I have been vaping about 2 years now. Best decision I've ever made. The growth in the industry reflects the many that are converting and sticking to ecigs. This is a fact and is the main reason I've stayed long this stock.
BUT.... The fact is VPCO sells nothing more than starter kits. First ecig I used was one made from a different company with a device very similar to the VaporX product. After this I moved to more advanced products with the ability to choose the "type" of vape and the ability to rebuild my own atomizers to my personal preference.
The "true" vapers are where the money is. In southern California there are literally 10-15 vape shops within a 10 mile radius of my home, one is actually right across the street from where I live. NONE of these specialty shops carry these traditional starter kits that look like the analogs. NONE carry the Blu or Njoy brand, and I honestly have never seen a VPCO product out here anywhere. Vaping has not only become an alternative to smoking, it has become an obsessive hobby. People spend hundreds of dollars on certain devices, and enthusiasts wait in line (black Friday style) when specific products are set to be released or stock is being replenished. The money is being spent on more advanced products.
"True" vapers do not purchase their vape gear from gas stations, or pharmacies, or smoke shops, or groceries, etc.
Look for the ECF forum and see where the money is.
BUT....If and when the Feds decide get involved, both the e-juice and the devices will have to pass certain regulations, and I truly believe these bigger e-cig companies are in the best position once this occurs. I fear these small specialty shops may have to close up shop because the products they carry won't meet gov. regulations, or significant price increases are going to occur instead.
You are spot on about those small shops and the other small makers. Once the FDA gets involved they will go out of biz. They make the vaping fluid illegal to produce outside of approved manufactures etc and those other companies have no leg to stand on. Only the established companies will be able to produce or distribute the e cigs
VPCO has the Krave and Krave King etc which is not a starter kit. Its a normal disposable e cig. That is where the growth is and that is what the company is investing in. Over time I believe they will trend away from the starter kits although at this point they are very profitable.
Your regular everyday smokers who switch will want an analog or similar looking device, not many people are going to want a complex vaping device and the disposable version you dont have to carry still has appeal.
This is still only 90 days in a 5-10 year + transition. Sales where not expected but not totally brutal. 1.5mm of sales going into Q3 already so will need to see what that does. There is going to be more advertisement from Krave coming out this quarter too.
1) Getting regulatory approval takes time and lots of money. Compared to the bigger boys, Is tiny VPCO really in any better position to survive than a mom & pop boutique shop? Really?
2) Krave & Krave King may be growing, but that doesn't make up for the fact that VPCO numbers sucked, which clearly shows that VPCO doesn't have enough good products out that make up for the declines in their failing lines. There's no excuse for that, and increasing advertising is like putting a bandaid on a bloody stump.
3) As e_cig00 suggests above, the REAL growth in the e-cig market is with the young people who've been brainwashed since kindergarten that smoking is bad, but are desperate for a safer alternative. No matter how you slice it, hooka shops are appealing to teens for a reason. VPCO needs to focus on offering products for teens that go to hooka shops, because those are the most demanding e-cig consumers. Satisfy them, and sales to other demographics will naturally follow. In growth markets, sales of the ordinary products eventually stagnate, where sales of the premium products thrive. The e-cig companies whose products satisfy the most demanding consumers are the ones that will win this war over the long term. Fire the VPCO product design staff and start over!