“It’s very simple, online sales are not allowed, offline stores have a lot to do!” After the two ministries issued a notice to terminate the online sales of e-cigarettes in China, SnowPlus’ Guangdong Province representative Wu Dongping said relaxedly. In his opinion, the online sales ban only has changed the rules of the game in China’s e-cigarette industry and has little impact on the huge e-cigarette market. What it brings is not a cold winter, but a once-in-a-lifetime opportunity.
Therefore, when 90% of the players in the industry lost their investment funds and withdrew the production line, the cutting-edge e-cigarette brand SnowPlus changed its play and quickly assembled funds to dive into the market, taking the opportunity to race and divide up the vacated market share. It is understood that after a year of cyber bans, the epidemic was hit again this year, but it did not affect the acceleration of SnowPlus’s development.
SnowPlus is a brand with multi-departmental operations, wide distribution of talents, and branches in many countries and regions around the world. Its electronic cigarette products have entered nearly 100,000 offline physical stores in nearly 200 cities across the country, and have hundreds of franchise stores in more than 100 cities. While peers in the industry are still watching the China Internet ban policy, SnowPlus has set its sights on overseas markets. As early as 2019, it disclosed its overseas plans. In less than a year, its products have entered North America, Southeast Asia, Europe, It is sold in more than 30 countries in the Middle East and North Africa. In addition, when other e-cigarette brands were struggling to seek financing opportunities, SnowPlus easily won SnowPlus and international investments including Zhen Fund, and the investment amount exceeded US$40 million.
Some industry professionals analyzed that before the e-cigarette online sales ban in November 2019, nearly 100 e-cigarette brands were active in China. However, in just one year, the China e-cigarette industry experienced a brutal reshuffle, and most players After the epidemic this year, the e-cigarette industry entered the second half of the showdown. There are only less than 10 top e-cigarette brands left, sharing the China e-cigarette market with billions of dollars. SnowPlus is one of the best and regarded as a competitor to only two or three other brands.
Under the high pressure line of “prohibition of selling to minors,” SnowPlus added “zero franchise fee, subsidy upgrade” to rush to offline franchise stores, and gave a full score to the e-cigarette market after the online sales ban. After the epidemic this year, it grew against the trend and became one of the leaders of the industry.
When the epidemic hits 2020, this is the hardest year for physical stores. However, SnowPlus, as the leading e-cigarette brand, has not stopped opening stores. It has adopted the form of franchise stores and continuously upgraded the subsidy policy for franchise stores to accelerate store openings and seize the offline market.
According to feedback from SnowPlus Guangdong agent Wu Dongping, after inspecting many e-cigarette brands, it was found that SnowPlus is the most powerful in store subsidies. Regardless of whether franchise stores are opened in shopping malls or on the roadside, they can enjoy subsidies of up to 92,000 yuan. Among them, franchised stores in first- and second-tier cities can enjoy a decoration subsidy of up to 80,000 yuan when they open, as well as display cabinets worth 12,000 and more than 4,000 yuan in material support. He calculated an account for us. On average, a franchise store only needs 30,000-50,000 investment, combined with a simple push model to quickly open the market, it can smoothly pay back within 3-5 months, and the gross profit rate exceeds 40%.
After the epidemic this year, SnowPlus Guangdong agent Wu Dongping set a miracle of expansion from 0 to 30 SnowPlus stores within two months. At present, he has exceeded 60 stores, and it took only four months. Among them, 90% of the stores have already made a profit. There are more than 1 billion smokers in the world, and China accounts for nearly one-third of the cigarette consumer market, and e-cigarettes, a healthier way, will be favored by more people, even if there are only 1 of 10 smokers smoking electronic cigarettes, it’s still a huge market of billions.