EDITORIAL: A Case for the Vapers

OAKBROOK TERRACE, Ill. -- Vaping seems to be all over CSP’s upcoming October issue, from data and discussions from last August’s Tobacco Roundtable to an entire story dedicated to the mainstreaming of open systems. There’s certainly plenty to debate when it comes to this increasingly popular sub-segment but the one things retailers seem to agree on is that vaping-centric shops and lounges pose a big threat to their business, perhaps representing the modern iteration of tobacco shops.

 

As Richard Shortt, retail sales operations manager for the Durham, N.C.-based Erwin Oil Co., put it, “vape shops will always have more face-to-face time to educate and a better selection so they will always be a threat to our business.”

 

Shortt’s sentiments echoed that of many other Tobacco Roundtable attendees. But after spending the past month or so knee-deep in vapor stories, I have to wonder…could vape shops actually help c-store retailers looking to break into the segment?

 

Bear with me while I break down this whacky little theory:

 

To this extent, Shortt is correct: c-stores will likely never be able to compete with vape shops in terms of educating the consumer on the many different vaping devices, e-liquid flavors and nicotine levels and millions of combinations unique to this segment.

 

But isn’t it a good thing for consumers to get this education somewhere--even if it’s from a different retailer?

 

There’s nothing that says consumers will only shop where they first learn about a given consumer product good--especially one like vape, where consumers can mix and match hardware (or vaporizer) units with e-liquids from different companies. Isn’t at least in the realm of possibility that consumers might also mix and match where they buy these products?

 

Assuming consumers are willing to stray from their original vape shop, it makes all the sense in the world that they might opt for a more convenient location than most vaping-only establishments currently inhabit.

 

“I don’t know if you’ve been to a lot of vape shops, but they’re typically inconvenient,” Management Science Associates (MSA) senior vice president Don Burke said during his Roundtable general session.

 

I’m sure, like myself, some of you have witnessed this phenomenon first-hand: yes, there are now vape lounges in trendy Soho or Williamsburg neighborhoods…but more often than not, I’ve spotted these hole-in-the-wall shops under the freeway or buried so deep in a residential neighborhood that it makes one ponder if they manage to get any foot traffic. And, in terms of a convenient location, there’s no way these independent pop-ups are going to compete with the c-store channel, who owns the concept of a corner store.

 

C-stores also seemingly have the edge when it comes to pricing. By not being reliant on just vapor sales to turn a profit and dealing with more value-conscious consumers than the average vape shop, c-stores stand to be much more competitively priced.

 

Or, as one Roundtable retailer put it: “Vape shops may sell the hardware, but they’re not going to be able to beat c-stores on price and convenience when it comes to e-liquids. Let the vape shops ‘own’ the hardware--we’ll take the repeat business and margins on liquids after they’ve ushered new consumers into the segment.”

 

All this said, I think by far the most important benefit vape shops and lounges stand to offer the c-store channel is advocacy. Vito Maurici, senior vice president of sales and marketing for the Scottsdale, Ariz.-based NJOY, pointed out that vapers have an “unprecedented level of advocacy,” with a whopping 60% of daily vapers saying they’d go out of their way to recommend a product to friends.

 

And where do you think that advocacy is being bred? Especially in cities like my hometown of New York, where consumers are only allowed to vape indoors at vaping shops and lounges.

 

This advocacy is not just a crucial part of growing public awareness of a growing category, but has proven to be key as more and more state and local governments look to clamp down on e-vapor. When New York passed its indoor vaping ban late last year, it was vaping consumers and vape shop owners who showed up in droves to testify in favor of vape. Although the ban still passed, at the very least, they provided a loud and passionate voice for the industry.

 

So I ask again: is the influx of vape shops automatically a bad thing for business?