Most of the e cigarette wholesalers in the Chinese market do not advertise their business. It is not rare to come across a seller who would not even reveal his address and telephone number in public places. This may be because these cigarette wholesalers sell in bulk and hence the prices are kept low. Advertising is essential to increase sales and the Luxury Chemical Corporation has been advertising actively in online media to raise its profile in the wholesale e cigarette market in China.
There is no information as to how many people are buying e cigarettes. Estimates put the number at less than five percent, although this could be an underestimate. It is estimated that at least a few hundred thousand individuals in China are buying e cigarette from online sources. The majority of the users are likely teenagers and young adults. Luxury Chemical Corporation has been trying to expand its market share in China by offering its e cigarette wholesale products to local wholesalers who will then sell it to retailers.
In this wholesale market the company is trying to compete with other cigarette companies like Lungking and Quesada. This competition has helped the company to sell its e cigarette at a cheaper price, attract more customers and to expand into new markets. As mentioned earlier there are no clear figures as to how many e smokers are currently using the Luxury Chemical Corporation’s products, however the company claims that they have reduced the smoking rates of young adults by as much as fifteen percent in China alone. This would indicate a brisk rise in business.
Luxury Chemical Corporation also promises that it will introduce further enhancements to its products and services. These will include further research on anti-depressants and other pharmaceutical drugs that can help smokers to quit smoking. They claim that this would increase their market share in the e cigarette wholesale sector. Luxury Chemical Corporation is planning to launch two new models of its e cigarette in the next few months. Initial efforts have shown that its e cigarette products are popular among its target customers.