The outbreak of coronavirus has changed the lives of people all across the globe. Economies chose extreme measures to flatten the curve and control the mass spread of this contagious disease. So, apart from following WHO guidelines, many countries resorted to partial or full lockdown as a safety measure to handle this extreme situation of a public health emergency.
Due to this, various industries had different experiences of growth or steep decline. While the healthcare industries witnessed massive demands, others deemed as unnecessary items could not make many sales. The growing Vaping industry, however, experienced a mixed response varying from one state to another. Let us find in detail how the vaping industry evolved and how it is adapting during this rapidly changing environment.
Impact of COVID-19 on the Vaping Industry
The vaping industry showed a positive trend in the past couple of years, broadly, due to the advancements in the industry. Better quality products, along with the decline in the prices attracted the user base. Many of them switched to vaping as a cost-effective alternative over traditional cigarettes. The perception of the customers plays an important role in shaping the future of an industry. Multiple reasons lead to a steady increase in the demand in the vaping industry during the Covid-19 outbreak. The industry benefited from the increase in the demand for recreational items during the lockdown. Following WHO guidelines, many tobacco smokers also switched to vaping products as a transitional phase. The availability of a delicious range of e-juices on online websites like Kingston e liquids made people buy products from their homes’ comfort. The use of vaporizers and vaping pens to administer several medicines is another important factor that increased demand during this period.
Overcoming Supply Chain issue
The Vaping industry comprises the various component structures that contribute to the manufacturing, supply, and distribution of the vaping products. Broadly speaking, the ancillary industries that supply mods, coils, atomizers, and e-liquids, and other components, etc., coherently work to stabilize the industries’ value in the market. Any disturbance in either of the forces can create a toppling effect on the industry as a whole. China exports most of the vaping products to the US. Restrictive cross border movements, insufficient logistics, and limited manufacturing activities during the outbreak created a huge disruption in the distribution of vaping products. Tough situations like these challenges businesses to take creative approaches. Vaping Industry is striving to reduce dependency on other economies and choosing backward integration for a continual supply of raw materials.
Adaptation is Important
Any change in the external environment is beyond the control of any economy or business. Those industries that rapidly take measures to adapt to such changes are the ones that withhold well. Sadly, places such as Colorado, where vaping products were deemed as non-essential, many small retailers could not cope with the shutdowns and lack of proper supply. Specifically, businesses that usually depend on everyday sales to cover the operational cost could not sustain the growing pressure in the market. However, those who strategically organize their business could turn the situation into an opportunity. Other places like Arizona and Oklahoma that remained opened were able to carry on with their usual business.
Business remodeling is a developing trend in the vaping industry.Many manufacturers and small scale distilleries overhauled their manufacturing process to create a separate line of sanitizing products and e-liquids. The unavailability of the skilled labor and distribution channel was another issue that hindered the supply chain. Many businesses adapted well to the situation by simplifying their distribution channel, like having their dedicated transportation system and storage near the markets. The online business did particularly well during this time, and the trend will continue to grow. Online retailers followed innovative marketing techniques to engage customers. Some of them offered great discounts while others distributed freebies such as gloves and face masks to attract new customers. Many businesses also earned goodwill by contributing to society during the crisis. As a part of their CSR programs, they distributed free healthcare products to front line workers. Despite the ups and downs in the demand and supply forces, the vaping industry is gradually picking up. As all businesses, big or small, are using multiple approaches to adapt well. Also, the lock down situation and limited economic activities in various states did not deter users from using vape products, which is a good sign for the industry.
The Bottom Line
The US vape market remains to be a fast-growing industry. However, the dependency on the foreign markets can hinder the growth prospects unless followed with appropriate reforms and supporting policies. The investment in the core industry, along with ancillary units, can be hugely beneficial in the long run.
This is a guest post by Rebecca S. This post has been edited for syntax and grammar. The Law offices of Jay Leiderman is not responsible for the accuracy of the content herein or any opinions or ideas expressed herein. This post is for entertainment and literary value and is not intended as legal advice. This post does not establish an attorney-client relationship of any sort. If you have legal questions about ideas presented herein please contact a lawyer knowledgeable in this field of practice.