Why capital favors vape
The development of any industry is inseparable from capital, especially in the vape industry. The vape industry is a fast-growing industry. Everyone in the vape circle knows that speed is money. As long as you are fast enough, you can have the advantage of time difference. , this time difference is likely to be the difference between success and failure, and capital can accelerate the effect.
In November 2018, a vape brand received 300 million Series A financing, which shocked many companies. Compared with other electronic industries, the financing gap of several million is too large.
The entry threshold for the vape industry is very low. You only need to register a brand. After the brand application is accepted, you can find the corresponding vape manufacturer for OEM customization. You may know nothing about vape technology. You just need to build your own sales channel.
Vape is a brand new outlet, but its prospects also make people in the vape industry feel deeply worried. This worry is not about whether their products are good or not, or the difficulty of sales channels, but when the control of vape will be. arrival.
Everyone also knows that the control of vape will come sooner or later, so if we want to make huge profits before the control comes, we must accelerate our speed. Capital is a good means of acceleration. As long as the funds are in place, from vape research and development and The debugging of e-liquid, and the establishment of the market, can be done in a month. It is difficult to imagine such a speed for other industries.
A very important advantage of the entry of capital is the establishment of offline channels. We know that the main sales channel of vape in the past few years is the e-commerce platform, but there are almost no vape brand points offline. This is because the establishment of online channels is more important. Easier and faster.
Offline physical store channels are much more difficult. If funds are insufficient, it may take several years to establish a small-scale offline channel. The entry of capital is completely different. Just like a certain brand of vape, only the seller of the physical store needs to provide the corresponding venue. After signing the contract, the brand owner is responsible for the decoration and distribution of the store, and the owner of the physical store only needs to It is enough to be responsible for the rent of the storefront. This condition is very attractive, and the attraction to many people who have insufficient funds and want to do physical stores is absolutely huge, so the brand has established itself in all parts of the country in just one or two time. offline sales channels, all thanks to the entry of capital.
Mature upstream and downstream suppliers have also made many capitals willing to invest in the vape market, because investing in vape not only has huge returns, but also has one of the best realisation speeds.
The principle of vape is very simple, and the manufacturing is not complicated. Many companies that have just switched to vape production can produce vape stably and quickly after more than ten days of running-in. The e-liquid manufacturers supporting vape are basically concentrated. In the Pearl River Delta region, brand owners can travel up and down the vape industry in one day.
Such a convenient industry chain undoubtedly makes many capitals have great confidence in the vape industry. After all, time is also a risk for capital. In addition to getting rich returns from investing in the fast and convenient vape industry, the risk is also much lower.
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