Online channels such as online stores and e-commerce platforms for glass pipes brands account for more than 80 per cent of e-cigarette sales in China, but the construction of offline channels is still in its infancy, accounting for only 19.4 per cent of total sales, according to research data provided by the institute of future industry.
Most of the domestic e-cigarette manufacturers are mainly scientific and technological enterprises, whose business scope is mainly electronic products, and the threshold of entry is lower than "tobacco products" and "medical products".After the ban on online sales, some new brands died out quickly and more e-cigarette brands were forced to move to the front line in what could be called the "100 cigarette war".
Compared with online channels, offline channels of e-cigarettes are more diverse.First, night channels such as bars, KTV, Internet cafes, etc., followed by supermarket chains, convenience stores, there are e-cigarette enterprises set up or join the store.According to a xing, his official account is reliable, and the average daily turnover of his store tripled from nov 1 to nov 11, 2019, according to the official account of an cool water pipes store.
Although the current situation of the e-cigarette market in China is quite chaotic, there are several brands with typical business models, which are worth learning from by many e-cigarette enterprises.
From 2005 to 2010, a Chinese e-cigarette brand named Ruyan had a near monopoly on the market and was listed on the Hong Kong stock exchange.In 2013, soft yan was bought by imperial tobacco, the world's fourth-largest tobacco company, for $75 million.Over the next few years, brand awareness of most e-cigarette companies was relatively weak, and e-cigarette brand recognition and stickiness were not high.
RELXYuechi, founded in early 2018, is an independent brand that entered the e-cigarette field earlier in China and is currently the largest e-cigarette brand in China, with a market share of more than 60%.RELX is also aggressively expanding overseas into 43 countries, including Canada, the UK and New Zealand, and expects overseas revenues to rise to 50 per cent in the next two years.RELXYuechi has established the only e-cigarette laboratory in China, the largest e-cigarette monopoly factory in the world, formulated and implemented the most stringent standards for tobacco and oil enterprises in the world, and realized the integration of the whole industrial chain including r&d, production, manufacturing and quality control.
In early 2019, tongdao founder CAI yuedong launched the e-cigarette brand Yooz after cashing in 178 million yuan.Although Yooz has no experience with e-cigarettes after a few months of online sales, it began to open offline channels, opening 300 offline stores between may and October 2019.For that reason, Yooz's sales didn't have much of an impact after online sales restrictions were imposed on Nov. 1.In the two short months since, Yooz has opened more than 100 new offline stores.
Compared with the TOC e-cigarette company mentioned above, McWeill, the first oil rigs company in China, which was founded in 2009, has grown into the largest e-cigarette atomizer company in the world, with more than 1,200 electronic atomizer equipment manufacturers around the world.McWeill was the world's highest-paid maker of electronic atomization equipment in 2018, with 10. 1 percent of the total market share.McWeill was listed on the new third board as early as 2015, and its share price soared in 2018. McWeill voluntarily withdrew from the new third board in June 2019 and recently submitted a proposal for a Hong Kong listing to the Hong Kong stock exchange.
At present, e-cigarette is a highly competitive and open market, and overseas e-cigarette brands have begun to enter the Chinese market.Platinum, an American e-cigarette brand that has been in the Chinese market since 2016, has since shifted its focus to springtime changes and off-the-shelf products.In the face of fierce domestic e-cigarette competition, platinum chose to fuel the raw material of the cigarette oil, with 3% more nicotine than other families, to meet the taste needs of smokers.
At present, e-cigarette grabbing offline tobacco counter and convenience store market is still in the market development stage, as long as the local market can be open, local brands in the channel integration has a considerable ground advantage.
Finally, e-cigarette companies need to make efforts in channels, technologies, brands and maritime travel in 2020 to enhance their core competitiveness.
Add: Guangdong . China