Industry news

Is glass pipes Worth Gambling

     

      In my opinion, glass pipes, like mobile phones, will become China's pride in the future.  "Zhong Yufei, Xiaomi's former 21-year-old employee and founder of Sike glass pipes, said recently at a lookah glass pipes salon in Beijing.

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      When asked if glass pipes could still see it next spring, he said "Yes" confidently, but two conditions were needed-"evil capital and bad policies".

      When the wind blew for the first time in the industry, capital had already entered the market: since April 2018, Edro had received round A financing of 300 million yuan, and by July 2019, Xiao Ye Yangyang had received round A financing of 30 million yuan.  In the three months of this year, at least 20 glass pipes companies received more than 300,000 yuan of financing.

      According to incomplete statistics, in the first half of 2019 alone, the jet water pipes industry received a total of more than 1 billion yuan.  This industry is really busy now. there is a meaning of "eight immortals stand out from each other across the sea".  In early August, Li Nan, a former executive who had just left Mazu, said: "1,500 companies are too noisy now." Li Nan, a former executive who had just left Mazu, said he did not choose to start a business in the glass pipes industry at that time.

      Why did the domestic glass pipes industry become so "noisy" within one year?  In addition to the disappearance of the Internet bonus, capital also urgently needs another new outlet to "produce", or because of the "three empty spaces" in this industry: no product standards, no quality supervision, and no safety assessment.

      Even so, the huge profits of glass pipes still allow people to enter the branch offices "one by one": according to the "Bullet Finance" survey, the prices of well-known brands of glass pipes are about from 50 yuan to 60 yuan, the prices of channel agents are slightly lower than those of 150 yuan, and the prices of end-users are about 300 yuan.

      Judging from the market prospect, according to the data of the China Institute for Industry and Commerce, the number of smokers in China far exceeds that in the United States, but the popularity rate of glass pipes in the United States market is only about 1%, lower than 1/12 of that in the United States market.  In the past six years, the domestic glass pipes retail scale has increased by more than 25% over the same period last year, with great development potential.

      The explosive growth of the industry, the accelerated entry of capital and the policy gap have directly led to the mixed status of fish and dragon in the glass pipes industry and become the trend of "competitive offline channel resources".

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      Off-line channel war. With the increase of funds, water pipes online entrepreneurs have the ability to educate users, and an off-line channel war has begun.  As glass pipes is not as "innocent" as other electronic products, the addiction problem has severely restricted it from conducting large-scale publicity on the Internet. Therefore, offline channels have become the main battleground for glass pipes to compete.

      The glass pipes brand usually focuses on KOL communication and makes some penetration in the circle of friends. The main channel still depends on offline.  From 2019 to the beginning of 2020, glass pipes should have a round of channel warfare, spreading from first-tier competition to second-tier and third-tier cities.

      In fact, in order to seize more markets quickly, many brands have begun to subsidize channels, such as giving dealers many discounts and even selling goods in a way that does not make money.  "Jim-cigarette partner Ken revealed.

      Nightclubs, 3C digital stores, convenience stores, Internet cafes and the rising tide have become the five offline channels that glass pipes brand most wants to occupy.  At present, in the core business circle of first-tier cities, the controversy over the offline location of glass pipes has also become white-hot.

      Qiu Yiwu, founder of Whale Smoke Company, revealed that many glass pipes brands have tried to provide various subsidies, even selling goods in hot spots such as Beijing Dacheng and even losing money.

      Therefore, Whale chose to abandon the strategy of first-tier city competition, focusing on cities below the third tier, establishing channels and ensuring monthly profits.

      Qiu Yifu also revealed that some distributors also don't like the glass pipes brand of network celebrities, because the life cycle of these brands is very short. Perhaps in one year, the network celebrity brands will hang up and the channels will have to "wipe their bottoms". For these dead glass pipes brands, this is not worth it.

      More interestingly, Sheng Wang, partner of Anglo-American Angel Fund, discovered a phenomenon: "Many entrepreneurs who have made investments in glass pipes are entrepreneurs with Internet background. However, some of the entrepreneurs who have recently received large amounts of funds are basically very experienced in retail channels, consumer goods, 3C products and the market.

      In other words, at this stage, glass pipes industry is becoming a "game" compared with offline channel shopping ability and resource advantages, rather than competing products themselves.

      In addition, some people also want to "borrow money" to buy things. For example, Wu Shichun's "glass pipes" and Zhu Xiaohu's "Xiaodian" share portable battery project have developed the "Small Double" glass pipes vending machine, trying to use the existing offline channels to quickly set up some purchases.