By Peter Styles, Strategic Marketing Manager at LiQuid
The vaping business is booming, and retailers have more opportunity than ever before to capitalise on the growing trends within the category. From the smallest corner shops to major supermarkets like Sainsbury’s and Tesco, vaping products now have pride of place on shelves across the UK and indeed around the world.
If you are a retailer looking to build a range of ‘next generation products’ (NGP), or are wondering how to maximise sales of the range you already have, expert vaping retailer LiQuid has put together this guide on key things to look out for when building and merchandising your offering.
General Advice for Vaping Retailers
This advice may seem obvious to some, but they are vital cornerstones for building a successful retail environment:
Visibility
Drive visibility by using eye-catching display units and promotional materials like posters, stickers, and other creative assets. Some suppliers can provide retailers with a highly-versatile countertop solution. Our modular display cubes, for example, which can be stacked depending on space, are capable of housing up to 10 SRPs. Interchangeable inserts allow for new ranges and promotions to be easily integrated, while secure rear-facing access grants practicality and functionality. Items like this can create a more professional and organised retail environment, which can make or break a sale.
Positioning of the stock itself is also vital. Make sure things are properly grouped by brand, flavour and strength to make the browsing experience easier for the customer. Taking advantage of the merchandising diamond principles to capture the most of your customers’ attention will make a big difference to your conversion rate.
Point of Sale (PoS) Material
Boost sales potential by utilising a variety of point-of-sale (PoS) materials where possible such as single and double-sided window posters, indoor posters, counter mats, window stickers and shelf wobblers to catch the eye of the consumer and maximise brand impact at the point of sale. Make sure you regularly chase your suppliers for the latest versions to ensure you appear to be at the forefront of trends and promotions in the eyes of your customers.
Effective deployment of educational PoS like flyers can also make a big difference in converting vaping products. There is still a significant lack of understanding of vaping products by consumers and, while never a substitute for proper staff products knowledge, using PoS materials that help explain the basics can be very useful in maximising sales.
Availability
Increase customer retention by regularly monitoring stock levels and ensuring that best sellers are always replenished. Ensure your range is supported with a strong selection of e-liquids in varying flavours and strengths.
Vapers come in all shapes and sizes, so we also recommend stocking at least one open system device such as those with refillable e-liquid tanks, and one closed system device such as the LiQuid Air, which uses pre-filled pods; this way you can cater to all needs and personal tastes in-line with current market trends.
Be mindful of seasonal spikes around Vapril, Stoptober and New Year by ensuring that your stocks are adequately bolstered in preparation for increased vaping retail traffic. Having the above points covered before these seasonal events land will help maximise your profits and ultimately build your reputation as a trusted vaping retailer, alongside any established convenience success.
Product Knowledge
Invest in staff training so that your employees have, at the very least, a basic understanding of the category and are well-informed on new products and their unique selling points. Consumers who are new to vaping will often ask for advice on what products to buy so it’s important that staff are knowledgeable on the different product types and how they work. Being able to answer these questions and guide them on their vaping journey will only strengthen your reputation as a trusted retailer.
Should I Stock Disposable Vapes?
Disposable vapes are a potentially profitable option for retailers with many UK consumers regularly looking to buy the compact devices. However, there are some moral issues surrounding disposable vapes that may give you reason to pause when considering adding them to your NGP ranges.
What are Disposable Vapes?
Disposable vapes come in different shapes and sizes but they all largely conform to the same design principles:
- An all-in-one (AIO) device assembly
- Buttonless activation
- Single use – no recharging
- An internal chamber containing approximately 2ml of e-liquid
- A small battery designed to last just long enough to consume the e-liquid
- A brightly coloured hard, non-recyclable plastic shell
- The e-liquid inside is always nicotine salts or ‘nic salt’, typically high strength 10 or 20mg
- Almost all will give an indication of lifespan given in ‘puffs’ – e.g. ‘600 puffs’
Why are Disposable Vapes a Good Thing?
The sheer popularity of disposable vapes alone makes them a highly tempting addition for most retailers’ inventories. They are ‘trending’ everywhere consumers take influence, from social media to shop windows, so it’s hard to leave the house without seeing a disposable vape in 2022.
For consumers of nicotine products, regardless of whether they vape yet or not, the temptation is ever-present, which makes them a very easy item to promote and sell as they are relatively self-marketed at this point through the actions of word of mouth and social media.
Recognisable Brands
Stocking brands like Geek and Elf bar, or relative newcomers Elux will immediately generate sales through recognition alone. These brands were the ones to hit UK shelves first, and retain a reputation of quality and reliability as a result. While not without their faults, these brands in particular present greater opportunity for profit than others.
Fast Sellers
The nature of disposable vapes combined with the behaviour of their users makes them extremely fast moving. The fact that an average 600 puff disposable will last at most two to three days translates to repeat business. While some users will pick one up as an alternative to their existing vape for a night out or standalone occasion, there is a whole segment of vapers who have only ever used, and continue to use disposable vapes exclusively.
Dedicated Audience
Despite the rise in disposable popularity, the sales figures for traditional vaping products like 10ml bottles have remained largely unchanged. This tells us that there is a dedicated and entirely new audience buying disposables. The benefit here is that a retailer can enjoy their usual footfall alongside an entirely new customer base by incorporating disposables into their stock.
Why are Disposable Vapes a Bad Thing?
Increasing attention from Trading Standards agents across the UK make these a high-risk/high-reward option. You may enjoy a temporary boost in profits by carrying them; however, you may also face severe reprimand and fines by official authorities for a number of reasons. The worst part is that without a strong understanding of vaping regulations, retailers can fall into these traps without even knowing they are breaking the law.
Youth Access
This has become the hottest debate among authorities. The biggest issue associated with disposable vapes is that they are regularly falling into the hands of underage users. Many of these users have never vaped or smoked previously, which is resulting in a whole new generation having a nicotine addiction.
The bright colours, flashy designs, and creative flavours (which often mimic sweets and beverages younger audiences gravitate towards) have faced harsh scrutiny. This has only deepened as time has progressed, and officials are looking to take definitive action to clamp down on retailers to ensure this trend is curtailed.
Illegal Imports
One of the biggest issues of public safety from disposable vapes comes in the form of illegal variants that have flooded the market since launch. Initially, these were introduced by frankly shady van salesmen who acted to capitalise on the sudden trend. Retailers were desperate to keep these devices well stocked and so would accept offers from less reputable salesmen who were in fact touting illegal disposables that do not comply with UK or EU safety laws.
Intended for the American and Chinese markets, these devices are 30mg above the legal nicotine limit in the UK – as high as 50mg vs the legal 20mg. This is not always accurately reflected on the packaging. In addition, said packaging does not carry the required warnings and symbols intended to protect consumers from allergens or harmful components. As these devices would not pass UK registration for safety reasons, these devices are a huge unknown, with no regulatory body ensuring banned flavour chemicals like diacetyl (infamously linked to popcorn lung) are not present. They also contain over the legal 2ml e-liquid limit, as they are described as offering circa 3,000 puffs versus the 400-600 typical of legal examples.
Consumer Wellbeing
Disposables pose a moral issue in terms of duty of care to customers. The nature of nic salt e-liquid means that an extremely high strength like 20mg is very smooth – the experience belays the staggering amount of nicotine they deliver. This plays into the hands of youngsters who are able to puff on them with ease despite the fact that even a legal disposable (20mg, 600 puff) contains as much nicotine as 50 cigarettes.
Environmental Impact
Disposables present one of the least environmentally conscious products the vaping industry has ever produced. This is because they are single use, are made from entirely non-recyclable material, and contain a cheaply made battery that poses a risk of explosion if exposed to the elements. They contain trace amounts of nicotine and e-liquid residue, which is harmful to a variety of aquatic life and is a general pollutant.
Sell Responsibly
Combining the advice shared by LiQuid with responsible business practices will allow you to enjoy a profitable vape retail experience and create an environment where your customers feel they can get the products and advice they need to make the most of their vaping journey – happy customers will return, and vaping consumers can be fickle – make sure you give them an experience they can’t easily find elsewhere!
