Motley Fool: Trouble is Brewing in the Electronic Cigarette Sector

[pamdis]

Trouble is Brewing in the Electronic Cigarette Sector

Lorillard's operating income and margin from its e-cig segment have declined from $7 million and 12%, respectively, in the first quarter of this year to 0 during the third quarter. That's right, Lorillard made no profit from its e-cig sales in the third quarter.

They blame it on new product rollouts, retail expansion efforts, and marketing, but methinks those are just excuses.

 

[CheekyChica]

Trouble is Brewing in the Electronic Cigarette Sector



They blame it on new product rollouts, retail expansion efforts, and marketing, but methinks those are just excuses.

What they fail to tell us is that, that's how big businesses work! Especially since the e-cig market is virtually new and the tech keeps improving at a fast rate of course the profits earned will be used to expand and roll out new products...um that's called business growth! I love how they spin theses stories so they can convey a message that the e-cig market is on a decline. The message they want to get to us is that free markets and competition are bad, to fix this we need more taxes and regulation. Even though within the same article they also say that taxes and regulations will slow market growth.

 

[claudebo]

Is seems that "Big Business" is going at this in a big business way. develop a market, get loyalty from your clients, deposit money at bank.

I just don't see that kind of market with e-cigs, I smoked the same brand of analogs for 25 years. With e-cigs I'm in a constant state of experimentation, and enjoying it, and tons of people doing the same thing.

Everyone starts with 510 blu's etc. but don't stay there very long. As they learn more and blog, facepage etc they more onto other things that work better, are cheaper. They don't care that they don't look like cigs.

The long term vapor business is not going to be a modified cigs business, and I kept seeing that model being used all the time.
IMHO the vapor business will not be a business that is not easily corralled, it is volatile changes all the time and it is made up of a bunch of people that just got their get out of jail free card from the tobacco companies. Don't see them getting locked up in a brand or system any time soon.

The big exception to this is the nic liquid, vapers are dependent on the availability nic big time, but that is not a brand market.