Vapor: American electronic cigarette industry star

Vapor Company is a new star electronic in the U.S. electronic cigarette industry, it is also the only one U.S. listed companies in the industry. With more and more traditional smokers start to emphasis on health problems, the potential of Vapor Company to seize tobacco companies' market share should not be overlooked.

Vapor company as a leading U.S. supplier of electronic cigarettes, it’s brand include Krave, Fifty-One, Green Puffer, Americig, Vapor-X, Alternacig, Vapur and so on. Sales of the company's multi-brand strategy has achieved good results, which sales channels coverage is also very wide, including network platform, TV sales and retail outlets throughout the United States. Currently, Vapor is considering looking for celebrity endorsements for their products to further enhance sales.

Good results

Vapor Company announced Oct. 21 performance report show that, sales of the company in 2013 third quarter is more than 6.4 million U.S. dollars, compared to last year rose $ 2.6 million, increases up to 66.3%. A sharp rise in sales primarily come from the increase in sales, improved product instruction and decreased the average cost per unit of product.

In the face of steady improvement in sales, Vapor Company reduced advertising spending, from $ 800,000 in 2012 third quarter decreased 50.3% to $ 400,000. Vapor Company has significantly reduced its brand Alternacig of Internet advertising, print ads and TV direct spending, but the company said reduced advertising spending is only temporary.

Future risk

In October, Vapor Company conducted the latest round of financing, this round of financing has greatly improved the financial situation of the company and future growth potential. Vapor company's cash holdings amounted to $ 9,000,000, which is enough to support its balance sheet and business expansion. However, the outlook does not mean that the future will not be at risk. Traditional American Tobacco Company Lorillard's Blu electronic cigarette brand is the largest competitors of Vapor. Recently, Blu electronic cigarette market share in the U.S. rose to 45.6%, 40.1% over the same period of last year; among them, the tobacco shop sales channels share was 37.2%.

Tremendous growth prospects for the global electronic cigarette market

Now, the electronic cigarette in the youth population has become increasingly popular. According to the U.S. Centers for Disease Control and Prevention statistics, 2011 to 2012, the number of American junior high school students and senior high school student smoke electronic cigarette is doubling. Until to 2012 students taking over electronic cigarette are about 178 million students.


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