Company dynamics

Who started selling glass pipes offline first?

  

  Three groups started selling glass pipes for the first time. For a batch of large cigarette products that have been sold before, these people usually have their own specialty shops and "steam halls" represented by various themes. They are the first people to come into contact with glass pipes. One group comes from the media. This group of people have a keen perception of the wind direction. They discovered the potential of lookah glass pipes in advance. For example, Yooz, the founder of rhinoceros, came from the media. There are also a number of agents who make fast-selling products, such as white wine, beverages, mobile phones and other products.

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  Before the ban on online sales was imposed on November 1, the domestic glass pipes brand seized the gaps in policies and regulations and accelerated the siege of horse racing. Due to lack of control, all kinds of funds and people swarmed in, and offline channels mingled.

  Nightclubs, Internet cafes, convenience stores and digital stores are the terminal channels of Qiu Yiwu, founder and chief executive officer of Whale Smoke, "with good scenes and good sales ability". These channels can easily contact smokers and experience the scene. The space is relatively closed, so mobile marketing is better.

  In the second half of 2018, glass pipes began to appear in the main locations of these stores starting from nightclubs. Most of these products are disposable cigarettes with prices ranging from above 10 yuan to several tens of dollars. This is the focus of lookah glass for sale early delivery, and this is the intention of the education market.

  The owners of these stores intuitively feel the explosive power of this emerging industry: the glass pipes brand tends to shop for free first. Shopkeepers don't have to pay. Products go on shelves first and they have to pay the next time they buy. As the number of glass pipes brands increases, the competition for offline channels is becoming more and more intense. Free shops, subsidies for goods and fees for entering shops have become standard distribution.

  An investor who pays close attention to glass pipes told "Burning Finance" that currently mainstream disposable glass pipes cost 150 to 250 yuan per month in convenience stores, 300 to 400 yuan per month in large enterprises, and thousands to tens of thousands of dollars in nightclubs due to small geographical differences.

  One of the founders of the glass pipes brand, which collaborates with bees, told "Burning Finance" that it would take at least 500,000 yuan to get sku, admission, booth, deposit, etc. to put glass pipes on the bee-friendly shelf. In addition, when supplying, it is necessary to ensure that the convenience bees have a 50% gross profit and a two-month payback period.

  Competition between brands and channels has raised the price of channels and attracted more players to enter the arena.

  In the second half of 2019, the glass pipes brand will compete for the layout of the specialty stores. The prevailing mode in the industry is: individuals apply to join, responsible for renting shops, renovating, operating, granting subsidies for water pipes for sale grass licenses and purchasing subsidies. This is equivalent to the brand supporting individuals to join the store.

  The store has lowered the threshold for opening glass pipes, and even inexperienced part-time workers have the opportunity to participate in offline sales of glass pipes. However, in the competition for channels, economists also follow suit.

  Glass pipes brand experts, who are famous for their high subsidies and market spending, have also started to promote specialty stores this year. According to the introduction of a franchise enterprise in Xuejia, the company has set up exclusive shops with subsidies of less than 15 square meters, subsidies of 15,000 yuan and subsidies of more than 30,000 yuan for more than 15 square meters. 60% discount for purchase, with a minimum purchase price of 30,000 yuan. At the same time, Xuejia will subsidize another 5,000 yuan according to the purchase price.

  In the eyes of many people in the industry, it is more risky to open a shop without considering the subsidy cost. However, the small bosses who joined didn't seem to care. Before they fell down, they had to drive faster. Even if they fell down in the future, it would be a big event to mark the company doing other things. "said the franchisee.

  Qiu Yiwu calculated an account. Taking the current layout of the glass pipes specialty store as an example, the monthly rent of a store is 8,000 yuan, the salary of employees is 5,000 yuan, and the total fixed cost is about 15,000 yuan. Within 50% of gross profit margin, a store sells at least 30,000 yuan per month, which can protect funds. Of course, this is not the decoration and marketing costs.