Company dynamics

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  For the domestic market, the sales channel is shifting from online to offline, and some of the financial strength is insufficient. E-cigarette manufacturers have no offline sales resources and gradually withdraw from the market, which indicates that cool water pipes the e-cigarette industry in China has entered the reshuffle period.

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  Fang hui believes that the announcement will accelerate the industry restructuring, has relied on online sales of small brands have exited the stage, the future can survive a certain degree of large and medium-sized brand capital strength.

  "2019" is the year e-cigarettes are seen, embraced, disrupted and suppressed, like on a roller coaster.After this year's fierce competition, opportunists and underdogs are largely out. There are and will be only three types of brands that can survive: strong brands oil rigs, especially financially strong brands, brands with insight into how the industry works, and new brands that have been restructured.Zhang concluded.

  However, Chen believes that the impact of the ban on online sales on the e-cigarette industry has both advantages and disadvantages. The disadvantages are that the online business has to stop and the advantages are more confidence in offline channels.

  He analyzed bullet finance. "compared with the unlimited online stores that can be opened online, the offline business is super, the store resources are limited, everyone's attention to the offline business will inevitably lead to the increase of the offline operation cost, and 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 left.".

  From a competitive perspective, there may be fewer e-cigarette 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 bio water pipes continue to occupy 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, a total of 300 million yuan to support offline stores.

  Yuechao has launched the xiangyang flower intelligent protection system for minors, 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 e-cigarette industry.

  Chen min believes that compared with online, offline channel investment must be bigger, otherwise online investment basically has few opportunities, so the direction of heavy assets is inevitable.In this mode, different enterprises can also adopt different strategies, such as more emphasis on relatively light involvement, or more emphasis on direct operation.

  Fang hui told bullet financial, in the announcement before the release of large and medium-sized brands to the direction of heavy asset development trend, notice released, the trend accelerated significantly.But for a long time to come, the industry will still be asset-light, contract construction is still the first choice for most companies, and product distribution is still based on participation in the partnership, the number of brand stores is small..

  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 the problem with the expansion of offline channels is the perception of ordinary consumers, many of whom do not understand e-cigarettes and will be affected by some bad news.

  Competition is on the rise.Previously, offline was just a supplement to the sales channel, but now the glass bongs offline channel has become "the only one".According to media reports, the offline channels are in chaos, and the costs of entry fees and offline passengers continue 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 entire industry.This makes it harder for agents to sell, and harder for those without the financial resources to do so."In addition, the focus line of the whole industry also intensifies the competition to the mall, the brand must spend more energy and cost.

  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 cheap and low-quality product development."Ken was worried about that too.

  "Low threshold, high margin" used to be the typical label for the e-cigarette industry, but now, under strict supervision, e-cigarettes are no longer a game for small players.