BEIJING, CHINA / ACCESSWIRE / November 8, 2019 / He Wei, a Hohhot businessman, had 5 SNOWPLUS retail franchises this autumn, one of which hit the sales beyond RMB 40,000 and broke even within just two months. “I will open another five by the end of this year,” said the 55-year-old northerner.
He joined because the conditions of this ENDS quickly aroused his interest at first: joining as an individual for free; store design and decoration allowances; goods allowance package and promotional materials, such as display shelf and disposable e-cig holders. In the second and third tier cities, it only took about RMB 50,000 to open a “small and beautiful” store. Meanwhile, the preparation for opening a new store is cut down to only 15 days. In 2019 – a year with a sluggish economy, cash is king and it means to get earnings as soon as possible.
He Wei is just one of those people profited from SNOWPLUS. A store in Jinqiao, Shanghai, invested less than RMB 100,000 hit the total sales of RMB 200,000 three months later, with a monthly average profit of about 40%.
In early June, the first retail franchise in East China opened in Wuhan; in late June, the first retail franchise in Northeast China opened in Dalian; in mid-July, the first retail franchises in Southwest China and North China opened in Chengdu and Shijiazhuang respectively… The operation data of SNOWPLUS shows that, 85% of franchises stores break even within three months while it takes 4 to 6 months for most of other e-cig brands. Because of this, SNOWPLUS has developed nearly 1,000 retail franchises in more than 40 Chinese key cities since May 2019.
In SNOWPLUS – a dark horse in e-cigarette industry, He Wei has another identity – one of the nearly 300 dealers. Different from running franchise stores, these dealers get goods from SNOWPLUS and then distribute to various existing offline channels, such as chain stores and couple stores which can be seen everywhere to replace condoms on such highly prized counters. Distribution and franchising are different: dealers are large buyers with wide channels while franchisees run monopoly stores individually. SNOWPLUS attaches sufficient importance to both, which is an important reason for the rapid growth of its sales.
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“we don’t have the so-called provincial or even national dealers. Instead we give the valuable business opportunities to those interested and powerful dealers in more than 180 cities of all size. They work with SNOWPLUS to nurtured the e-cigarette category.”
Source from Electronic Cigarette Industry Committee, China Electronics Chamber of Commerce believed that, SNOWPLUS’s overwhelming offline action comes from a new idea of taking e-cigarette as a FMCG product. “FMCG” means fast-moving consumer goods with short service life and values packaging, branding and popularization in its operation mode. The allure of e-cigarette as an alternative product lies in that it can cover more channels than any other traditional consumer goods. In addition to traditional grocery stores, tobacco and wine shops and convenience stores, bars, restaurants, cafes, hotels, lottery centers and even gyms can be channels for good sales.
“We took the lead in opening CVS and TT channels of traditional FMCGs by rolling out in leading chain stores and convenience stores, such as SINOPEC EASY JOY, PetroChina USMILE, MEIYIJIA and LAWSON,” said Liu Zhaohua, head of SNOWPLUS offline sales.
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In addition to FMCG and franchise, SNOWPLUS also has unique self-support stores. Dozens of self-support stores scatter all over the territory of China to showcase the company image. In China Beijing World Towers where the SNOWPLUS Headquarter is located, there is a SNOWPLUS self-support store downstairs. The salesmen not only sell products, but also tell stories about how SNOWPLUS started its business and the e-cig culture.
The data from a third party shows that SNOWPLUS has more than 100,000 offline stores in more than 180 cities, covering almost every provincial administrative area, except Tibet and Taiwan. There are already offline stores in some remote places, like Shihezi in Xinjiang Uygur Autonomous Region.
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