The vaping industry has registered impressive growth in the recent past, evidenced by the high number of vape shops mushrooming at every turn.
Increased awareness of vaping as a safer and healthier alternative to cigarette smoking is the primary factor driving the growth of the vaping industry. Besides, vaping is also viewed more like a lifestyle. That’s why you’re likely to come across many cart pens users who do not necessarily have a history of cigarette smoking.
As an investor, now seems to be the ideal time to capitalize on the lucrative vaping industry. However, there are several factors to consider before taking the plunge.
Read on to learn more about the things to keep in mind while setting up a vape shop.
Understand What Vaping Is
The term vaping may sound all-too-familiar. But the concept can be too fuzzy for some aspiring investors to grasp. You want to start by understanding what vaping is even before analyzing your prospects in the industry. This information will help you determine whether to go ahead and establish a vape shop or give it a second thought.
Now, vaping is a process of inhaling vapor generated by heating certain herbal materials in a device called a vaporizer. A vaporizer goes by several other names, including a vape device or electronic cigarette (commonly stylized as e-cigarette or e-cig).
Know the Market Size
There’s no denying the fact that the vaping industry is lucrative. But the term lucrative can be misleading to most investors. So, before setting up a vape shop, endeavor to arm yourself with raw data on how the industry is faring.
According to figures by Grand View Research, the global vape market size was estimated at USD 15.04 billion in 2020. The same statistics indicate that the industry is poised to grow at an impressive compound annual growth rate (CAGR) of 28.1% between 2021 and 2028.
Based on these figures, it’s safe to conclude that the vaping industry is bullish.
Research the Vaporizer Types Available
Electronic cigarettes come in all shapes and sizes. It’s essential to familiarize yourself with all the various e-cigs out there.
Vaporizers are classified primarily based on their designs and features. The different vaporizer types include cigalikes, vape pens, vape mods, and box mods.
Cigalikes are the most basic and simplistic electronic cigarettes available. These gadgets are designed to help people make a smooth transition from smoking to vaping, hence the moniker. You’d want to consider cigalikes if targeting your products at former smokers.
Vape pens resemble the traditional marker pen, which explains the name. They come with more advanced features than cigalikes and are available in different designs, including cart pens and wax pens. Vape mods and box mods are the most advanced e-cigs. These devices are famous among seasoned vapers.
Research E-juices Too
A vaping session can only be completed with an electronic cigarette and e-juice. So, after researching vaporizers, proceed to e-juices. E-juices are special liquids formulated for use with a vaporizer. They’re also known as e-liquid, vape oils, or vape juices.
When choosing e-juice for your vape shop, the most significant consideration is to check the ingredients. Most e-juices contain vegetable glycerin (VG), propylene glycol (PG), nicotine, and flavorings.
Nicotine-based e-juices can contain naturally-extracted nicotine or synthetic nicotine. You’ll also encounter nicotine-free e-juices, as well as those formulated with healthier nicotine alternatives like cannabidiol (CBD). The ultimate choice of e-juice products to add to your store depends on your clients.
Find a Reliable Supplier
After honing in on the suitable vaporizers and e-juices to add to your vape shop, the next natural thing to do is find a reputable supplier for the same. For starters, insist on a vape supplier with an industry presence spanning more than five years. Also, go for distributors that generally enjoy approval from their past clients.
Shipping period returns policy and pricing are other crucial aspects of choosing a vape shop supplier.
Understand Your Clients
Vaping is incredibly popular with teens and young adults. According to numerous surveys, up to 20% of vapers comprise 18 to 29 years. That’s compared to 9% for vapers aged 30 – 49 years, 7% for vapers aged 50 – 64 years, and less than 0.5% for vapers over 65 years.
Since your vape business will likely attract younger clients, it’s essential to tailor your services to their needs. That includes marketing techniques that appeal to this demographic, such as age-specific lingo. Besides, you may need to set up an online e-commerce vape store. That’s because the younger generations are famous for their penchant for online shopping.
Know Your Local Vaping Laws
Vaping laws vary from one jurisdiction to another. So, it’s prudent to check your local regulations before setting up a vape shop. Don’t just pay attention to what the law says on the sale of vaporizers. Also, determine the legal position of certain herbs commonly used in e-juices, such as cannabis.
This is also the part where you’d need to understand your tax obligations.
Wrap Up
Setting up a vape shop isn’t a walk in the park. It involves careful research into the types of vape products available while also understanding your audience and local vaping laws. Hopefully, you can now launch a vape business from the information point of view.