Germany: Channel opportunities in September

Many companies smell a good opportunity in Germany, but the essence of this lies in grasping the opportunity of the channel.

Asked 100 factories out to sea, there may be 60 factories say Germany is good (according to this year's survey of this number, 70% of Chinese enterprises are interested in the German market).

Meanwhile, recently also found that leading performance exceeded expectations, electronic cigarette industry is casting high growth track. For example, win-win technology recently released data, its e-cigarette plate core subsidiary Scor 2023 first-half revenue of 1.433 billion (up 1,477% year-on-year), operating profit of 485 million; Si Moore half-year revenue mostly from China and overseas, and overseas enterprise end and retail end are showing greater growth, especially the European one-time scale shipments, driven by the European market revenue is also relatively substantial. Also included, electronic cigarette companies Jinlong electromechanical Q1 net profit year-on-year growth of 150%; small song shares 2023 half-yearly results of net profit year-on-year growth of 618.21%-746.46% ...... for the industry to go overseas to lay a confident Foundation.

01

Where are the German opportunities in September?

The biggest opportunity in Europe in September will be consumer.

From the point of view of e-cigarette activities, September-October Europe has opened the e-cigarette exhibition time one after another. For example, Germany on September 14, 2023 Dortmund, Germany Tobacco & e-cigarette exhibition is about to start, known as one of the largest, large booths are also many, the current booths have been sold out.

Germany is arguably one of the biggest markets in Europe, and a large number of Chinese companies have continued to pour into Germany this year to participate in the market. For example, ELF BAR, LOSTMARY, Geekvape, KIWI, SKE, ELUX, VAPORESSO, and other well-known VAPORESSO companies. "keylink">e-cigarette brands participated. For example, in May this year, Germany, a Stuttgart e-cigarette exhibition, more than 140 e-cigarette manufacturers were present in large numbers, exclaimed another wave of Chinese companies figure!

(Chinese companies participate in the German market is very popular)

Don't underestimate the second half of the market! The second half of 2021 and 2022 will see disposable take off in Europe and the United States because of summer consumption.

Germany is also currently an important area of intensive cultivation for disposable brands. For example, the headline brand ELF BAR, Germany has become its second largest market in the world.

(Germany, the market can not be missed)

Information, the German e-cigarette activities are also relatively much. For example, from Frankfurt to Stuttgart, Dortmund, Hamburg have e-cigarette international exhibitions, indicating that inside the local industrial system, e-cigarette exhibitions become one of the important activities.

Overall, Germany is one of the largest e-cigarette markets in Europe, and the market will continue to grow in 2023. Despite the relatively strict legislation and regulation of e-cigarettes in Germany, the market has a high potential for consumer acceptance of e-cigarettes.

Currently, there are more than 2.4 million e-cigarette users in Germany, but there are 18.2 million smokers, so there is still a lot of space and a lot of opportunities.

02

September's German channel opportunity has come!

In order to open up the German channel and help Chinese factory brands enter the German market, CVIC team is about to embark on a journey to visit Germany, and will soon provide more first-line channel real research information for Chinese enterprises.

How to think about the German channel opportunity coming in September?

Look at a few points:

One, this season is the German market consumption season.

Germany in the second half of the summer is opening the way to open, the local very popular music festivals, or Oktoberfest has become one of the popularity of e-cigarettes to promote the popularity of one of the important scenes. And in the cultural field, music festivals can also be said to be more important symbol of Germany. The frenzied atmosphere is bloodthirsty and a proposition for consumption. These festivals, which have various consumer and social attributes in addition to enjoying music, delicious beer and traditional German cuisine, attract millions to tens of millions of visitors every year. Various music festivals, film festivals and other events where young people gather are also exactly where e-cigarette users are.

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(Germany's music festivals, too shocking, consumption, culture, socializing all in one of the madness)

Two, the channel clouds of major e-cigarettes activities, attracting major Distributors gathered, find the right opportunity point can be more channel business cognizance.

This year found that some of the German chain channel business, but also continue to open stores offline, such as this Riccardo channel business has been more than 60 e-cigarettes stores in Germany, continue to open stores this year.

Germany's largest e-cigarette trade wholesaler INTRADE, is also working with ELFBAR.

YueQue International is also in Germany a large number of and local channel cooperation, so far a year has been established with more than 2,000 retailers. These include tobacconists, kiosks, gas stations, supermarkets and online e-cigarette stores.

Three, most of the retail system stores in Germany sell e-cigarettes.

For example, convenience stores, supermarkets, e-cigarette vape oil stores, kiosks, hookah stores and tobacco stores sell e-cigarettes.

(German store format)

Four, one-off opportunities.

Compared to other European countries, Germany's one-time penetration rate is very fast. Market data show that more than 5 million disposable e-cigarettes are currently sold in Germany every month, with the most famous brand being China's ELF bar. and according to the German e-cigarette trade association (VdeH), e-cigarettes, which will generate more than 300 million euros in sales in the Federal Republic in 2022, are now often sold on supermarkets and convenience stores at prices between 7 and 10 euros. And sales of disposable e-cigarettes in Germany this year are up 40% on last year, with 8 million units expected to be sold each month in the future.

At the same time, users of e-cigarettes appeal mostly to the style of advanced, simple design, not too fond of fancy design forms. And the local e-cigarettes important attraction point is curiosity and rebellion, followed by the influence of social, taste reasons.

Fifth, the demand for changing cartridges is rising.

Because the disposable caused some problems, including the impact of the tobacco oil tax, the demand for switching is on the rise. The German market, in particular, may be the first to respond.

The popularity of disposable products is declining in Germany this year, and the market is shifting to refills, centered on a July 2022 tax hike on e-cigarettes in Germany. Starting July 1, 2022, e-cigarette oils will be subject to an additional tobacco tax of €0.16 per milliliter.

But be concerned about one thing, Germany is the EU national system of e-cigarettes rules are more stringent, its e-cigarettes have strict restrictions on the composition and content of e-cigarettes, need to comply with the relevant regulations of the European Union. At the same time also opened the e-cigarette tobacco oil tax collection, but also increased year by year, the tax label is very important (even exhibitors are required to all products must be labeled or reported to customs tax label). This year Germany also launched a ban on flavored HNB, but did not include e-cigarettes.

Germany as Europe's largest market after the United Kingdom, its more than 80 million people (basically Europe's largest country in terms of population), highly developed national economy and consumer power, its demand for e-cigarettes as a replacement for cigarettes and consumer trends, including a one-time influx of madness provide opportunities for the opening of this market.

Find the point of opportunity, focus on Europe, focus on Germany.

Currently in Europe and the United States, is ushering in the second half of the consumer scene, docking channel the best opportunity has also appeared, you want to seize not?