Is the vape market a place to make quick money?

In the past few years, the sudden popularity of vape has made many people see the business opportunities of vape. However, from the changes in the market, we feel that the vape market is a place to make quick money, and the vape market has become a market for quick success and instant profit. Because we can distinguish the vape market from other product markets, the biggest feature of the vape market is "fast".

We can benchmark the mobile phone market. Mobile phones basically upgrade their own products every year, that is, they update their mobile phones every year. This is a faster update for other products. However, vape is faster, and many vape products can be upgraded a few times a year. It can also be seen that vape companies are very urgent to occupy the market.

We may have a herd effect in every emerging market with huge potential, but it doesn't seem to be developing as fast as the vape industry in any emerging industry.

In fact, the rapid development of an industry does not mean that everyone wants to make quick money in this industry, so why does the rapid development of the vape industry make people think that it is a reason for making quick money?

We all know that the potential of vape is huge, but its risks are undoubtedly huge. I believe that most vape companies are aware of this hidden danger, so this has attracted a large number of companies to enter vape, which is undoubtedly because vape can earn money. The reason for the quick money, after all, as long as you can stand firm in the vape industry for a few years, you can make a good profit. This win-lose ratio is quite high.

Vape is an industry that makes quick money. We can see it from the following two aspects.

First: Celebrities are vaping and even creating their own brands

The vape officially entered the outbreak probably at the beginning of the juul acquisition in 2018. A company that has only been operating for a few years has been sold for 10 billion US dollars. This is undoubtedly an acquisition that shocked the world, and many people who were still waiting to see the vape market. Made the decision to enter the vape market.

After get off work in 2018, a brand of vape received USD 10 million in Pre-A round of financing from ZhenFund, which can be said to be the beginning of domestic venture capital for the vape industry. Beginning in 2019, Zhu Xiaomu, a former core member of Hammer Technology, founded a vape brand; Cai Yuedong, the former founder of Uncle Tongdao, announced that his second vape brand will be available for sale.

The most successful is the RELX brand vape established by the head of Uber China in 2018. In 2018, RELX announced the completion of the first round of financing of 38 million yuan. After a year of development, RELX has become a leading domestic vape company.

In the short two months from the end of 2018 to the beginning of 2019, many well-known Internet people and media people announced the launch of the vape brand. Let this electronic-flavored "cigarette" become an entrepreneurial outlet for a while. At the same time, many entrepreneurs and capital have also begun to gather in this industry.

Second: The factory is also rapidly transforming and wants to enjoy the dividends of this wave of vape market

According to statistics, more than 90% of the world's vape comes from Shenzhen and its surrounding areas. In Huaqiangbei, a world-renowned electronic product distribution center, you can see that many counters selling vape have also sprung up.

Since the end of 2018, many customers have visited Huaqiangbei, Longgang, Baoan and other enterprises in the electronic industry to consult the vape OEM business. This trend has allowed some companies to see the business opportunities behind vape, so they have started in a short time. transformation.

At this time, the vape industry was very mature, and the barriers to entry were very low. Manufacturers only needed to buy a set of assembly lines to start assembling vape. All kinds of raw materials could be purchased nearby, and the deployment of e-liquid was also quite convenient. e-liquid manufacturers can prepare e-liquids that they are satisfied with in a few days.

Driven by the hot vape market, many factories that were originally engaged in other products are actively transforming, purchasing production lines and assembly lines to manufacture vape. It is understood that there are more than 100 large-scale production plants in Longgang and Baoan.

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