As the regulation on flavor vape tightened up from last year world wide–All flavors except tobacco were banned in China,and the whole sector have been included in regulation– Any business ,no matter you are in manufacturing or trading, can’t be operated without licence; in USA, the sales of flavor vape have been limited or banned because its inducement on teenage;more and more countries in Southeast Asia are tightening up or banning flavor vapes.The bad situation make the involutional flavor vape sector worse,which pushes the industry enterprises either strive to live in the business of E cigarette or transfer to CBD vape industry, or totally be wiped off.
Although CBD business has seen rise recently, and more and more countries or states have been loosing the regulation of CBD, mean while the functions of CBD had been recognized gradually,so it has been received by more and more people whether for medicine treatment or recreation,but the increase is gradual.When facing with rushing in of so many enterprise,the industry may undertake the impacts not only by the surging of industry enterprises but also by the idea of running businesses.
The traditional business mode of CBD vape is that the distributors or retailers will receive their customers order before issue orders to their suppliers,that means orders are based on supply,this will minimize the risk.But the prevailing business of flavor vape is that many manufacturers or brand owners massively produced the mostly popular models after trial selling,and distribute them to thousands selling ends–so that they can occupy the market within minimum time,and they receive the payment after the goods are sold out.Such mode is very similar with the fast food mode in low grade fashion market,it relies on the quick response,very big volume and small margin. When the enterprises of flavor vape enter business of CBD vape,maybe some will bring in such business mode and destroy the traditional mode,bringing intensive competition.When that date come,it will bring great shuffle and only big players can survive.
Post time: Aug-03-2023
