Victor Shelton on ZLAB’s Journey: Innovation, Customization, and the Future of Vaping

Victor Shelton is no stranger to the world of entrepreneurship. From his early ventures in Brazil to founding one of the most innovative vaping companies, ZLAB, his journey is one of persistence, adaptability, and vision. In this exclusive interview, he discusses the origins of ZLAB, the challenges faced in a rapidly evolving industry, and how the company is redefining the vaping experience through innovation and customization.

• Tell us a little bit about yourself. What’s your background? What other companies have you founded?

Certainly! My name is Victor Shelton, and I'm what some might call a serial entrepreneur. My journey in business began during my early teenage years in São Paulo, Brazil. I capitalized on the early days of the internet by developing websites for local businesses, which ignited my passion for technology and entrepreneurship.

Over the years, I've founded several companies. In Brazil, I started a trading company specializing in importing electronic products from Asia, and I launched a telecommunications service focused on SMS messaging and phone-based marketing. One of my most notable ventures was Pay2Go, one of the country's first food delivery fintech companies. It gained recognition from “Exame,” a leading Brazilian business magazine, and was considered one of the most attractive Brazilian startups of the early 2010s by several venture capital funds.

All these experiences paved the way for my next big adventure, which has taken me around the world on a mission that has guided my life over the last ten years.

• What is the story of ZLAB? When and how was the company created? What inspired you to get into the vaping industry, and how has your vision evolved over time?

ZLab was founded in 2015, but the story really begins a year earlier. In 2014, I found myself struggling to find my preferred electronic cigarettes, which highlighted a significant gap in the market. I noticed that while there was a growing demand for healthier alternatives to traditional cigarettes, many companies entering the vaping industry lacked manufacturing expertise. They focused primarily on marketing and distribution, outsourcing production without emphasizing quality design and manufacturing.

Seeing this bottleneck, I realized there was an opportunity to make a real impact. I assembled a team of skilled chemists and engineers and set up operations in Shenzhen, China—the heartland of global manufacturing. From there we were set to conquer the world.

Over time, my vision has evolved from addressing a market need to fundamentally changing how people perceive and engage with vaping products. We're committed to pushing the boundaries of what's possible in our industry, continually enhancing our products to offer superior experiences. I believe that by focusing on quality and innovation, we can make a positive impact on people's lives around the world.

• What is ZLAB's mission?

At ZLab, our mission is to revolutionize the way people transition to healthier alternatives by providing high-quality, effective products. We are dedicated to helping adult smokers move away from traditional cigarettes by offering innovative solutions that make this change seamless and satisfying. Through relentless innovation and a commitment to excellence, we strive to enhance people's experiences and positively impact their lives. Our goal is not just to create products but to facilitate a healthier lifestyle for our users around the world.

• What was ZLAB's first product?

Our first products at ZLab were 1ml pods and simple vaping devices. From the very beginning, we had a strong pulse on consumer preferences, which allowed us to create products that resonated with our audience. We quickly developed a system for rapid iterations between consumer feedback and product innovation, especially when it came to flavor creation. This agile approach enabled us to continuously refine our products based on real user experiences. As a result, our vapes gained significant popularity, and our first generation of products sold more than 300 million units globally.

• What challenges did you face in the early days of ZLAB, and how did you overcome them?

In the early days of ZLab, we faced several significant challenges. One of the biggest was moving to a new country to start our venture in a completely different jurisdiction. Relocating to Shenzhen, China, meant navigating a new culture, language, and regulatory environment, which was not easy. While we were well-acquainted with manufacturing and electronics, establishing ourselves overseas required a great deal of adaptability and perseverance.

Building the right team was another hurdle. We needed to work very closely with our engineers, chemists, and product designers to bring our innovative products to life. However, when we were still relatively small in scale, hiring the number of blue-collar workers needed for production wasn't easy. Recruiting skilled labor in sufficient quantities was challenging, and we had to be creative in our hiring practices to meet our production goals.

Additionally, demand for our products was quite uncertain, and the industry was subject to rapid and extreme changes. This made budgeting and planning extremely difficult. We had to be incredibly agile in our approach, constantly adjusting our strategies to accommodate market fluctuations, evolving consumer preferences, and regulatory requirements.

We overcame these challenges through hard work and a steadfast belief that perseverance pays off. By staying committed to our vision and maintaining close collaboration with our team, we were able to innovate quickly and effectively. Our agility in budgeting and planning allowed us to be ahead of the industry, adapting to market changes and meeting new consumer demands. These experiences not only helped us overcome initial obstacles but also laid a strong foundation for ZLab's future growth.

• Can you describe a defining moment in ZLAB's history that significantly shaped the company?

At ZLab, we believe that our defining moments are continually unfolding—they are in the future as much as in the past. We're always moving forward, pushing the boundaries of what's possible. One of the most significant experiences that continually shape our company is the incredible pleasure we feel each time a product design transforms into a solid prototype that surpasses our excellence standards and delivers an incredible user experience.

These moments, when our prototypes break the excellence hurdle we set and become commercial products, are truly magical for us. This process goes beyond engineering and science; it's about refining every detail to achieve the ultimate product experience. This is where the magic happens, and it's what truly defines ZLab. We're not just creating products—we're crafting art and magic.

We're obsessed with creating genuine utility for our customers, and I don't think anyone else in the industry operates quite the way we do. Each time we bring a new, perfected product to market, it's a defining moment that reinforces our commitment to innovation and excellence. These collective moments continually shape our company and propel us forward.

• What is the state of ZLAB now in terms of facilities, workforce, and global reach?

Currently, ZLab owns and operates state-of-the-art laboratories and manufacturing facilities in China and the United Arab Emirates (UAE). Over the years, we've significantly expanded our operations to meet the growing global demand for our products. In addition to our manufacturing capabilities, we manage our own distribution centers and commercial offices in the United States, Canada, the United Kingdom, South Korea, and the UAE. This extensive network allows us to efficiently reach customers across the world.

Our workforce has grown to over 2,500 employees spread across dozens of countries. This diverse and talented team is the backbone of our company, driving innovation and ensuring the highest quality in everything we produce. In just nine years, we've sold hundreds of millions of units globally. This success reflects not only our commitment to excellence but also the trust and support of our customers worldwide.

• How do you ensure innovation at ZLAB? What role does consumer feedback play in product development?

At ZLab, innovation is at the heart of everything we do. We ensure it by placing our customers at the center of our operations. Our agile structure allows us to stay grounded and in tune with our clients, constantly feeling their pulse and understanding their evolving needs. We swiftly incorporate feedback into our products and services and feed it into our "idea factory" for new designs. This close collaboration with our customers enables us to create products that truly resonate with them.

We're particularly obsessed with iterations and gathering feedback on designs and early prototypes. This iterative process ensures that we refine our products to deliver the ultimate user experience. While we are deeply client-centric, we're also unafraid to lead with disruptive ideas that may not have been envisioned by our stakeholders. We believe in having the courage to pursue bold innovations when our conviction is high.

Innovation at ZLab isn't just about keeping up—it's about pushing boundaries and redefining what's possible in our industry. We foster a culture that encourages creativity and out-of-the-box thinking. By blending customer insights with our passion for groundbreaking ideas, we strive to create not just products, but experiences that set new standards. This approach ensures we remain at the forefront of the industry, continually offering our customers something truly exceptional.

• Can you elaborate on the thought process behind the creation of Z-Land and the focus on customization?

The creation of Z-Land was driven by our desire to bring true innovation to the vaping industry and to offer consumers something genuinely new and exciting. We noticed that many vaping enthusiasts were growing bored with the repetitive offerings available at local vape shops, convenience stores, and supermarkets. While there wasn't a shortage of new vaping products on the market, many felt like more of the same—gimmicks like playing games on devices or designs that didn't enhance the actual vaping experience. These didn't appeal to users who were seeking quality puffs and an effective way to transition away from traditional cigarettes.

Understanding this, we set out to design a product that prioritized maximum consumer freedom and personalization. We wanted to empower users to customize their flavors according to their own preferences, offering almost limitless flavor pairings. This led to the development of the revolutionary Z-Land ecosystem, featuring ZLand, ZColors, and ZJoins.

The centerpiece of this ecosystem, the ZLand device, features a powerful 1200 mAh battery and allows users to mix up to three prefilled ZColors pods. This offers over 125,000 unique flavor combinations—an unprecedented level of customization in the vaping world. Users can even activate a "boost mode" for an extra kick of a particular flavor. Our aim was to cater to the evolving preferences of modern consumers who value personalization and control over their experiences.

The thought process behind Z-Land also heavily focused on seamless integration of design and functionality. We wanted the device to be not just functionally superior but also aesthetically pleasing. The ZColors pods are stackable and magnetically connect to the ZLand device, offering an intuitive and enjoyable user experience. The tactile feel and the satisfying click of the connecting parts were designed to resemble a high-end tech device rather than a typical vaping product.

• The vaping industry is highly competitive. What sets ZLAB apart from other brands?

The vaping industry is indeed highly competitive, but there are several key factors that set ZLab apart from other brands.

First and foremost, our comprehensive position across the entire supply chain is a significant differentiator. Unlike most companies outside of Big Tobacco and their related entities, ZLab fully designs and manufactures its own products. Moreover, we also have significant commercialization and distribution capabilities. This vertical integration allows us to maintain exceptional quality control, streamline operations, and respond swiftly to market changes. Our ability to manage every aspect of the supply chain in-house requires deep expertise, advanced technical capabilities, and strong partnerships with customers, suppliers, and distributors. This intricate and well-coordinated system forms the core of our competitive advantage, creating a robust moat that protects us from many of the challenges faced by other brands in the industry.

Secondly, our extensive experience and understanding of the radical changes occurring in the tobacco industry give us a unique edge. We've navigated technological transformations and shifting demographics better than most competitors. This insight allows us to anticipate trends, innovate proactively, and adapt our strategies to meet the evolving needs of our customers. Our ability to stay ahead of these changes ensures that we remain relevant and continue to lead rather than follow in the market.

Lastly, ZLab's unique structure combines the best of European design, precision, and passion with Chinese efficiency and scale. This blend allows us to create products that are not only aesthetically pleasing and highly functional but also produced with the efficiency and scalability needed to meet global demand. Our European design influence ensures that our products meet high standards of style and user experience, while our Chinese manufacturing base provides the capacity and cost-effectiveness to scale our operations rapidly. This synergy between design and manufacturing excellence enables us to deliver superior products consistently.

Overall, it's this combination of vertical integration, deep industry insight, and a unique blend of design and manufacturing expertise that truly sets ZLab apart from other brands in the highly competitive vaping market.

• Sustainability is a big topic these days. How does ZLAB approach environmental responsibility in its products and operations?

Sustainability is a fundamental pillar of ZLab, often overlooked in our industry, but absolutely central to our mission and operations. Our commitment to environmental responsibility is deeply intertwined with our goal to revolutionize the way people transition to healthier alternatives. I am a former cigarette smoker myself, as well as a significant part of my family, so I understand firsthand the importance of providing safer alternatives. This personal connection drives our dedication to creating products that not only help adult smokers move away from traditional cigarettes but do so in a way that is environmentally conscious and socially responsible.

Electronic nicotine delivery systems (ENDS), such as our e-cigarettes, are widely recognized as significantly less harmful than traditional tobacco products. According to a landmark study by Public Health England, e-cigarettes are at least 95% safer than smoking tobacco cigarettes. Similarly, the National Health Service (NHS) in the United Kingdom states that e-cigarettes are “far less harmful than cigarettes and can help you quit smoking for good.” These endorsements reinforce our commitment to providing products that reduce the health risks associated with smoking. By eliminating the burning of tobacco, our products do not produce tar or carbon monoxide—the two most damaging elements found in tobacco smoke—thereby offering a safer alternative for our users.

Beyond the health benefits, sustainability is at the core of our operational ethos. We recognize that sustainable operations are essential for the long-term success and ethical standing of our company. This involves managing our Environmental, Social, and Governance (ESG) impacts meticulously. We strive to operate ethically and efficiently, placing a strong emphasis on respecting the human rights of our employees and suppliers. Minimizing our carbon emissions is a key priority, and we are continuously seeking ways to reduce our environmental footprint through energy-efficient manufacturing processes and sustainable sourcing of materials.

Our commitment to sustainability also extends to maintaining healthy and transparent supply chains. We believe that excellent products are only possible through ethical behaviors and partnerships with top-quality suppliers who share our values. To formalize our dedication, we are in the process of developing comprehensive ESG policies and guidelines that will govern our operations and ensure that we uphold the highest standards of environmental and social responsibility.

Corporate Social Responsibility (CSR) is another critical aspect of our sustainability strategy. We actively contribute to the socio-economic development of the communities in which we operate, with a particular focus on health and education. Our CSR initiatives are designed to support public health campaigns, fund educational programs, and provide resources to help individuals quit smoking. By investing in these areas, we aim to create a positive impact that goes beyond our products, fostering healthier and more educated communities.

• What are your plans for the future? Any expansions or new markets planned?

Looking ahead, our goal is to become the largest independent e-cigarette player in the world outside of Big Tobacco. To achieve this, we are expanding our production capacity and growing our commercial network globally. We recently opened our office in the UK and are actively expanding further into Europe and Asia. Additionally, we have some exciting new announcements on the horizon that will support our growth and innovation strategies.

• How do you see the global vaping market evolving in the next few years, and where do you see ZLAB fitting in?

I believe the global vaping market will become more regulated and stable in the coming years, which will set higher standards for quality and safety. This environment is likely to lead to the consolidation of many independent players. At ZLab, we are well-positioned to lead this transformation. Our focus on quality, innovation, and supporting customers in their transition away from harmful cigarettes sets us apart. By maintaining our commitment to excellence and adapting to regulatory changes, we aim to be at the forefront of a healthier and more advanced vaping industry.

• What role do partnerships and collaborations play in ZLAB’s growth strategy?

Partnerships and collaborations are essential to ZLab’s growth strategy. We recognize that no company can thrive alone, especially when it comes to commercialization, distribution, awareness, and advertising. Our network of partners enables us to effectively bring our innovative products to market and expand our global reach. By working closely with key distributors and retailers, we ensure that our products are accessible to consumers worldwide. Additionally, collaborations with marketing and advertising firms help us build strong brand awareness and connect with our target audience more effectively. These strategic alliances not only enhance our operational capabilities but also drive mutual growth and innovation. At ZLab, we value these relationships deeply, as they are fundamental to our mission of leading the industry with high-quality, innovative solutions.