Industry news

E-cigarette price war signals

    The trajectory of the e-cigarette was a little fuzzy, and someone pressed the fast-forward button oil rigs, adding some variables.

  Break the rules in high-priced industries.

  Rhinoceros LINX is at the forefront of the e-cigarette industry's price war.On May 25, the company sold a new product for just 99 yuan for a regular package, while similar products on the market range in price from 239 yuan, 299 yuan and 599 yuan.This could be a sign of a price war in the e-cigarette industry.

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  Why should rhinos take the lead in cutting prices when big and small brands are earning low costs and high gross margins from e-cigarettes?At present, not in China."1. Monthly sales of e-cigarette brand exceeded 100 million yuan, accounting for only 10% of the overall market share.In mature markets like the u.s., the e-cigarette brand Juul has more than 70% market share.China's e-cigarette industry needs a leader glass pipes, and the first e-commerce brands are competing for users and market share, all hoping to seize this window of opportunity.

  So far, other brands have not danced like the price of rhinos, and are more likely to sit on the sidelines.The huge price survey didn't cause a stir, but that doesn't mean the e-cigarette industry can resist a price war.All industries with high gross margins are tantamount to sending a hero's post to snoop.

  Mr Lei promised that xiaomi would never make more than 5 per cent on all its products, with the vast majority coming from Internet services.The core of retail is good product quality and high efficiency. Only in this way can we achieve the same benefits as e-commerce in the traditional retail field.

  Is this logic feasible in the e-cigarette industry?Mi 21 employee zhong yufei created the e-cigarette brand thicke at the press conference, and appeared "thicke is crazy, you can change to the bomb e-cigarette only 1 yuan!"Are e-cigarettes really only $1?In fact cool water pipes, this is just the brand's marketing strategy, which requires the purchase of a box of 4 cigarette bombs plus a total of 141 yuan to buy cigarettes, the capacity of the cigarette bomb is only 1 ml of the market capacity of half.

  The same marketing convention is making waves, with the recent release of a low-cost bomb exchange product that costs just 99 yuan and has a capacity of 0.7ml.They break the average market price and earn enough eyeballs and gimmicks, but in fact the ratio of performance to price is not high.That's one reason why other brands in the industry are waiting -- and -- looking at attitudes -- rather than following suit.

  Will capital still be invested in e-cigarettes?Persistence: e-cigarettes are a mild, addictive consumer product favored by the capital side.Fashion: fashion products in online celebrity social networks are easily imitated by young people who show off their personalities and huge market potential;Big profits: if you divide e-cigarettes into cigarette cases and eggs, the gross profit of the former is up to 80%, while the gross profit of the latter is also up to 20% to 30%, and the average gross profit is more than 50%.Even if competition intensifies and drops to 20 per cent, the profits after walking are considerable.

  E-cigarettes have a "xiaomi super cost-effective strategy," just waiting for the trigger, with the influx of money, the industry began to enter the deep water.The threshold is low, the cost is low, the gross profit is high, the product homogeneity is serious, the market potential is huge, in this background, brew a knife to see the blood price war is only a matter of time.