For vaping brands, shifting from franchising to direct-operated stores is the key to breaking throug

• For vaping brands, shifting from franchising to direct-operated stores is the key to breaking through
• The franchising model has led to a diversity of sales channels, lack of standardization, and difficulty in controlling product sales.

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For vaping brands, shifting from franchising to direct-operated stores is the key to breaking through

The following is merely the author's personal opinion and is for reference only. Any inaccuracies are welcome to be pointed out.

The vaping industry is currently in a relatively chaotic state, facing external national policy restrictions and internal competition from countless vaping brands. There are also health concerns for consumers.

A potentially enormous industry, one that is constantly under controversy, faces both opportunities and challenges.

Currently, vaping brands in the domestic market may be in the early stages of the industry, facing various issues. The main sales channel still relies on franchising, which can minimize operational and marketing costs. However, there are significant drawbacks.

The franchising model has led to a diversity of sales channels, lack of standardization, and difficulty in controlling product sales.

It is difficult to achieve price uniformity. The drawbacks are evident; market prices are chaotic, and franchisees face competitive pressure on pricing, leading to a vicious cycle of undercutting prices, which is detrimental to the brand itself.

It creates confusion for consumers. The varying prices in the market can confuse consumers, leading them to wonder if there are cheaper channels available or if they can negotiate prices with sales personnel, thus affecting the brand's image.

Both distributors and franchisees are very difficult to manage. Distributors and franchisees can represent multiple brands while selling a single product, recommending the brand with the highest profit margin to customers. Moreover, these distributors and franchisees can easily sell products across regions; in the internet age, there are no absolute regional marketing methods, as long as there are customers willing to buy, products can be shipped anywhere.

Since it is a franchising model, it is challenging to control sales channels. This gives counterfeiters an opportunity to replicate products and sell them through low-priced online channels, which is a dilemma some brands are currently facing. The direct-operated store model can effectively address these issues, clearly indicating that all products sold through online channels are counterfeit.

The direct-operated store model is more conducive to promoting brand image and gaining consumer trust. It gives consumers the impression that the brand is more rigorous and standardized, and that the products are safer and more reliable, especially at this stage when many consumers are unsure if the products they purchase are genuine or compliant.

From a long-term development perspective, only direct-operated stores can allow companies to maintain complete control, whether in data analysis, production capacity structure, etc.

In terms of brand promotion, the direct-operated store model is unprecedented in the industry, a unique format compared to other brands, providing consumers with a strong psychological suggestion that this brand is very reliable, much like how SF Express stands out from other courier companies. Even if the price is relatively higher, many consumers still choose it.