By Vape Flavor on Mar 12, 2018 11:28:46 AM
Are you an entrepreneur looking to start a business in the booming vape industry? If the answer is yes then you need to keep reading because today we share some critical advice that could have a big influence in your future success.
Sure we all know that the vaping sector is on the rise. The popularity of vaping is growing month on month, but while there is much opportunity there are also many potential hurdles.
Attempting to enter into the vaping industry without fully arming yourself with the right industry knowledge and understandings could become a very costly exercise.
Fortunately for you, we have been an active player in the vaping sector since 2004 and have helped many budding entrepreneurs walk the path you are considering taking.
So follow along as we shed some light on this lucrative but highly volatile industry and provide you with some experience backed knowledge and advice to make your entry into the vape market a much smoother journey.
The State Of The Vape Industry 2018
The first thing anyone looking to start a vaping business needs to understand is the nature of the vaping landscape. The vaping sector is a young and volatile beast and there are many interest groups including the big tobacco sector and government agencies who pose a serious potential threat to your business.
If you're not already aware, health authorities across the globe, including the FDA in the USA have classified vapes as tobacco related products.
"As of August 8, 2016, the Food & Drug Administration (FDA) will consider vapor products to be “tobacco products” under the Family Smoking Prevention and Tobacco Control Act (the Tobacco Control Act)."
These agencies are currently imposing a heavy regulatory framework on the supply, marketing, advertising and sale of all vaping related products and there is currently a battle looming over the manufacture and sale of certain vape juice flavors, some of which are deemed to be too attractive and enticing to the experimenting youth market.
In fact the FDA is currently calling for public comment on how best to regulate the booming e-juice market and this could lead to the restriction or even banning of several popular vape juice flavors.
Be warned, this trend is not something that is the exclusive domain of the USA vape market. Government regulators across the globe are following suite with their American counterparts and while there are differences between vaping regulations in different countries and regions many markets look to the US when it comes to formulating vaping policy.
Vape Business Advice - Do Your Homework and Know The Rules
As mentioned above the rules of engagement in the vaping sector are different in different countries and regions across the globe so our advice is to keep a close eye on your area's drug and health regulations to ensure your vaping business complies with local legislation.
Regardless of which area of the vaping sector you are looking to conquer, whether that be hardware manufacture, e-juice manufacture, wholesale distribution or direct to consumer vape sales, there are several regulations which penetrate all aspects of your business.
For those of you looking to enter the biggest vaping market, the USA, we strongly recommended visiting the FDA website and following them on your favorite social media channel to keep informed.
Similarly for those of you looking to enter European markets it is essential to follow the EU TDP (Tobacco Product Derivatives) and stay informed about existing and potential new regulations.
Is The Vaping Industry Doomed To Fail?
If all of this sounds a little intimidating let us provide a little balance to what appears to be a lopsided conversation and allay some of your fears.
While there is obviously a great deal of turmoil in the vaping sector today, the reality is vaping as an industry is here to stay. What we are currently experiencing is typical of any new industry and or product group that comes under the scrutiny of government health officials and regulators.
Sure there are some uncertainties and insecurities within the vaping industry right now but as the sector begins to mature the rules of engagement will become much clearer.
In a strong counter argument to the strong lobbying of the FDA and TDP by big tobacco there is a growing body of evidence to demonstrate that vaping is a much healthier form of nicotine intake. In fact, in recent times the UK Department of Health along with many medical practitioners have officially endorsed vaping as a powerful and effective smoking harm minimization strategy.
Add to this the fact that many people are becoming acutely ware of the health risks associated with smoking tobacco products and turning to the use of vaping products as a smoking alternative and its clearly evident that there is a growing community of vape industry representatives and end users ready to fight for their right to vape.
Vaping is not going to disappear any time soon. As a potential vape business entrepreneur the goal is to arm yourself with the regulatory knowledge to plan and structure your business in a way that aligns with the rule of engagement in your market place.
Equipped with the right knowledge and understandings it is possible to carve out a successful career as a vaping entrepreneur, but be warned as more and more players enter the marketplace competition is ramping up. What was once almost a guaranteed pathway to business success is fast becoming a cut throat business.
With that said, as the vaping industry continues to evolve there are a host of different types of business opportunities to explore. Rather than outline them all here take a look at our hot list of 11 hot vape business opportunities.
Identify Your Customers
If you're still reading this article it's clear you're seriously looking to carve your niche in this lucrative emerging industry. Our second piece of advice is to know your customers.
Having a product or service to sell is only the beginning. The real challenge is developing a market audience for your business.
Market competition is fierce so If you want to have a successful vape business it goes without saying that you need to target your product, service and marketing to meet the needs, wants and desires of your ideal customer. But do you really know who your customers are?
While you may believe you have an understanding of your customers there are several different niche markets within the vaping sector from quitting smokers to competitive cloud chasers and a host of sub niche audiences in between whose choice of products and or services are determined by many factors including things like taste, style and budget.
We highly recommend taking the time to research and develop ideal customer personas. Whether you're vape store, online shop or vape industry service provider to be successful you need to decide exactly who your target audience is and develop a marketing strategy that speaks directly to their tastes,needs, wants, desires and pains.
To assist you with this task we've put together the vape entrepreneurs persona guide. In this downloadable document we walk you through the process of identifying your ideal customers and provide some useful insights into the types of promotions you will need to reach them.
Know Your Competitors
Regardless of which sector in the vaping industry you choose there is going to be significant competition. While in most industries this is considered a negative in the vaping sector things operate a little differently. To a large extent the vaping industry is driven by a community so it pays to join forums and use reach out strategies to develop strategic partnerships with your competitors.
Reciprocation of product marketing and sharing of resources with regard to product and service recommendations only serves to benefit the whole community and in this industry it's not uncommon to gain customer referrals from your marketing competitors.
Advice For Wholesale Vape Distributors and Vape Shop Retailers
There are many factors that can impact your business success from product quality to supply chain management, marketing support and after sales service.
With most vapes being manufactured in China there are several middle men acting as manufacturers and or suppliers however the truth is they don't really have any recourse to solve your problems with faulty goods and a host of other potential issues.
To help you determine if potential suppliers are a good fit for your vaping venture we've put together the wholesale vape buyer's checklist. In this checklist we cover over 50 essential questions you need to ask any potential supplier to ensure you're making the right supply chain decisions.
Vape Trade Shows and Exhibitions
So now we've armed you with the background understandings and tools to conduct your vape business research the question is how do you reach out to potential vape manufacturers, wholesalers, distributors and industry partners?
While you could spend countless hours visiting vaping websites and scheduling appointments a much easier approach is to attend a local vaping trade show.
There are several trade shows held in major cities across the globe each year and they provide the perfect environment to check out the latest product and/or service offerings of e-cigarette manufacturers, vape distributors and industry experts.
Trade shows are also the perfect place to discover the latest industry product trends and get updated on the state of government regulations.
With that said, we understand that its simply not possible for everyone to get to trade shows but never fear. At Vaptio we are committed to helping vape entrepreneurs succeed and are always happy to answer your questions.
If you're serious about starting your journey in the vaping industry why not schedule an appointment with one of our vape industry experts. You can do that here. Simply click - Vape Business Appointment.
Alternatively you can post your general questions in the comments below and we'll be happy to answer them for you.
To your vape business success!