Vape also fights price war

How competitive is vape right now? How to describe it? It can be said that vape used to be as profitable as it was before, and now it is as fierce as it is now. The competition of vape has a great relationship with its characteristics of huge profits. Huge profits have created involution, and involution is prone to price wars. Obviously, the vape industry is now undergoing brutal In the price war, they are fighting for financial strength, and those with insufficient strength will eventually launch the vape market.

The so-called cruel price war is the subsidy war. It is not cruel just to cut the price and make less profit. The price war of vape has risen to the subsidy war. In the past, a set of vape sets with a market price of more than 200 yuan, how much does it cost now? Maybe you can’t believe it, but now many of them have been sold for tens of dollars, and the selling price is far lower than the cost price. That is, the more brands sell, the more they lose. This is something that brands with low strength can afford. After all, China is a country with a large population. If we want to win the subsidy war, or let the subsidy war finally bring positive significance, it is absolutely not enough to have hundreds of millions of funds.

Usually a brand of vape pods sells for 30 yuan, but now a vape plus a pod can be sold for less than 30 yuan. The kits of the bombs all cost more than 30 yuan, plus taxes, transportation, storefronts, and labor costs. A set of vapes will lose at least 50 yuan. If one million sets are sold, the loss will be at least 50 million yuan.

Vape is no longer something small businesses can enjoy. More vape manufacturers have become OEM companies and successful vape supply chain integrators, so that brands can launch their own vape products more conveniently. Also, brands Fang can also have more energy to promote their products, and take market grabbing as their main direction of attack without worrying about the production of their own products. This is the main reason why vape so-called replacement is so fast.

Compared with a suit of more than 200 yuan, a suit of less than 30 yuan is more attractive to buy. After all, the cost is very low. Even customers from other brands before will be attracted, not just customers who are sensitive to prices, so the subsidy war It's a war for customers.

The thinking of the brands participating in the subsidy war is: as long as there is a customer base, they are not afraid that they will not be able to make money in the future. Just like the Internet companies in the past, they may not be profitable at the beginning, but when the customer base reaches a certain level After the amount, it will bring them huge wealth in an endless stream.

In fact, the price war does not only happen at the source of the brand, but also offline merchants. After all, whichever is cheaper, consumers are more inclined to buy there, which means that distributors We not only have to compete with other brands, but also need to compete among the same brands.