How Should E-Cigarette Manufacturers and Wholesalers Face Challenges and Opportunities?

In 2019, the e-cigarette industry appeared set to double in growth. At such a promising time, many people may have forgotten the wave of factory closures among e-cigarette manufacturers and wholesalers in 2014. This article looks back at what those e-cigarette manufacturing and wholesale factories went through during that period.

Let’s go back to the end of 2013, when overseas buyers were stocking up in large volumes. Yet e-cigarette manufacturers did not feel that peak season had arrived. Even though the e-cigarette market had been slow the year before, it had never been as sluggish as it was that year. In previous years, factories would be rushing to fulfill orders at that time of year. But now, most said they had no orders at all. Factories were quiet and deserted. In the past, employees were not allowed to take leave; now, management hoped they would. If an employee asked for one day off, it was approved. Ask for two days, and that was approved as well.

Some e-cigarette manufacturers were operating normally just a few days earlier, only for the boss to suddenly disappear. Others did not run away, but were left heavily in debt. Some companies that had been very well known a few years earlier had now shut down and long since been abandoned. The e-cigarette market was in a miserable state. This was something the industry had never seen before!

Many e-cigarette business owners now felt confused, helpless, and powerless. What should they do? What exactly should they do? In fact, everything has two sides. A crisis is both danger and opportunity. The future of the e-cigarette industry is not necessarily pessimistic; the industry as a whole is still growing. If you think about it carefully, the wave of closures in the e-cigarette industry was actually inevitable. As e-cigarette consumption grew rapidly, many people saw money being made in the business and rushed in, leading to serious oversupply. It would have been stranger if this had not happened. The e-cigarette industry is now in a period of survival of the fittest, and only the best will remain. The slower business gets, the more important it is to think and operate against the trend. Hold on through this difficult period. The following words are for those companies still remaining in the e-cigarette industry.

1. The product trap: the less business you have, the more you must dare to develop new products. Never fall into the vicious cycle of having less business, then doing less R&D, then having even less business, until you finally shut down.

Suggestion: when business is slow, lower your gross margin a bit and accept small orders too, even if it means working harder. Keep products under control and update them regularly: produce one batch, upgrade one batch, and clear one batch. Use frequent updates to accelerate product turnover. Keep the product line fresh and full.

2. The cost trap: the less business you have, the more willing you need to be to spend where necessary. Do not fall into the cycle of cutting expenses so hard that you are reluctant even to turn on the lights, let alone the air conditioning. Without lights, the company looks like a “shady shop,” which drives away business. Without air conditioning, the environment feels poor; when customers walk in and find the place cold and lifeless, they may not even dare place an order. Naturally, business gets worse, and you fall into a vicious cycle of excessive cost-cutting.

Suggestion: when business is bad, increase spending reasonably. Turn on all the lights, hold more promotional activities, and give away more free samples.

3. The staffing trap: the less business there is, the more reluctant companies become to hire, and the more eager they are to fire people in the name of cost control. But the more you do this, the less energy your company has, and the more empty it feels, creating another vicious cycle centered on people.

Suggestion: when business is slow, hire people and build momentum. Let your team bring energy back into the company and change the atmosphere. If there is no business, use the time to train your people and build your team.

4. The mindset trap: the less business there is, the worse the boss’s temper becomes. The more stern and irritable the boss is, the less motivated employees become, and the more lifeless the workplace feels. When business is poor, employees also become lazier and less willing to act. They are more likely to look for shortcuts and rely on clever tricks. This leads to a vicious cycle of mentality.

Suggestion: the less business there is, the more important it is for the boss to maintain a good mindset and keep a smile on their face. Continue giving employees confidence and the team positive energy. Lead the whole workforce into action. Keep planning your own dreams and the dreams of the team. Because when perseverance is hardest, it is often dreams that give us the power to keep moving forward. If we focus on products, build strong teams, improve service, pay attention to details, maintain a positive mindset, and learn to persevere, then business will gradually improve. Great wisdom in life lies in knowing when to give in order to gain—without giving, how can there be any return?

We can build a company system, begin trying to establish and sell our own brands, and start testing both online and offline in the domestic market. Improve brand promotion efficiency and continue refined brand operations. Offline, accelerate channel expansion, increase market concentration and reputation, seize market opportunities, fill temporary market gaps, and establish a leading position in the e-cigarette industry. #p#Page Title#e#

We know that when business is bad, not many people can do these things. Only successful people understand contrarian thinking, so now that the e-cigarette market is booming, we should seize this opportunity even more firmly. If you are also looking for a reliable e-cigarette manufacturer or wholesaler for sourcing, you can contact WeChat: vapeos, or call our e-cigarette market manager at: 17682343645