Is E-Cigarette Industry Huffing and Puffing the Tobacco Industry?
Are the days of tobacco industry bullying the e-cigarette industry numbered? Years of trying to ban the e-cigarette everywhere by making them look like the bad guys may be over soon according to resources. Assessing the situation right now it seems that it’s the tobacco business is going to be the one out of business.
E-cigarettes are electronic devices that emits smoke vapor without the harmful chemicals found in traditional tobacco. It is comprised of a rechargeable battery, a cartridge where the vapor liquid flavour (e-juice) is housed and an atomizer attached to all these two parts to vaporize the e-juice using heat coming through the wick that was heated by the battery power.
Cease Tobacco Shift to E-Cig?
Mashable says that, in a few years’ time it might be easier to sell an e-cigarette than to be on business in the US. If the e-cigarette will be treated like they were tobaccos, then tobacco sellers can sell e-cigarettes over the counter and can retain the same license selling tobaccos. Birth will be painless if this is the case and it will be so easy to shift for retailers. If that will be easy for them demands will rise and shifting manufacturing will be easy as one, two, and three. In reality today e-cigarette sellers already have a tobacco license. These retailers won’t need temporary cease operations.
If You Can’t Beat Them, Join Them?
This was evident when tobacco manufacturing giant R.J. Reynolds (maker of world’s bestselling tobacco brands) launched VUSE e-cigarette last July 2013. A seemingly “if you can’t beat them, join them” move and a big surprise to the industry. Could also be the start of the fall of the giant tobacco manufacturers?
A Case of David and Goliath?
Big tobacco company e-cigarette product distribution has been making the small e-cig manufacturers dig deep into their pockets to be able to cope up with the supply and demand. Something that is so easy with the big ones. This is a big shove to the small e-cigarette manufacturers and they are almost on the ground because of the hit. It looks like the giant has been really angered. And big companies can trail money making products and will definitely be attracted to the smell of money. They are the ones that has the capital to manufacture sealable projects.
Big Corporation launches Advertising War
R.J. Reynolds after many, many years is launching a TV commercial. It is a 60 second commercial to advertise VUSE e-cigarette. The company has long been silent on advertising their tobacco products. There is an important reason why they are now investing on advertising to promote their new product. The ad does not focus on smoking or vaping the product. But it brags about two things: first it claims as the only e-cigarette in the market that has microprocessor that enhances the vaping experience by providing a more realistic or close to the real thing. And secondly, it is emphasized that it is “MADE IN THE USA” in Winston-Salem. The ad focused on credibility which is real aggressive and defensive move on their part and is out to crush someone out there.
What does FDA has to say?
The US Food and Drug Administration (FDA) was scheduled to decide on the regulation last November 2013, however, it was postponed until further notice. Meanwhile, while there is no federal regulation is in existence this is putting a toll on the e-cigarette industry. An advantage over the long time regulated tobacco industry. When the FDA finally announces its regulation it should be downhill for most states. Otherwise, the e-cigarette industry will have to be on their own.
So who is the Big Bad Wolf?
With all these sparring activities between industries it’s a neck to neck fight. It really is obvious who the underdog is. However, it seems that the underdog is making more profits than the giants. The big ones however, are not really surrendering but is engaging a different strategy by getting into the game itself. And is really aggressive and determined to beat the e-cigarette industry right where their own turf is. But are these actions offensive or defensive? We really hope that it’s a bold and desperate move. But in business, the bottom line is always where the money is.