A New E-Cigarette Trend for 2019? Development Trends in E-Cigarette Brands
The e-cigarette industry in 2019 appears highly dynamic, with more and more capital entering the sector. However, few people truly care about brand building or how to build strong e-cigarette brands; most are still focused simply on selling products. In m
The e-cigarette industry in 2019 seems to be booming, with increasing capital entering the market. However, there are few companies that focus on building strong e-cigarette brands; most are simply focused on sales. I believe that to make money in the e-cigarette industry, one day we will need to pay more attention to articles and insights.
The only point I find somewhat biased is the claim of 100% profit margins. In a global business environment where customer acquisition costs remain high, such profits are unattainable. Take IQOS by Philip Morris in the European market as an example; despite having an extremely strong distribution network, acquiring a new IQOS user can cost the channel as much as 25-30 euros. The costs for domestic e-commerce are even higher, with reports indicating that customer acquisition costs for e-cigarettes in China have already exceeded 600 RMB. The opportunity costs and trial-and-error costs in offline sales are also significant.
Regardless, considering cross-industry opportunities, establishing an e-cigarette brand is still a worthwhile endeavor in a sluggish economy. It is a rare business that allows for high returns with a low entry barrier. Although one should not aim for a valuation of $38 billion, the future unicorns in this field are foreseeable. Moreover, now is the most cost-effective time to enter the e-cigarette brand market. The article "Crazy E-Cigarettes" has a high literary style, and there are many things I hesitate to say, but I want to clarify two points: one is policy.
1. The uncertainty of unclear policies is not as fatal as other uncertainties (such as long-term safety issues with atomizers). We can see that the domestic call for the e-cigarette industry is gradually rising. The state tobacco monopoly and regional economic development are two different groups at play.
2. There are basically no new FMCG categories; rather than trying to create another DYSON, it is better to develop a new e-cigarette. This business is fundamentally based on addiction, which is incomparable.
3. There is no need to encourage or discourage industry entrants. I believe the biggest risk lies in the quality of entrants. I have already seen some price chaos, and whether they can endure high profits like the eyewear industry remains to be seen.
4. Lastly, the role of industry associations as stabilizers is crucial. Beyond the old industry associations, we need to establish industry circulation associations. Manufacturing and circulation are two different matters. As long as the overall situation remains stable, everyone still has a track to run on, and we should avoid becoming another VCD industry.
Finally, if you also want to make a career in the e-cigarette industry, please contact us via WeChat: vapeos or call: 17682343645
I believe that the opportunities in the e-cigarette market in 2019 will definitely outweigh the challenges, and perhaps seizing this opportunity will lead to success!
The only point I find somewhat biased is the claim of 100% profit margins. In a global business environment where customer acquisition costs remain high, such profits are unattainable. Take IQOS by Philip Morris in the European market as an example; despite having an extremely strong distribution network, acquiring a new IQOS user can cost the channel as much as 25-30 euros. The costs for domestic e-commerce are even higher, with reports indicating that customer acquisition costs for e-cigarettes in China have already exceeded 600 RMB. The opportunity costs and trial-and-error costs in offline sales are also significant.
Regardless, considering cross-industry opportunities, establishing an e-cigarette brand is still a worthwhile endeavor in a sluggish economy. It is a rare business that allows for high returns with a low entry barrier. Although one should not aim for a valuation of $38 billion, the future unicorns in this field are foreseeable. Moreover, now is the most cost-effective time to enter the e-cigarette brand market. The article "Crazy E-Cigarettes" has a high literary style, and there are many things I hesitate to say, but I want to clarify two points: one is policy.
1. The uncertainty of unclear policies is not as fatal as other uncertainties (such as long-term safety issues with atomizers). We can see that the domestic call for the e-cigarette industry is gradually rising. The state tobacco monopoly and regional economic development are two different groups at play.2. There are basically no new FMCG categories; rather than trying to create another DYSON, it is better to develop a new e-cigarette. This business is fundamentally based on addiction, which is incomparable.
3. There is no need to encourage or discourage industry entrants. I believe the biggest risk lies in the quality of entrants. I have already seen some price chaos, and whether they can endure high profits like the eyewear industry remains to be seen.
4. Lastly, the role of industry associations as stabilizers is crucial. Beyond the old industry associations, we need to establish industry circulation associations. Manufacturing and circulation are two different matters. As long as the overall situation remains stable, everyone still has a track to run on, and we should avoid becoming another VCD industry.
Finally, if you also want to make a career in the e-cigarette industry, please contact us via WeChat: vapeos or call: 17682343645
I believe that the opportunities in the e-cigarette market in 2019 will definitely outweigh the challenges, and perhaps seizing this opportunity will lead to success!
