According to the data of prospective industry research institute, before the “online sales ban”, online channels accounted for more than 80% of China’s e-cigarette sales, including online self-supporting stores and e-commerce platforms of various e-cigarette brands. In contrast, the construction of offline channels is still in its infancy, including convenience stores and small businesses, supermarkets, exclusive stores and other sales channels, accounting for only 19.4%.
But now, the advantage of exclusive store sales is that it can improve the brand exposure and establish the brand image, which also makes the offline channel of e-cigarette become the place for players to compete.
Take Yueke as an example. At the beginning of this year, its two brand flagship stores have been set up in the core business districts of Beijing and Shanghai. At that time, in response to the national call for “stable employment”, relx Yueke also launched a series of solid measures to “stabilize employment and protect entrepreneurship” during the epidemic period.
It is reported that by May this year, the number of relx Yueke stores has grown rapidly, with a total of more than 2500. From January to May this year, more than 1000 relx Yueke stores have opened. It is understood that it plans to invest 600 million yuan in the next three years to develop 10000 exclusive stores.
Since November last year, Yishuang has also started to operate 20 offline stores in several cities nationwide. Gong Zijia said that through nearly a year’s efforts, all stores of Yishuang have made profits. Yishuang also summed up a set of offline operation methodology, which can help franchisees to avoid the risk of subsequent store opening.
Liu Dongyuan, founder of vitavp, a aerosol cigarette brand, revealed that it started to operate offline stores in March 2019. At present, more than 200 offline stores have been opened, and 90% of them are profitable. He said that since the end of the Shenzhen e-cigarette Exhibition on August 22, 50 new stores have been opened in a month at a steady growth rate of opening one exclusive store every 12 hours.
With the above mainstream e-cigarette brands crazy opening up offline brand stores, offline channel competition is also increasingly fierce. E-cigarette brands often sell goods free of charge first, and there is no need to pay for joining. After the products are put on the shelves, there are still subsidies for opening stores.
On September 18, Yishuang announced the plan of “one hundred cities and one thousand stores”, with a maximum replenishment of 36000 goods and 20000 opening gift bags. A week ago, only it released a new subsidy policy for exclusive stores: the highest subsidy for regional first stores is about 320000. It includes decoration subsidies, rent subsidies, product subsidies and opening gift packs.
The subsidy policy of each brand makes the agents and shopkeepers start to open stores on a large scale.
Tang Chaoying, the owner of the e-cigarette store, told the “pioneering frontier” that he had opened his first XI Wu offline store since November last year, which is located in the brand-new green green city of Wuhan.
At first, he was worried, because based on years of retail experience, he had made a good psychological expectation that he would lose half a year. The result did not expect, only a month time, the store’s sales reached 560000. With sales rising slowly, Tang Chaoying’s second Xiwu store opened rapidly in Wuhan in December.
Just as he was preparing to open his shop, the epidemic arrived first. However, during the epidemic period, the performance of his store was not bad due to its fixed customer base and careful operation in the fan group.
Tang Chaoying made an account for the “pioneering front line”. The cost of each store is less than 100000 yuan. The monthly rent is about 8000 yuan. It takes about 50000 yuan to pay three bills, 20000 yuan for decoration and 20000 yuan for stock preparation, and 10000 yuan for deposit. And his first old store can sell more than 30000 e-cigarettes a month.
“It won’t lose.” With the epidemic under control, he opened eight more stores.
Recently, Tang Chaoying has reached cooperation with weita, laimi and pomelo respectively, preparing to become an e-cigarette collection store brand in the future, and to replicate it nationwide in the form of franchise.
Tang Chaoying is not the only one who is interested in setting up e-cigarette offline stores.
Gong Zijia introduced that most store owners of Yishuang are planning to continue to open the second and third Yishuang franchised stores.
At the same time, in recent years, Yishuang has held three earth promotion activities in succession. Among them, in the channel meeting activities in Zhengzhou, there are more than 1000 visitors. In this activity, more than 500 samples of new products were sold, and more than 40 people who were interested in doing stores were attracted, including 3 or 4 provincial agents, and more than 1 million money had been paid.
Brands seem to understand that one person can go fast, but a group of people can go further.