Target Vape Users and the Smoking-to-Vaping Journey

This article is the first in a series about electronic cigarettes, titled #701 - Analyzing the user trajectory in the e-cigarette industry. After purchasing my eighth vaping device in 2018, I reduced my cigarette consumption from a pack a day to just 1-2 cigarettes daily. Quitting smoking is not easy, and I became curious about how this transition occurs.

Before discussing e-cigarettes, let's first talk about the user needs for traditional cigarettes.
1. Initial demand for cigarette consumption:

Initial demand: When first encountering cigarettes, the primary need they fulfill is social interaction.

1) Curiosity

"I see people around me smoking, so I want to try it and see what it feels like." A typical scenario is young people sneaking a puff from their elders' cigarettes or even picking up a discarded cigarette from the ground.

2) Conformity

"Everyone cool around me smokes, so I will too." In situations of conformity, it often involves someone offering you a cigarette to try. Whether it's a boss or a school bully, when people in your social circle smoke, you might want to join them. Once the desire to conform arises, and the cost of trying is low (just being handed a cigarette), will you give it a shot?

3) Identity expression

In social relationships, those who conform often do so to stand out (having personality, power, or uniqueness). Smoking can make one feel good about themselves, especially among teenagers. For adults, possessing cigarettes, especially "premium" ones, often reflects their identity. A classic example is the difference between smoking Zhonghua and Li Qun, which signifies different social statuses.

2. Long-term demand for cigarette consumption:

Subsequent craving needs: Corresponding to the initial "social" need, craving needs stem from the "original sin of nicotine."

Most people experience a cough the first time they smoke, leading to a split in the user group. Some will continue to develop a smoking addiction due to ongoing social relationships, while others will reject cigarettes due to the unpleasant coughing sensation. This rejection is often "temporary" because social dynamics are constantly changing, and the next opportunity to conform or appear cool may arise at any moment.

1) Nicotine addiction

Nicotine, commonly known as tobacco alkaloid, is a highly addictive chemical substance. When nicotine enters the body, it is transported through the bloodstream and can cross the blood-brain barrier, reaching the brain in about 7 seconds after inhalation. Once nicotine reaches a certain concentration, individuals become dependent on it. When cravings hit, not smoking can be very uncomfortable. Satisfying the craving: After consuming some nicotine, the discomfort caused by cravings can be alleviated, but it does not produce much pleasure. In fact, excessive nicotine can lead to dizziness and even vomiting.

2) Hand cravings

Cravings can also manifest as hand cravings. Some smokers, when trying to quit, often want to put something in their mouths, leading them to substitute cigarettes with snacks, which can result in weight gain.

When cravings hit, hands tend to obey the brain's commands, reaching for cigarettes in pockets or on tables. The hand-brain connection is strong.

3) Psychological cravings

After developing a long-term dependence on nicotine, many aspects of life become intertwined with smoking:

A cigarette after meals; a cigarette upon waking; a cigarette during bathroom breaks; a cigarette after sex; --> surpassing the enjoyment of betel nut and cigarettes --> is it really that magical?

The fascinating thing about nicotine is that if you believe in it, it can make your brain feel satisfied. If you don't believe, then indeed, there is no magic.

3. How the demand for cigarettes is met:

(Flow product)

A cigarette that costs 2 yuan at the factory, after layers of taxation and distribution, ends up costing consumers 15 yuan, 40 yuan, or even 100 yuan per pack. Some retail stores make only 50 cents per pack; why sell at such low profits? Because of the flow.

(Great channel business)

Water is the source of life; wherever you can buy water, you can buy cigarettes. Most adults see cigarette sales channels primarily in supermarkets, convenience stores, and tobacco shops. ---> This part satisfies the "craving" need. It means that when cravings hit, you can find a solution within a minute's walk. Efficiency is extremely high.

(Great products - self-sharing attributes)

For the initial social need, the solutions provided by tobacco products are also impressive:

1. Each pack contains 20 cigarettes, allowing for easy sharing;

2. One lighter is enough; I can even light it for you;

(Fine management of small channels - targeted solutions for vertical customer groups)

1. Selling single cigarettes for 5 cents/1 yuan --> directly lighting it for you (targeting youth vertical groups) 2. Soft Zhonghua at 30 yuan, sold at a 10 yuan premium per pack. In reality, it's the same product, just with different production lines. It can be marketed as "premium" (for customers willing to pay an extra 10 yuan to showcase their identity). 3. Tsinghua's centennial edition sold for 10,000 yuan per box. Because there exists a group that needs to "express identity," it becomes a premium gift.

The business models at various stages of the cigarette industry chain are truly impressive, being extremely strong in products, brands, channels, and markets. If e-cigarettes want to long-term consume the cigarette market, how should they play?

In the next article, we will first study the role of e-cigarettes and the user trajectory of e-cigarettes.

Original: He Shunjie