Is it still profitable to open a LAMI franchise store in 2021? First, vaping products began booming online in 2018, and the industry developed rapidly. After online sales were banned in November 2019, the market shifted to offline retail, and physical sto
Is opening a LAMI franchise store still profitable in 2021? First, electronic cigarettes have been shining online since 2018, and the industry has been booming. After the online sales ban in November 2019, physical stores began to flourish. By the end of 2020, there were over 20,000 electronic cigarette physical stores nationwide (in just about a year), which is astonishing.
Secondly, the common understanding in the electronic cigarette industry is:
1. The industry is a blue ocean market; China has a large base of smokers, and the current proportion of electronic cigarette users is low, leaving significant room for future development;
2. Product profits are relatively high;
3. Opening costs are low;
4. The business model is sustainable, with high repurchase rates for products.
There is no doubt that electronic cigarettes are one of the most promising industries for the future. Of course, the impact of the electronic cigarette industry on traditional tobacco and the regulatory risks regarding the draft policy opinions collected in mid-March 2021 must also be considered.
1. According to incomplete statistics, the number of people working in the electronic cigarette industry has reached over 3 million. From the perspective of rule of law and industry transformation, policies are likely to be gradually reformed and included in legal regulation.
2. The Ministry of Industry and Information Technology's news can be interpreted as the government's regulation of the electronic cigarette industry, which is inevitable. The introduction of national standards is actually beneficial for the sustainable development of the industry, especially for leading brands.
Having discussed the future prospects of the industry, let’s talk about LAMI. Although it is a new brand in the electronic cigarette industry, LAMI's company strength and core technology rank among the top in electronic cigarette brands. LAMI has the full support of the Wuyesheng Group, with its Xinhui Intelligent Manufacturing providing supply chain manufacturing support, and the Shennong Tobacco Science and Technology, which has won the National Science and Technology Progress Award, providing flavor development and harm reduction technology support, creating unique flavors and characteristics for LAMI's e-liquids.
Since the launch of LAMI products, they have made significant differentiation in e-liquid flavors through three major series: fruit transformation, beverage transformation, and herbal transformation, enhancing user experience and forming a sense of dependency through unique flavors.
Relying on the largest domestic plant monomer library supported by the Wuyesheng Group, and injecting exclusive Shennong extracts into the e-liquids, LAMI has achieved a high threshold for e-liquid quality. Even as LAMI's market share increases, the difficulty of counterfeiting and imitation will be very high, providing consumers with a safer consumption guarantee.
For franchisees, whether opening a LAMI franchise store or a store of another brand, the main goal is to make money. LAMI's product retail prices can be 50% to 100% higher than the market average, and the repurchase rate is excellent, indicating that LAMI is rapidly attracting mid-to-high-end consumers who are more quality-conscious, less price-sensitive, and have stronger repurchase capabilities. This market segment was previously a blank space until LAMI emerged.
