Regional First-Store Subsidies Up to About RMB 320,000: VTV Launches New Franchise Policy

According to reports from Blue Hole New Consumption on October 9, the domestic e-cigarette brand vitavp has officially launched its 4.0 version of the exclusive store image and a new franchise subsidy policy after the National Day holiday.

Vitavp revealed that after the Shenzhen e-cigarette exhibition ended on August 22, it began a steady growth rate of opening one exclusive store every 12 hours, opening 50 new stores within a month. Currently, vitavp has over 200 exclusive stores in the country.

The new exclusive store image launched by vitavp

Founded in 2015, vitavp began developing pod products independently in early 2017, and its first pod product was officially launched in 2018. In terms of financing, vitavp completed a financing round of tens of millions at the end of 2018, with the investment firm being Pusi Capital, founded by Wang Sicong.

In August, vitavp released its first new pod product of the year, the 2.0 NEW BIE. This product removes some features that are not as important for beginners, such as vibration and waterproofing, compared to the standard version of vitavp's pod product, with a price of 49.9 yuan/set.

While reducing costs without compromising user experience, the 2.0 NEW BIE retains the ultra-long battery life of the standard version, with a 650mAh battery and a 1000mA charging current, fully charged in 40 minutes. The body material features a B205 ceramic sandblasted aluminum alloy anodizing process.

In terms of brand differentiation in the domestic e-cigarette market, vitavp's brand leans towards fashion and personalization, characterized by a strong design sense and differentiation.

This new store opening policy released by vitavp is an upgrade from the original policy in response to the unique challenges of 2020, providing comprehensive support for three types of new stores, with varying levels of support for different types of stores. The store opening process can be completed in as little as 15 days from application to official opening.

Rent subsidies are the most attractive aspect of this policy, although the subsidy is in the form of goods, vitavp's subsidy duration lasts up to one year, continuously alleviating the operational pressure on merchants.

Below is a detailed interpretation of the store opening policy.

1. First Exclusive Store in the Region

The first exclusive store in a region (the first store in a prefecture-level city) is of great significance to the brand. As e-cigarettes become increasingly recognized by consumers, becoming familiar and deepening brand impressions is crucial. The first e-cigarette a user tries is likely to be the brand that leaves the deepest impression, and securing more regional locations can provide strong backing for brand promotion.

Therefore, vitavp offers the most substantial subsidies for the first store in the region, with actual subsidies reaching up to 316,900 yuan, including renovation subsidies, rent subsidies, product subsidies, and opening gift packages.

Renovation subsidies are based on the actual amount of unified procurement of exhibition equipment, with a maximum of 50,000 yuan. Rent subsidies are based on the actual rent amount, with a maximum of 20,000 yuan/month for up to 12 months. Additionally, the opening month includes an extra subsidy of 100 sets of 2.0 MAX pod kits and an equivalent of 10,000 yuan in vitavp peripheral gift packages, which include customized basketballs, laser bags, skateboards, and other decorative items for the store.

2. Regular Exclusive Stores

Regular exclusive stores have the same subsidy projects as the first exclusive store in the region, but with varying levels of support, with actual subsidies reaching up to 196,000 yuan.

Renovation subsidies are based on the actual amount of unified procurement of exhibition equipment, with a maximum of 50,000 yuan; rent subsidies are based on the actual amount for 6 months, with a maximum of 20,000 yuan/month. The opening month also includes an extra subsidy of 100 sets of 2.0 MAX pod kits and an equivalent of 5,000 yuan in vitavp peripheral gift packages.

3. Collection Stores - Photosynthesis Stores

Photosynthesis stores are those that have a vitavp display area of more than 2 square meters and are decorated according to vitavp's standards, authorized as a store within a store. They can enjoy product subsidies, material subsidies, and opening gift packages, with actual subsidies reaching up to 15,000 yuan.

Product subsidies include goods worth an equivalent retail value of 10,000 yuan, material subsidies include items such as MPC display racks, A4 display boards, disposable display racks, trial smoking tips, shopping bags, illuminated light boxes, promotional posters, and other items worth 2,000 yuan, and the opening gift package includes items worth 3,000 yuan in vitavp peripheral products.

The end of the National Day holiday marks the approach of the end of this extraordinary year. Due to the impact of the pandemic this year, the e-cigarette industry has shown a trend where the strong become stronger, with well-established leading brands competing fiercely for market share. A new round of subsidy wars has begun, and it remains to be seen how the market landscape will shape up by the end of the year.