Reaching Vaping's Subsegments

[Bill Godshall]

Reaching vaping’s Subsegments
Advanced vaping opportunities for convenience stores
Reaching Vaping’s Subsegments | CSPnet

"According to Nielsen data and Wells Fargo analysis, e-vapor breaks down into three categories: analog, modern and advanced consumers. Analog consumers go for easier-to-use cig-alike and disposable models. These shoppers account for approximately 10% of the market and tend be longtime smokers age 40 and over. Modern consumers prefer more advanced kits and bridge systems, making up 40% of the industry. At 50% of the market, advanced consumers tend to be younger (21-35) and seek out the latest and greatest vaporizer or tank models available."

 

[Grimwald]

Interesting data, even if the categories make absolutely no sense. I really can't figure out where I would fit (and what is a "bridge system?"). Perhaps Nielsen and Wells Fargo could do a bit of research before they do their, well, research.

Everyone knows there are only 3 real categories.
Tootle Puffers
Mod-whompers
Cloud Chasers

 

[Bill Godshall]

I too was confused by the description of that middle subsegment they estimated to be 40% of vapers.
But what I find interesting is that premium vaporizers and e-liquid users were estimated to be 50% of vapers, while cigalike users now only account for 10% of vapers.

Note that Nielsen and Wells Fargo only track e-cig sales by convenience stores and other tobacco retailers, but Wells Fargo's Bonnie Herzog estimates that $2 billion of PVs with open tanks and e-liquids will be sold/consumed in the US this year compared to $1.5 billion for cigalike e-cigs (which I think is about right).

And since e-liquid costs only about 25% as much as cigalike e-cigs, the volume of bottled e-liquid sold/consumed is now about 5 times greater than the volume of e-liquid consumed via cigalikes.

 

[Lessifer]

Why do they have a picture of a "dry herb" vaporizer for the article?

 

[Bill Godshall]

Why do they have a picture of a "dry herb" vaporizer for the article?

Newspapers and magazines just buy cheap photos of products that somewhat resemble those described in their articles.

 

[Lessifer]

So BT cigalikes are losing ground in market share. Perhaps they'll start coming out with new "advanced" ego type setups. Or they'll just push harder to get the deeming passed and just eliminate the choice...

 

[DC2]

So BT cigalikes are losing ground in market share. Perhaps they'll start coming out with new "advanced" ego type setups. Or they'll just push harder to get the deeming passed and just eliminate the choice...

What they do will certainly tell us a lot.
I know what I think, but I know others who disagree.


The day Big Tobacco comes out with an refillable setup...
Is the day I'll believe that maybe the deeming regulations won't hammer us...

Or heck, they day the put something out with flavors.

 

[stevegmu]

Java Jolt, Cherry Crush, Vivid Vanilla, Pina Colada, Peach Schnapps... All flavors from BT...

 

[Lessifer]

Java Jolt, Cherry Crush, Vivid Vanilla, Pina Colada, Peach Schnapps... All flavors from BT...

You mean Blu? I think they had those flavors before they were purchased. the Altria and Reynolds cigalikes have "tobacco" and menthol.

 

[stevegmu]

You mean Blu? I think they had those flavors before they were purchased. the Altria and Reynolds cigalikes have "tobacco" and menthol.

Yes, but they didn't get rid of the flavors, so BT does have cigalikes with flavors...

 

[DC2]

Yes, but they didn't get rid of the flavors, so BT does have cigalikes with flavors...

But Blu keeps on getting sold to someone else.
Now I believe they are owned by Imperial Tobacco based in the UK?

Not sure what ever happened to that deal.

If I remember correctly Lorillard was sold to Reynolds.
And Reynolds sold off Blu to Imperial tobacco as part of the deal.

 

[stevegmu]

But Blu keeps on getting sold to someone else.
Now I believe they are owned by Imperial Tobacco based in the UK?

No idea. They do have a clearo and eGo set up, but only in the UK, though...

 

[DC2]

No idea. They do have a clearo and eGo set up, but only in the UK, though...

Exactly.

 

[stevegmu]

Exactly.

I think the biggest problem for them will be liability issues and returns. Look at the amount of posts on a daily basis from those with trouble using re-fillable devices. A disposable either works or it doesn't. One blows up, and there are deep pockets to go after also...

 

[Lessifer]

I think the biggest problem for them will be liability issues and returns. Look at the amount of posts on a daily basis from those with trouble using re-fillable devices. A disposable either works or it doesn't. One blows up, and there are deep pockets to go after also...

I'm pretty sure cigalikes can blow up to, if you use the wrong charger, keep them in a hot car, etc. and I'm sure they get complaints about DOA prefilled cartos as well.

It will be very telling if reynolds starts selling e-liquid, I just don't see that happening, at least not until after the market is decimated.

 

[DC2]

I think the biggest problem for them will be liability issues and returns. Look at the amount of posts on a daily basis from those with trouble using re-fillable devices. A disposable either works or it doesn't. One blows up, and there are deep pockets to go after also...

I know a lot of people worry about flavors, taxes, and online sales.
I think too many are not concerned with the continued availability of open systems.

Open systems allow for many, if not most of the potential "nanny" issues.
And they make taxation quite a bit more complex.

Eliminating open systems will accomplish almost everything that "they" want.
No open systems and the free-roaming nicotine market could dry up and blow away.

 

[stevegmu]

I know a lot of people worry about flavors, taxes, and online sales.
I think too many are not concerned with the continued availability of open systems.

Open systems allow for many, if not most of the potential "nanny" issues.
And they make taxation quite a bit more complex.

Eliminating open systems will accomplish almost everything that "they" want.
No open systems and the free-roaming nicotine market could dry up and blow away.

Could be, but I think it is too late to go after open systems. They are too prevalent. The states are where the trouble will ensue, ala Arkansas...

 

[nicnik]

I know a lot of people worry about flavors, taxes, and online sales.
I think too many are not concerned with the continued availability of open systems.

Open systems allow for many, if not most of the potential "nanny" issues.
And they make taxation quite a bit more complex.

Eliminating open systems will accomplish almost everything that "they" want.
No open systems and the free-roaming nicotine market could dry up and blow away.

All the more reason the new data is good news. It makes it a tougher sell to ban open systems.

 

[stevegmu]

I see open systems as no different than stuff your own. I can still go to the local tobacco store and buy cheap rolling tobacco, or buy online. That market has done far more damage to BT than e-cigarettes, and they haven't been able to prevent it or have it heavily taxed...

 

[stevegmu]

I'm pretty sure cigalikes can blow up to, if you use the wrong charger, keep them in a hot car, etc. and I'm sure they get complaints about DOA prefilled cartos as well.

It will be very telling if reynolds starts selling e-liquid, I just don't see that happening, at least not until after the market is decimated.

This is where proprietary systems come into play...
Dud cartos happen, but it never slowed down BLU. Someone buys a tank system and they keep going back to the gas station because they can't get it to not flood, or leak or taste burned, gas stations will no longer carry them. There was a thread here the other day where a poster kept going back to the B&M and having them replace coils because he couldn't get his clearo to work at 60 watts...