Challenges and Breakthroughs for Chinese Manufacturers’ European Vaping Orders in H2: Key Pain Point
The second half of the market, and new challenges.
Topping up customers, the unchanging theme, but after the first half of a variety of busy, the second half of the year whether to have a new strategy and play?
Europe, more than 40 countries, the world's third most populous region, 748 million people, occupying 10% of the world, is currently a highly developed economy and has the best electronic cigarette consumption prospects for regional markets.
(Map of Europe, for reference only)
Analysis of a few points:
1
Europe is a mature market.
Mature policies, stable products, robust market and considerable consumption.
From some regional countries in Europe can be found, the government more support for e-cigarettes to replace cigarettes, e-cigarettes commercialization is very high. Large to specialty stores, refined to e-cigarette retail, convenience stores, chain stores, cross-industry channels, sales channel visibility is wide.
Some European countries in particular, such as the United Kingdom, Germany, etc., the disposable penetration rate is very high. Enterprises engaged in the distribution of e-cigarette channels are also very active. The local wholesale market, are visible in the electronic cigarette industry wholesale and retail, and even incremental people enthusiastically into the field.
2
Special market, regional differentiation.
Once met a Kirchner manufacturer said, "The European market is big enough to figure out how to do well in this region."
Big cake, anyone who wants to eat it, and big capacity.
According to Statista's forecast, the European e-cigarette market segment reached $10.26 billion in revenue in 2023, and is expected to grow at a compound annual growth rate of more than 10% (CAGR of 2023-2027).TPD registration information published in March 2016-2023, the cumulative number of rows is about 60,000 items. A large number of e-cigarette companies can be found entering the European e-cigarette market. The overall market SKU competition, the trend in the number of vendors, and the trend in the number of brands is staggering. Various data also show that the European e-cigarette market is growing rapidly. Euromonitor statistics show that last year, the global atomized e-cigarettes increased by 17.8%, but the size of the Western European growth rate of up to 27.0%, and the Eastern European countries are also in a rapid start.
But, looking at Western Europe, the United Kingdom, France, or Germany in Central Europe, or Eastern Europe, Poland, Czech Republic, Russia, or Southern Europe, Italy, Spain, the e-cigarette market to different degrees. These regions have different peculiarities, whether it is consumers, or the degree of category paving.
3
Can be a large center market.
Global e-cigarette manufacturing in China, but consumption from Europe and the United States to open.
European market for one is very close to the United States. In recent years, because of the tightening of U.S. policy, many manufacturers and brands are focusing on Europe, becoming another big market outside the United States. Second, Europe has the largest Indian and Pakistani businessmen system, electronic cigarette commercialization business in the retail system has a good bearing, linking the whole world. Third, Europe carries the center of e-cigarette channel distribution, Europe is the center of consumption, but also the distribution of channels and cross-border springboard.
At the same time, Europe has always believed that e-cigarettes in helping the country to implement a smoke-free future has an important role significance, therefore, most countries in Europe on e-cigarettes with an open mind rather than banning.
Data also shows that Europe is an important part of the global e-cigarette market, accounting for 20% of the global market share, is the main driver. Here whether it is consumption, or channel support, or corporate brand long-term solid penetration, is a can do big center market.
4
is a challenge market, from where to do? How to do it?
Changes in the environment, advances in technology, and increased competition make us all anxious. This anxiety, in turn, has intensified competition, leading to volumes. But the so-called competition, at the end of the day, is a battle of perceptions, which boils down to the challenge of reflecting the new phase of the European market.
Challenges come from several major "difficulties".
One, the market is large, the development cost is high.
Second, the selection of the region is too crowded, must have its own strategy.
Third, the practice of fuzzy, how to penetrate the channel and market retail?
Four, the promotion is difficult, wide spread network can not even focus.
Fifth, looking for orders way to roll, go out with enthusiasm, return stifled.
For example, the current manufacturers do a single channel. Most of them use to participate in the annual international #p# pagination title #e#electronic cigarette exhibition, customer acquisition is relatively single, of course, the cost is also heavy.
There are also companies that mainly hold the original network way to get customers. I have interviewed some factories, they said that the current European market, mainly through the network channel. They said, "We generally look for customers on Instagram and Facebook, and we mainly search for customers through software. The European market is now mainly attacking the United Kingdom, looking for the netroots over there to promote our company's products, advertising, looking for dealers".
Rarely go abroad, or rely on foreign traders to find orders mode is still prevalent. The bias leveling channel "one-to-one" access has not been established.
In addition, the promotion of difficult to penetrate the regional market, travel personnel, transportation, accommodation, abroad cycle, efficiency costs, how easy it is?
(Hit Europe to find channel orders)
Always, the author has emphasized that Europe is a strategy, more than just one order opportunity! Its market trend for replacement of cigarettes is clear, the market is booming. The second half of the big show in Europe, have to first think about a problem, choose the right region to cut in, is the strategy to bear the security, but also the long-term cultivation of the potential for sound market decision-making, decided to even the next year the longer-term layout of the enterprise out to sea.
Here, which country do you choose to cut into?
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