Survey Shows Increased Retailer Confidence In E-cigarettes

By Author: Brett Horth
Total Articles: 18
Comment this article

A survey conducted by Wells Fargo showed confidence of the retailers is growing steadily in electronic cigarettes, with a major boost from Lorillard’s acquisition of an e cig company. The survey reveals that an interesting 73.1% of those who participated in the survey believe that electronic cigarettes are set to become a trend that will last for a long time to come, similar to the way that energy drinks entered the market. An increasing number of convenience stores are now removing tobacco products from their shelves and replacing them with electronic cigarettes, thereby maximising profits. The survey also shows that most stores are beginning to take e-cigarettes seriously.

Retailers’ reactions

One of the tobacco retailers under study says that the belief in e-cigs is high in the industry. They are a practical category, he says and that they will grow further, pointing out that Lorillard’s purchase of an e-cig brand was a good indication of the same. This was just one retailer’s opinion. The majority believe that the acquisition increased the ...
... confidence in the e-cig industry significantly. Many more big-name tobacco companies have been expected to do the same thing as Lorillard, and purchase e-cig brands while businesses are all set to capitalise on the trend that is growing tremendously. Before Lorillard completed the acquisition, only a handful of convenience stores were courageous enough to make investments in the promotion of e-cigs, but the deal convinced them that electronic cigarettes will stick around for a while.

Increased profits and regulations

An important reason for enthusiasm surrounding e-cigs can be pointed at the news of a certain retaler who recorded an amazing 193% sales increase from the 1st to the 2nd week of selling e-cigs in its shop. Obviously not all retailers who promoted e-cigs saw the same amount of growth in profit, but with more than 2.5 million users of the device and with $300 million estimated in revenue, there is enough proof of electronic cigarettes’ potential and worth.

Not all of the people that participated in the survey shared the same level of optimism about electronic cigarettes. Some of them had concerns whether the industry had the ability to sustain the growth, while some cited the possibility of the FDA exercising more regulations on the device, and federal taxes. Although the analysts at Wells Fargo agree that e-cigs are here to stay, predictions are also made on increased FDA regulations and taxation.

About the Author:

The Article is written by Brett Horth, Director and Head of Client SEO Strategy at Evolve Digital Media. He is also associated with ElectronicCigaretteUK.com. ElectronicCigaretteUK.com offers one of the best electronic cigarettes in UK and all around the world. They have the largest selection of the electronic cigarettes and smokeless cigarettes.