vape offline competition is fiercer
The vape market has experienced a seller’s market to a buyer’s market. Before 2014, there was basically no competitive pressure in the vape industry. At that time, whether it was online or offline, there was little competition in the vape market, and the entire vape market belonged to the blue ocean. However, after 2014, vape has gradually turned to the buyer’s market. In 2019, the vape market will enter the domestic vape circuit with intensive capital. Just as everyone is preparing to make a big splash in the vape market, November 1st. With the introduction of the sales ban, vape ushered in a big blow, and suddenly died down.
After that, vape almost thought he was sentenced to death. However, in 2020, an vape offline battlefield without public opinion is fought extremely fiercely. The industry recovers in the second half of 2020. The vape market already exists, and user demand is strong. Online is banned. But it can still be sold offline, so vape competition began to shift to offline physical stores.
The main reason for the fierce offline competition of vape is that the physical store of vape brand is still a blank market. Although the physical store of vape has been around for many years, it has even been popular for a while, but those are basically all kinds of brands. vape and e-liquid are sold together and are not part of an exclusive brand. Whoever can grab the offline market has the first opportunity to gain a foothold in the vape market, so in order to grab the market, major brands have resorted to price wars to seize the market. There has not been such a fierce price war before the online ban. This move has made some small brands that have been deployed in the offline market step by step to an end. These price wars are not affordable for small brands.
Another reason for the incentives for offline competition is the low entry barrier for vape. Most vape stores actually have an area of no more than 20 square meters, and some are even the size of a counter or a pillar in a subway business district. Just surround the cabinets. In such a store, the cost of decoration and purchase will not be too high. In order to quickly seize the market, some brands only need to provide the store, and the brand is responsible for the decoration and distribution. In this way, the cost will be lower. Therefore, offline vape physical stores have been blooming in recent years, and a city can squeeze thousands of vape physical stores.
Price wars have made it difficult for small brands to gain a foothold. The vape market is a market with huge potential. Many capitals have been eyeing the vape market from the beginning. Therefore, once the vape matures, the vape market will immediately enter the crazy development, no matter what industry. , Crazy development will eventually usher in a price war. The vape industry just happens to be an alternative. It has just been popular and immediately ushered in a fierce price war.
In November 2019, after a large amount of capital entered the vape industry about a year, many emerging vape brands are still in the product development stage and are still in the promotion stage. The announcement of a paper will shock the entire vape industry. At this time, many vape brands began to sell their products in clearance style. Some vape brands even reduced the price to one-fifth of the original market price, or even lower, which is already lower than the cost price. And brands that want to stay in the vape industry can only lower their prices appropriately and do not participate in the price war, because they believe that this kind of price war is only short-term. As long as this batch of products is sold out, the price will still return. To the original price.
However, the actual situation is not optimistic. After the short-term clearance sale, the offline price came immediately. The gross profit of vape was around 50%-60%. After the price war, many merchants lost money. This is not only the case for some brands, but the situation for each brand is roughly the same. Only when the point location is good and the traffic is large, it is possible to really make money. Compared with large brands, small brands of vape have small capital strength and high dependence on cash flow. Under the baptism of subsidy wars, the living environment of small brands of vape has become even worse. In short, the offline vape market is now competing Very fierce, small brands are difficult to survive, and the prospects are still confused.
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