Opening a Vape Shop Can Be Profitable and Support UK Retail Growth
Is opening a physical vape shop profitable? In China, many investors who are optimistic about the vaping industry have this question. In fact, the vaping industry has long been mature and booming overseas. Even with IQOS banned domestically, its strong sa
Is opening a vape shop profitable? Many people in China who are optimistic about investing in the electronic cigarette industry have this question. In fact, the electronic cigarette industry has already matured and flourished abroad. The ban on IQOS in China, yet its significant sales, indicates some clues. There are many reports analyzing the financial prospects of the electronic cigarette industry abroad. A report by Philip Morris shows that the number of vape shops has increased more than 30 times in the past five years, providing a new retail boost for struggling street economies.
Philip Morris, responsible for the sales of tobacco brands in the UK, is one of the main suppliers of smoke-free products and represents the tobacco industry at the Center for Economic and Business Research. This report found that the number of vape shops in the UK increased from fewer than 100 in 2013 to 2,850 this year. It claims that sales of electronic cigarette products reached £1 billion in 2017, and this figure is expected to double by 2020.
The report also emphasizes that vape shops are becoming an important presence on the streets, while other retailers are struggling. Reports indicate that during a period when the number of newsagents fell by 21% and grocery stores by 15%, the number of vape shops increased by 2,750% from 2010 to 2017. Research conducted for the report shows that the increase in vape shops has also impacted the broader economy, as 40% of these shops operate in previously vacant locations, directly employing nearly 6,000 staff and bringing more economic benefits.
Another interesting finding from this report is that the increase in vape shops coincides with a significant decline in smoking rates in certain areas. The Northwest is the region with the highest number of vape shops in the UK, with 456 shops, one for every 2,000 smokers. This region also saw the largest decline in smoking rates in the UK, with a 4% drop from 2013 to 2017.
Mark MacGregor, Director of Corporate Affairs at Philip Morris UK, said: “This study clearly shows the significant contribution that vape shops are making in helping smokers quit cigarettes. Vape shops play a very important role in raising awareness of various smoking alternatives.”
In fact, not only in the UK, the number of vape shops is also increasing significantly in China. In recent years, the domestic electronic cigarette market has been growing rapidly, with a growth rate of 67.97% from 2012 to 2017, and reaching 344% in 2016.
We all know that the electronic cigarette market is mainly concentrated overseas, accounting for over 90%, while China's share of the global electronic cigarette market is only a few percent. According to the "2017 World Tobacco Development Report," the penetration rate of electronic cigarettes in China is less than 1%. Although the data shows that electronic cigarettes have not yet become widespread in China, I believe that the potential of the electronic cigarette market in China is enormous, as there are about 400 million smokers in our country, making it the country with the largest smoking population. Due to policies not being fully relaxed and insufficient market promotion, the current proportion of electronic cigarette consumers among smokers is still relatively small. However, as the public's health awareness gradually increases, the market capacity for electronic cigarettes as smoking cessation products will further expand, and the demand for electronic cigarette products in the future will be huge, leading to rapid development of the domestic electronic cigarette market.
Philip Morris, responsible for the sales of tobacco brands in the UK, is one of the main suppliers of smoke-free products and represents the tobacco industry at the Center for Economic and Business Research. This report found that the number of vape shops in the UK increased from fewer than 100 in 2013 to 2,850 this year. It claims that sales of electronic cigarette products reached £1 billion in 2017, and this figure is expected to double by 2020.
The report also emphasizes that vape shops are becoming an important presence on the streets, while other retailers are struggling. Reports indicate that during a period when the number of newsagents fell by 21% and grocery stores by 15%, the number of vape shops increased by 2,750% from 2010 to 2017. Research conducted for the report shows that the increase in vape shops has also impacted the broader economy, as 40% of these shops operate in previously vacant locations, directly employing nearly 6,000 staff and bringing more economic benefits.
Another interesting finding from this report is that the increase in vape shops coincides with a significant decline in smoking rates in certain areas. The Northwest is the region with the highest number of vape shops in the UK, with 456 shops, one for every 2,000 smokers. This region also saw the largest decline in smoking rates in the UK, with a 4% drop from 2013 to 2017.
Mark MacGregor, Director of Corporate Affairs at Philip Morris UK, said: “This study clearly shows the significant contribution that vape shops are making in helping smokers quit cigarettes. Vape shops play a very important role in raising awareness of various smoking alternatives.”
In fact, not only in the UK, the number of vape shops is also increasing significantly in China. In recent years, the domestic electronic cigarette market has been growing rapidly, with a growth rate of 67.97% from 2012 to 2017, and reaching 344% in 2016.
We all know that the electronic cigarette market is mainly concentrated overseas, accounting for over 90%, while China's share of the global electronic cigarette market is only a few percent. According to the "2017 World Tobacco Development Report," the penetration rate of electronic cigarettes in China is less than 1%. Although the data shows that electronic cigarettes have not yet become widespread in China, I believe that the potential of the electronic cigarette market in China is enormous, as there are about 400 million smokers in our country, making it the country with the largest smoking population. Due to policies not being fully relaxed and insufficient market promotion, the current proportion of electronic cigarette consumers among smokers is still relatively small. However, as the public's health awareness gradually increases, the market capacity for electronic cigarettes as smoking cessation products will further expand, and the demand for electronic cigarette products in the future will be huge, leading to rapid development of the domestic electronic cigarette market.
