Company dynamics

Whose cake is the glass pipes

  

  Last September, the author wrote "5 million can be a brand, glass pipes industry threshold? 》。 At that time, only a handful of enterprises received financing in the market. Only one year has passed. Now, the glass pipes industry has made a great leap forward in financing, which has increased costs in all fields. Enterprises that have taken VC money need to lay down their lives and run faster. Some new brands have to reduce the production cycle in order to appear as soon as possible. After proofing, the product directly enters the batch production process. As soon as the quantity is large, it is very easy to have quality problems. For example, there has been a serious oil spill in the 100 million fog. Only its lookah glass even had two batches of products without production date and shelf life. In addition, those who do not have hardware background or who enter the net have gone through many detours. The cigarette holder used at the beginning of a net red brand with high sales volume was made of electroplated stainless steel, which is easy to cause quality problems after high temperature heating.

glass pipes.jpg

  In addition to the oil spill and other product problems that cannot be 100% solved in the industry, the channel and marketing costs have risen all the way. "It's very simple. Yueke went to talk to McVeil. How many production lines do I have to package? If these production lines cannot be used by others, McVeil will have insufficient production capacity. McVeil is even more picky in picking up orders and prices will rise. " Introduction by Li Ming. In addition, online reflects the high cost of search traffic. Eu learned exclusively that Yueke basically bought 80% of the traffic of Jingdong lookah water pipe category and provided 45% of the sales share in addition to the 15 million yuan of advertising fee paid to Jingdong every year. A Yueke glass pipes set costs 299 yuan (1 cigarette rod and 2 cigarettes), and the actual ex-factory price is about 55-60 yuan. JD.com needs to split 135 yuan. If other brands want to compete with Yueke, this is the rigid cost. It is not a good thing for most enterprises if it lasts too long.

  Under the line, the ability to compete for agents and positions has become the norm. As glass pipes is full of experience and relies heavily on people's recommendations, various companies have made purchases in bars, nightclubs, KTV, convenience stores and supermarkets, and have heavily hired senior executives with channel experience in the field of fast-food products. For example, Yueke Long Jiang previously worked as a liquor distributor, the head of Cherry glass pipes previously worked as Gatobao, and Liu Chaohua, vice president of offline sales of Shegal glass pipes, worked as vice president of sales at Wrigley Candy. Teams with 3C backgrounds, such as Zhu Xiaomu's FLOW and Luo Yonghao's Xiao Ye, rely on the channels accumulated in the mobile phone industry before, and come to the top in sales in a short period of six months.

  In addition, the marketing expenses are not cheap. Small wild flowers invited Chen Guanxi to speak for them, while Shegar invited Arqie to bring the goods. For the music festival sponsored by glass pipes, the cost of publicity, construction, samples and other expenses for an activity exceeded 1 million yuan. However, the disharmonious stories of 618 bills and verbal battles in the lookah glass for sale industry have become the laughing stock of the Internet community. "During 618, many brands unanimously chose to announce JD.com's shipments because JD.com's anti-order system was not as strict as Taobao. Some brands brushed the list on the first day and reacted too much the next day, so they quickly brushed the number of fans as well. " Introduction by Li Ming.

  Facing the Red Sea market of glass pipes, the reshuffle period may be half a year away. Upstream factories are too strong to deliver goods until payment is made. Downstream in order to rob channels, take the lead in distributing goods before considering collection. Li Ming's company has been hearing the news of the collapse of two small glass pipes brands. Some powerful brands are beginning to consider building their own factories. A brand party, who could not be named, also told the truth in an interview with Yiou: "Although we are a dust-free workshop, we don't care whether it is really dust-free or not as long as we ensure that the final products pass the quarantine inspection."

  The benefits of self-built factories can flexibly adjust the production rhythm, while brands pay more attention to cash flow. Previously, Yueke and Zoellick had to pay a deposit of at least 30% for a one-off cigarette. After the factory is built, the packaging has a 6-month accounting period, the shell material has a 2-3-month accounting period, and the motor and plastic parts have a more than 1-month accounting period. Ordinary companies can save tens of millions to 100 million yuan in cash flow, while head companies can save  even more if they like. However, the difficulty in building a factory lies in establishing a research and development team and finding an experienced production team. Yueke started research and development of the previous 2 Alpha series products at least one year in advance. Most of the business standard practitioners believe that the national standard is certainly a good thing. Standards can regulate the environment of industries and evolutionary industries. If national standards are in place, consumers will naturally dispel their doubts.

  However, the recent outflow of the draft "National Standards of the People's Republic of China water pipes for sale" has caught many practitioners' breath. The nicotine content of each cigarette bomb is limited to 2%, while the nicotine content of most cigarettes is currently about 3%-5%. The nicotine content is reduced, which will affect the user's feeling of smoking. The content of benzene and acetaldehyde in tobacco oil is also strictly controlled. At the same time, the "Draft" allows only 119 kinds of additives, most of which are water well pipes additives and a small amount of essence extract. This means that fancy tastes on the market will be banned. Although the draft is still at the game stage, it is expected to be published in October with a two-year implementation period. But for the whole industry, the two-year window is long enough. In addition, the tax rate problem is also a straw on the brand. Countries have basically implemented high tax rates on water well pipes. At this stage, the income tax is levied at 13% for electronic products, but if the tax is levied according to water well pipes products, the glass pipes tax rate will be further increased. Industry insiders joke that "the profit from white powder will soon drop to the profit from cabbage."