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How Are Vape Shops Across China Operating in 2018?

The past two years have not been easy for long-time smokers. As smoking restrictions have become stricter, no-smoking signs appear more and more frequently, and complaints about secondhand smoke are everywhere. Because people around them do not have to sm
How are vape shops across China operating in 2018? In the past two years, veteran smokers have had a tough time as smoking bans have become increasingly strict. Signs saying "No Smoking" are appearing more frequently, and the phrase "Don't let us inhale your secondhand smoke" is heard everywhere.

Since people around them can no longer smell the irritating smoke, many view e-cigarettes as a transitional alternative for quitting smoking. However, there is still no consensus on whether e-cigarettes can truly help quit smoking or if they are harmful to health. Currently, there are no clear regulatory policies for e-cigarettes in China. Although the scale of the e-cigarette industry is still small compared to the vast market capacity of traditional tobacco, the growth potential of the e-cigarette industry cannot be ignored.

What is the current situation of physical e-cigarette stores? How do industry practitioners view the development prospects of e-cigarettes?

Qiangqiang conducted research in the nearby Shijiazhuang market, hoping to provide a reference for other regions' e-cigarette markets. Below are five representative stores, presenting the fresh market situation to satisfy curiosity.

Overall, the e-cigarette stores encountered have been open since around 2015, with not much foot traffic. Most stores are located in bustling areas with high foot traffic, and although they are not large, they have a certain style in their decor.

1. Watt Vapor Club
  E-cigarette specialty store
This was the first e-cigarette store Qiangqiang visited for investigation.

The owner is very friendly, and notably, the owner is a couple of handsome men and beautiful women. The store's decor is relatively simple, and the owner shared a lot of knowledge about e-cigarettes with us. The owner was originally a heavy smoker who turned to e-cigarettes to quit smoking and later fell in love with them, now exclusively using e-cigarettes.

Consumers mostly come looking for suitable products to help them quit smoking, focusing on flavor and experience, thus the store offers a variety of brands. Currently, due to the trend of "small vapes" subtly replacing large clouds, the owner primarily promotes small vapes with air switches, featuring brands like TVT and NTC, which are affordable, lightweight, and convenient. The variety of e-liquids is vast, with numerous flavors available at different price points.

2. Yang Vape Electronic Vapor Club (Wanda Store and Lehui City Store) E-cigarette specialty store
The Wanda store has a very stylish decor, indicating that the owner put a lot of effort into it. The store displays authorization certificates for several e-cigarette brands, such as Kangertech, Moya, and Hot Fire, along with a RELX advertisement, which not only increases consumer trust in the brands but also highlights the store's operational strength.

During the interview with the owner, a customer was changing pods in the store. When asked about their smoking habits, the customer stated that they smoke both traditional cigarettes and e-cigarettes, asserting that e-cigarettes cannot replace traditional cigarettes. Compared to traditional cigarettes, e-cigarettes are less portable, have weaker throat hits, lower temperatures, and unstable control, especially the social aspect of traditional cigarettes that e-cigarettes cannot replicate.
  E-cigarette specialty store
The store is not large, open, and has a simple decor with high foot traffic.

Regarding product quality, the owner believes that as a fast-moving consumer product, quality is paramount, and they will strictly control it. They hold an optimistic view of the future market for e-cigarettes in Shijiazhuang, believing that the current circle of e-cigarette users will drive better market development.

The store has promotional activities in line with the mall's overall events, as well as membership card recharge activities, such as recharging 1000 yuan to receive 198 yuan. The owner also has innovative ideas, planning to expand e-cigarette sales channels to bars and collaborate with them for cross-industry alliances.

3. LEE VAPE Electronic Cigarettes E-cigarette specialty store
The store is well-located, but compared to nearby trendy snack shops, its decor is not prominent, yet it has high foot traffic. The store mainly features large cloud e-cigarettes that require e-liquid refills, with only one model of NTC small vape.

4. Ovan Electronic Cigarettes (Jianhua Store) E-cigarette specialty store
The Ovan franchise store primarily sells Ovan products, with certain benefits in purchasing and after-sales service, while other brands mainly include Iget. The store has formed a fixed consumer base, with machines priced between 300-500 yuan and e-liquids around 100 yuan selling well. Older customers pursue health, while younger customers seek fun.

When asked about their perception of the e-cigarette market this year, the owner provided feedback that overall, the e-cigarette market is on a downward trend this year. Meanwhile, the number of people using "small vapes" (a colloquial term for heated tobacco products, often disposable and compact) is increasing, but the reason for not stocking the currently popular small vapes is that they believe large cloud vapes offer more flavor variety and superiority over small vapes.

5. Engine Electronic Cigarette Studio
  E-cigarette specialty store
The store's sign is not very prominent, but as a studio, its area and location are decent. The owner previously had many years of smoking experience and, after feeling noticeably unwell from smoking, tried e-cigarettes to quit smoking, and has now been using e-cigarettes for about three years.

During their experience with e-cigarettes, the owner actively recommends them to friends who smoke. When asked about the future prospects of e-cigarettes, the owner expressed a wait-and-see attitude. They explained that while health is a pursuit for smokers, there is still no clear conclusion on whether e-cigarettes are truly healthier, and only when e-cigarettes can prove to be healthier than traditional cigarettes will they see significant development. Additionally, they called for the government to establish clear e-cigarette policies to allow operators to sell with peace of mind.

During Qiangqiang's visit to the city, it was found that many e-cigarette stores had already closed, indicating that the development of the e-cigarette market in Shijiazhuang is not very optimistic. E-cigarette brands are small, diverse, and the development levels vary greatly, with no strong dominant brands established in the industry. Moreover, among e-liquid brands, those with good reputations are mostly foreign brands.

However, the e-cigarette industry is not without good news. With innovations in e-cigarette technology, new small vape products are increasingly approaching the fundamental purpose of e-cigarettes—"smoking alternatives." Their high portability and excellent craving relief effects have attracted more consumers to small vape products, which are currently popular, with major brands including TVT, NTC, and RELX. Large cloud brands are more chaotic and are more suitable for young people.

Overall, among e-cigarette consumers, those seeking smoking alternatives are in the majority. The main consumption price is around 500 yuan per set, and they pay more attention to the taste of e-cigarettes rather than the brand. Consumer loyalty is relatively high; once they find an e-cigarette that suits their taste, they generally do not switch.

Most e-cigarette operators hold a relatively positive attitude towards the development of e-cigarettes and hope that the government will quickly introduce corresponding policies for clear management of e-cigarettes. It should also be noted that the development of e-cigarettes in Shijiazhuang is significantly different from that in cities like Beijing, Shenzhen, and Guangzhou, where the consumption atmosphere, level, and environment are incomparable. Therefore, e-cigarette operators in Shijiazhuang hope that the e-cigarette community can support each other, and that e-cigarette consumers can also drive each other, bringing e-cigarettes into the view of more people.
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HNB Editorial Team

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