Convenience Store News has a story today about the increased traction in retail being achieved by electronic cigarettes. The shopper data is particularly interesting. While I know some newsagents playing in the category here it is yet ton take off in a mass way. I suspect that is because it does not have major brand awareness yet.
Check out Whirlpool thread on e-cigarettes. Part 4 is up to 103rd page. It is a culture all of its own. If one wanted to get into this it appears quite complex to get the right “Vape”.
I have tried them and it is nothing like having a smoke ,it is like holding a nikko between your fingers compared to the real deal . The local Tabaco shop sells them and he told me they do not sell , you get a few sales when people try them for the first time and no repeat customers . Maybe when the next price increase come would be a good time to start trying to sell them .
They are available very cheaply through the likes of DealExtreme from China and Hong Kong.
I’m not yet convinced that e-cigarettes are a long term trend.
They’re likely targeted as a replacement for cigarettes. That market is significantly narrowing with time as fewer people have taken up smoking .
They don’t replicate the chemical effects of smoking and thus some of their appeal.
They don’t replicate the addictive effects of smoking and thus the long term habitual consumption that previously sustained the category.
The social acceptance of smoking is at an all time low. Its frowned upon by a large portion of society and that stigma is not going away. This stigma will naturally have a significant carry-over to e-cigarettes.
While the growth in the category is significant this is off a very low base and does not indicate one way or another if the product has longevity in the market.
With all the price increases, decrease in people who smoke and all the new regulations that are being implemented (like the ones that require cigarettes to be kept out of sight), does it still make sense for newsagents to sell cigarettes?
Jonathan I think if sales are below $3,000 a week you have to seriously question the economic value to the business.
If customers buy the right types of Electronic Cigarettes and are shown the correct way to use them then you will get a lot of repeat sales. http://www.vapourmates.com.au