E-Cigarette Franchising: Key Issues to Watch
2018 was a breakout year for China’s e-cigarette market, especially for compact products more suitable for long-term cigarette replacement or smoking cessation. Just as previously predicted by WanYan, 2018 became the first year of pod systems. In addition
2018 was a booming year for e-cigarettes in China, especially for small devices that are more suitable for long-term smoking cessation or quitting. As predicted by the Smoking Network, 2018 would be the year of small devices.
In addition to the increasing popularity of e-cigarettes on e-commerce platforms, offline e-cigarette retail stores have also developed rapidly. According to incomplete statistics, there are now over 5,000 offline e-cigarette retail stores in cities at or above the prefecture level, doubling from 2017. Meanwhile, we have also noticed an increasing presence of e-cigarettes in micro-business channels on social media.
For teams or individuals without strong capabilities, how can they share in the e-cigarette boom? E-cigarette franchising is undoubtedly a good choice. So how do we choose e-cigarette franchising channels? Here are our thoughts.
1. Understand Your Own Advantages
E-cigarettes are very popular, but there are also many types of products, such as large box mechanical mods favored by enthusiasts, pod systems with replaceable cartridges, and disposable vapes. These three different forms of products cater to completely different audiences. To exaggerate, it is like the difference between trucks and sedans; you certainly wouldn’t see a store selling both trucks and sedans at the same time.
Therefore, you need to understand the resources or audience that prefer which type of e-cigarette.
2. Choose a Reliable Brand
Currently, there are at least hundreds of e-cigarette brands in China. What constitutes a reliable brand? We believe there are several aspects to consider:
1. Brand Endorsement: If there is a strong brand background, larger companies tend to operate more cautiously than smaller ones.
2. Product Reviews: In addition to checking e-commerce platforms, look at other platforms such as industry websites and Zhihu for genuine user reviews.
3. Brand Recognition: A well-known brand indicates strong operational capabilities; the principle that a good team produces good products is always true.
3. Purchase Samples
After narrowing down to 3-5 brands in the previous step, you need to buy some products to test with yourself and your friends. This step may require some investment of time and money, but it is crucial; otherwise, you may encounter pitfalls later.
4. Contact Franchises and Compare Policies
Based on your preliminary research and testing, narrow it down to about 2 brands for on-site visits and discussions about franchising policies.
Key considerations for franchising policies include minimum order quantities, monthly sales requirements, deposits, settlement models, defect rates, and merchant support.
5. Bonus Points
We believe the following factors may add points during the selection process:
1. Products with a fast iteration and optimization cycle;
2. Products specifically for distribution channels;
3. Companies that provide support policies for agents.
We hope you can avoid pitfalls and achieve success in choosing e-cigarette franchising.
In addition to the increasing popularity of e-cigarettes on e-commerce platforms, offline e-cigarette retail stores have also developed rapidly. According to incomplete statistics, there are now over 5,000 offline e-cigarette retail stores in cities at or above the prefecture level, doubling from 2017. Meanwhile, we have also noticed an increasing presence of e-cigarettes in micro-business channels on social media.
For teams or individuals without strong capabilities, how can they share in the e-cigarette boom? E-cigarette franchising is undoubtedly a good choice. So how do we choose e-cigarette franchising channels? Here are our thoughts.
1. Understand Your Own Advantages
E-cigarettes are very popular, but there are also many types of products, such as large box mechanical mods favored by enthusiasts, pod systems with replaceable cartridges, and disposable vapes. These three different forms of products cater to completely different audiences. To exaggerate, it is like the difference between trucks and sedans; you certainly wouldn’t see a store selling both trucks and sedans at the same time.
Therefore, you need to understand the resources or audience that prefer which type of e-cigarette.
2. Choose a Reliable Brand
Currently, there are at least hundreds of e-cigarette brands in China. What constitutes a reliable brand? We believe there are several aspects to consider:
1. Brand Endorsement: If there is a strong brand background, larger companies tend to operate more cautiously than smaller ones.
2. Product Reviews: In addition to checking e-commerce platforms, look at other platforms such as industry websites and Zhihu for genuine user reviews.
3. Brand Recognition: A well-known brand indicates strong operational capabilities; the principle that a good team produces good products is always true.
3. Purchase Samples
After narrowing down to 3-5 brands in the previous step, you need to buy some products to test with yourself and your friends. This step may require some investment of time and money, but it is crucial; otherwise, you may encounter pitfalls later.
4. Contact Franchises and Compare Policies
Based on your preliminary research and testing, narrow it down to about 2 brands for on-site visits and discussions about franchising policies.
Key considerations for franchising policies include minimum order quantities, monthly sales requirements, deposits, settlement models, defect rates, and merchant support.
5. Bonus Points
We believe the following factors may add points during the selection process:
1. Products with a fast iteration and optimization cycle;
2. Products specifically for distribution channels;
3. Companies that provide support policies for agents.
We hope you can avoid pitfalls and achieve success in choosing e-cigarette franchising.
