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When Groupon's Groupon group purchase was introduced to China a decade ago, it quickly sparked a battle among thousands of companies in what history has dubbed the "toundandswar."At the end of the battle to provide trade subsidies to users glass bongs, one important point was Meituan's wang xing, who announced an account with a balance of $60 million at a July 2011 event.Mr Wang knows that the cash-burning model of subsidies alone is unsustainable, and that what is left is to maintain the strength of the last company.As we all know, Meituan joined hands to be the final winner.
When a perfect business model emerges, everyone must flock to it, and only entrepreneurs who truly understand the industry can see the risks behind it.For example, when Juul, an American benchmarking company led glass bong, encounters messages in its domestic market that induce minors to smoke, online channels are more careful about advertising and verifying compliance.Or, when online sales are always a legal hazard, start building offline channels as quickly as possible, rather than running away from reality and making money every day.
To develop off-line market, a lot of brands often give dealer with very low price will undertake price war, occupy crucial.Brand gambling, in fact, is the old users repeatedly buy cigarettes, which is the company's highest profit link.
This radical approach is not reliable.The faster the offline expansion, the higher the cost the company pays, and the faster the blind pursuit, the cash flow problem the company will have.At the same time, in the absence of enough control to expand the sales system, there will be dealers "string" chaos, disrupting the normal sales of products.On platforms that search for e-cigarette brands, such as yanyu, the same brands sell at different prices, making it difficult to tell the true from the false.
"After the online smoking ban was announced last year, the distributor of an e-cigarette brand was in chaos," guo said.The epidemic has exacerbated the confusion, with media reporting that the brand is selling e-cigarettes for 39 yuan, a one-time price, and that some agents are now selling them for 6 yuan each to pay off debts and sell products.
As an early e-cigarette startup, the company entered the industry in 2018 and has been relatively stable in the face of both the online sales ban and the outbreak.Yue chao started its offline layout more than a year ago, and now consumers are covered by direct and connected channels in most cities across the country.It is understood that in February, yue engraved smoke bomb orders can still reach tens of millions of levels.
Low barriers to entry make the glass water bong industry once in a state of perfect competition.Any industry to become bigger and stronger, without exception, is a relatively strong oligopoly industry."The e-cigarette industry is showing a relatively clear trend," deng quanyong, a senior tobacco industry expert at yunnan university, told a conference on a new type of tobacco."Some of the small players have gone through a natural cull, and as the remaining concentration increases, the larger players are likely to develop further, leading to an oligopoly in line with the international industry.".
Since launching in 2014, sectors such as group buying, fresh ecommerce, taxi hailing and bike-sharing have seen fierce competition from the wind to just one or two survivors.This reincarnation is inevitably confirmed again in the e-cigarette industry.
History has shown time and again that entrepreneurs still have to Revere the business world's perfect model.