Why are so many investment institutions optimistic about the glass dab rigs industry? I guess it may
by linbin on June 18, 2020
1. glass dab rigs has had successful cases abroad.
In July this year, JUUL, a US start-up glass dab rigs brand, was valued at US$ 15 billion. It accounts for 68% of the US glass dab rigs market, which has reached half of the 100-year valuation of Imperial Tobacco, a tobacco company, and has also made Juul the sixth-most valued startup in the US. Similarly, Fillmore International announced this year that the company's vision for the future is "smokeless", and iQOS is the product that should be introduced in response to this trend. At present, the domestic glass dab rigs industry is scattered and the head has not formed a brand.
2. glass dab rigs' consumer group is young people and is forming a trendy culture.
Smoke shop, as a fashionable product, has a beautiful design and gradually forms a trend culture. The taste is richer, healthier than traditional cigarettes, and the celebrity endorsement and participation make glass dab rigs more acceptable to young people. In the circle of senior players, the trend of playing games such as burning equipment, DIY cigarette oil and fancy puff ring is on the rise.
3. Tobacco is an addictive commodity
The nicotine or taurine or caffeine contained in glass dab rigs products is easy to make people addicted, and the profits of glass dab rigs are generally higher than those of cigarettes, which is a very good business.
In addition to investment institutions, China Tobacco Group is also building up its strength. Nearly 10 local cigarette factories owned by China National Tobacco Corp. are also continuously developing glass dab rigs. However, it is mainly in the stage of water testing and only exports to South Korea and Japan on a small scale. As the traditional cigarette market continues to make profits, China Tobacco's glass dab rigs products are still in a defensive layout.
II. Innovation Points of glass dab rigs Industry
1. R&D Innovation and Brand Innovation
With the development of the industry, lookah seahorse is no longer positioned as a product to "help stop smoking." Internationally, brands are becoming more and more differentiated and trendy. This can be seen from the VaporFi brand operated by the well-known US Glasdabrigs Group International Vapor Group, Inc (International Steam Smoke Group). The brand is positioned as a trendy glass dab rigs, emphasizing cool, fun, social intercourse, sex appeal and desire. The target group is 18-45 years old. Many foreign fashion celebrities and stars are their loyal fans.
Another example is the following domestic brands that have received financing in the past three years, which also attract consumers through research and development innovation and brand differentiation:
RELX Engraving: Provide convenient cleaning and maintenance and large-capacity smoke bombs (RELX one smoke bomb is worth 60 IQOS smoke bombs);
Gippro Dragon Dance: Provide more detailed product categories (including non-combustible heating, tobacco oil glass dab rigs, suction-type energy bars) and nicotine-free tobacco oil products;
Wisdom wins ability: integrate the whole industrial chain in business mode, mainly B2B2C mode;
Laan Shan Lan: Products Breakthrough in Larger Smoke Volume and Atomization Effect.
However, more glass dab rigs brands in China are manufacturing enterprises with weak research and development and brand capabilities, which will bring challenges to many small and medium-sized brands.
2. Channel innovation: social channels are the main channel, and the dependence on traditional cigarette channels is small;
The new tobacco business channels do not rely too much on traditional channels, but are spread through social interaction and word-of-mouth recommendation. Of the 6 glass dab rigs consumers contacted by the author, 4 tried because of the recommendation of friends. At present, the glass pipes for sale brand, which includes financing, is also developing multiple channels: circle of friends, post bar, micro-business, short video and small programs to develop users. A friend who has been engaged in the glass dab rigs industry for 3 years and has glass dab rigsODM/OEM experience said that the glass dab rigs channel is very critical. with the more detailed division of labor in the industry, there will even be professional channel providers in the future to supply convenience stores, KTV, restaurants, bars, etc.