V2, a brand of electronic cigarette and vaporizer products, announced the results of a commissioned study examining e-cigarette users’ shopping habits when buying aftermarket e-cigarette products, including accessories and e-liquids.
For the survey, 300 adult “vapers” across the U.S. were polled between May 11-12, 2016.
When respondents were asked to pick which types of accessories they had previously purchased, the most common answers chosen were e-liquid and batteries, with 71% and 59%, respectively. Another 54% selected e-liquid cartridges, 49% said they had bought a tank, and 48% said they had purchased a charger. Cases were chosen by 31% of those surveyed, with mods and drip tips as the least common choices, at 28% and 27%.
“The possibilities for aftermarket product sales for electronic cigarettes and vaporizers are numerous,” said Michelle Blair, vice president of sales, V2. “In addition to e-liquid, there is real revenue potential in sales of component parts and accessories, like batteries or carrying cases. Post-market maintenance of e-vapor devices offers a sizable retail opportunity with the markup on accessories typically 200 to 400 percent. The recurring sales potential adds up to a very profitable picture for any retailer who can attract loyal vapers. It’s very reminiscent of the mobile phone category, in fact – where device adoption has reached an all-time high and retailers are integrating more and more accessories and component parts at store locations to drive revenue growth post-purchase.”
When respondents were asked where they most frequently bought e-cigarette components or accessories, “Tobacco/Smoke Shop” was the most frequent response with 37%. Some 27% of those polled said they made these purchases primarily at a “Dedicated Vape Shop,” and 26% chose “Online.” Only 8% said they bought these products at a “Convenience Store,” while just 2% chose “Supermarket” as their main point of purchase.
“This is clearly still an untapped market for retailers – especially c-store retailers – as most aftermarket products are sold in smoke or vape shops,” added Blair. “These retailers are taking advantage of the opportunity, with more than 8,500 vape shops, for instance, having been created since 2008. Savvy c-store retailers should see this growth as a sign of the revenue and market potential.”
50% rarely encounter e-cig accessories at c-stores.
Those who did not choose a convenience store as their main place to buy e-cigarette aftermarket products were asked to select reasons for shopping elsewhere. The explanation chosen the most was “I rarely see e-cigarette accessories for sale at convenience stores,” at 50%. “I don’t often shop at convenience stores” and “Other purchase points are more convenient for me” were each selected by 23% of those who don’t buy e-cigarette accessories at convenience stores. 21% selected the last option, “Other purchase points provide more information to help me decide how to buy.”
“These numbers show that convenience stores have yet to capitalize on the potential of this growing customer segment,” said Blair. “Aftermarket electronic cigarette and vaporizer products represent a promising, albeit overlooked opportunity, for c-stores that they simply can’t ignore.”