Joining the Vape Business? These Issues Need Attention

2018 was a booming year for electronic 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 electronic cigarettes on e-commerce platforms, offline electronic cigarette stores have also developed rapidly. According to incomplete statistics, there are now over 5,000 offline electronic cigarette stores in cities at or above the prefecture level, doubling from 2017. At the same time, we are also seeing more and more electronic cigarettes appearing in our social media channels.

For teams or individuals without strength, how can they share in the booming electronic cigarette market? Joining an electronic cigarette franchise is undoubtedly a good choice. So how do we choose an electronic cigarette franchise channel? Let me share my thoughts.

1. Understand Your Own Advantages

Electronic cigarettes are very popular, but there are also many types of products, such as large box mechanical devices favored by enthusiasts, small devices with replaceable pods, and disposable small devices. These three different forms of products target completely different audiences. To exaggerate a bit, it’s like the difference between trucks and sedans; you certainly wouldn’t see a store selling both trucks and sedans.

Therefore, you need to understand the resource channels or target audience, and which type of electronic cigarette they prefer.

2. Choose a Reliable Brand

Currently, there are at least hundreds of electronic cigarette brands in China. What constitutes a reliable brand? I believe there are several aspects to consider.

1. Brand Endorsement: If there is a strong brand background, larger companies tend to operate more steadily than smaller ones.

2. Product Reviews: In addition to looking at e-commerce platforms, also check other platforms, such as industry websites and Zhihu, for real user reviews.

3. Brand Recognition: A high brand recognition indicates strong brand management capabilities. The principle that a good team produces good products is always true.

3. Purchase Sample Products

Through the previous step, you can initially narrow down to 3-5 brands. Next, you need to buy some products to test with yourself and your friends. This step may require some money and time, but it is crucial; otherwise, you may encounter pitfalls later.

4. Contact Franchises and Compare Policies

Based on your preliminary research and testing, ultimately select about 2 brands for on-site visits and discuss franchise policies.

Franchise policies mainly consider aspects such as minimum order quantity, monthly sales requirements, deposits, settlement models, defect rates, and merchant support.

5. Additional Considerations

We believe the following factors may add value during the selection process:

1. A relatively fast product iteration and optimization cycle;

2. Products specifically for distribution channels;

3. The company has support policies for agents.

I hope you avoid pitfalls and achieve success when choosing an electronic cigarette franchise.