Under the Current Situation, Choosing the Right Brand Is Key When Joining an E-cigarette Specialty S

2020 was a critical year for the e-cigarette industry. With national policy restrictions, e-cigarette brands were completely banned from online sales and promotions, which undoubtedly cut off the lifeline for many lesser-known e-cigarette brands.

The closure of online sales has also ushered in a surge in offline development, providing opportunities for many entrepreneurs looking to enter the e-cigarette industry. The barriers to entry for e-cigarette franchises are low, with minimal investment and considerable profit returns, leading to a crazy growth of offline stores in 2020.

In the current situation, the e-cigarette industry faces both risks and opportunities. For those looking to join a specialty store, how to choose a brand and location is crucial.

Choosing the right brand is essential. As the e-cigarette craze gradually fades, people are paying more attention to the safety and health issues of e-cigarette products. For many small e-cigarette brands, it is undoubtedly difficult to find a way out and gain consumer recognition. Therefore, choosing to franchise a small brand carries too much risk and could lead to significant losses.

Currently, brands with relatively high market recognition include RELX, Ploom, and YOOZ, as referenced in our article on the market share rankings of e-cigarette brands in the first quarter of 2020. Among them, RELX holds over 60% of the market share in China, and as of now, RELX has opened over 3,000 specialty stores nationwide, planning to open 10,000 stores within three years. Analyzing the RELX brand, it has high market recognition, but competition among the same brand will inevitably become fierce in the future. In summary, RELX is a relatively good choice, but joining quickly while also maintaining good customer relationships is essential; otherwise, the pressure from competition within the same brand will be significant. Of course, one can also choose other top-ranking brands, which will at least reduce the competitive pressure within the same brand.

Another aspect is the choice of location. In many first-tier cities, the number of brand franchise stores has exceeded the limit, leading to intense competition among the same brands. For example, there are already over 50 RELX specialty stores in Changsha, not to mention smaller authorized stores. Therefore, in cities with high competition among the same brands, it may not be the best choice. In fact, there are many second and third-tier cities where the number of e-cigarette specialty stores is very low, presenting a great opportunity for entry.