According to Chen, the impact of the ban on online sales on the e-cigarette industry has both advantages and disadvantages. The disadvantage lies in the need to stop online business, while the advantage lies in more confidence in offline channels.
He analyzed "bullet finance", "compared with online, unlimited online stores can be opened, offline business super, store resources are limited, everyone's attention to offline, will inevitably lead to the increase of offline operating costs, the competition will be more fierce."However, from another perspective, the ability to operate, control, and operate an offline channel is completely different from that of an online channel.Initially, many online brands didn't really have the strength to expand their offline channels, and some may have pulled out.".
From a competitive perspective, there may be fewer glass bongs from china brands, but there will be less competition.Relatively speaking, now do offline, in fact, for some powerful enterprises, is not a bad thing.
Changes in sales channels have led to changes in business models.As e-tobacco enterprises continue to seize the offline market, more and more funds are invested and the business model is becoming more and more serious.
Platinum launched the "thousand stores" program, with a total of 300 million yuan to support offline stores.
Yuechao has launched a smart system to protect minors with flowers in the sun and plans to cover stores across the country within seven months, with an estimated investment of 100 million yuan.
No industry has moved away from a business model as light to heavy as the lookah glass recycler industry.
Chen min believes that compared with online, offline channel investment must be larger, otherwise there will be few opportunities for online investment, so the direction of heavy assets is inevitable.In this model, different enterprises can also adopt different strategies, such as more emphasis on relatively light involvement, or more emphasis on direct operation.
Fang told bullet finance that before the announcement, there had been a trend toward asset-heavy development for large and medium-sized brands.The trend has accelerated significantly since the announcement.But for a long time to come, the whole industry will still be asset-light, contract construction is still the first choice of most enterprises, and product distribution will still be based on joining the cooperation, with a small number of brand stores..
E-cigarette companies continue to lose money, but expanding the market won't be easy.
According to fang, the current problems of offline channel expansion mainly focus on three aspects: dealers' lack of understanding of national policies, users' misunderstanding of e-cigarettes, and vicious competition from competitors.
Ken also believes that the problem with offline channel expansion lies in the perception of ordinary consumers, most of whom do not understand e-cigarettes and will be affected by some bad news.
Competition is on the rise.Previously, offline was only a supplement to the distribution channel, but now offline channel has become "unique".According to media reports, there is chaos in offline channels, and the cost of admission and offline passengers continues to rise.
Zhang admitted that the offline channels are more complex and the cost of goods in stores is higher, raising the bar for the whole industry.That makes it harder for agents to sell, and harder for agents who don't have the wherewithal to do so."In addition, the focus line of the whole industry also intensifies the competition to the shopping mall, the brand must spend more energy and cost for this.
All kinds of big brands spend money to seize the offline market, which is not only a blow to the small brands, but also has a great impact on the whole industry.If it blindly relies on low prices and loss-making concessions to attract companies, it will eventually lead to cheaper and lower-quality product development."Ken was worried about that, too.
In the past, "low threshold, high margin" was the typical label for the lookah glass for sale industry, but now, under strict supervision, e-cigarettes are no longer a game for small players.
The opportunity to
There are also great opportunities for change."Fang summed up the development of the e-cigarette industry in 2019 in this way.
People outside heard the sound of e-cigarettes, and some practitioners lost confidence under strict supervision.Fang hui does not agree with the failure of singing.The e-cigarette industry still has a chance.
E-cigarettes are an ideal alternative to cigarettes.According to a study led by the ministry of health, e-cigarettes are 95 percent less harmful than traditional tobacco.In addition to the above conclusions, there is a large amount of literature and experiments to prove the safety of e-cigarettes.Platinum has a nicotine-salt laboratory in New Jersey that is studying the potential effects of e-cigarettes on the human body, Mr. Fong said.
Zhang gengbin believes that the rise of e-cigarettes in China is only about five years, the experience is still shallow, the market is not mature, the development of setbacks is inevitable.
In the short term, the Internet ban has caused huge industry turmoil, and it is normal for the outside world and the industry as a whole to panic.But to extend the time to 5-10 years, this consumer trend is unstoppable, the strict regulation of the industry back to a low-key orderly state, and there are greater development opportunities in the future.Zhang said.
Add: Guangdong . China