Have your stores left behind classic cigarettes for the trendier e-cigarettes? Vaping products have become controversial in the past few years as the Food & Drug Association (FDA) began to scrutinize products and flavors.
Still, the category remains popular with legal-age adult consumers who remain loyal to the category as an alternative to traditional tobacco products, but it will continue to evolve. In October, the FDA began cracking down on menthol e-cigarettes in addition to its crackdown on flavored and disposable vape products.
Understanding who uses vape products will help retailers sell items more responsibly and profitably. Data research firm CivicScience found that 12% of U.S. adults 18 and older use e-cigarettes or nicotine vaping products daily to weekly. An additional 9% use them occasionally, while 79% are non-users. People who vape daily or weekly tend to exhibit distinctly different traits and consumer behaviors.
To help retailers understand who the vape customer is, CivicScience outlined five opportunities to connect with vape consumers. The key takeaways include:
1) Vape consumers are nearly three times as likely to use the Amazon Shopping app when making purchases compared to those who never use e-cigarettes. For convenience stores, this presents a unique opportunity to expand profit centers. Larger stores with available space could consider partnering with Amazon to become an Amazon Hub. The Hub program enables businesses with a physical location to offer secure package pickup and returns to Amazon customers. In turn, they reap benefits from the potential increase in foot traffic and sales at their location. Hub partners can select from various retail solutions, such as Amazon counters and lockers, to serve customers in their neighborhoods. This is effective for driving store traffic and vape customers.
2) Surprisingly, 47% of vape users are vegetarians, compared to only 4% who do not vape. This is helpful data for stores with strong vape sales and a solid foodservice offering. The opportunity here is to grow the food program with offerings tailored to vape customers. Retailers can speak directly with customers about what they are looking for or connect with consumers through their mobile app or loyalty program. Converting even 10% of vape customers to an occasional foodservice customer is incremental sales growth that will positively impact the bottom line.
3) More than 60% of vape consumers report being at least a little influenced by social media about what food they buy – just 17% of non-users say the same. This is another strong case to develop menu items that appeal to vape loyalists. With young adults being strongly influenced by social media, retail tools like mobile apps and e-couponing are more important than ever because they can immediately impact sales. Furthermore, you can test the efficacy of coupons and cross-promotions by redemption data to understand better who your customers are and what they are buying. This will also help you reduce inventory costs and avoid potential out-of-stock situations on high-volume items.
4) Nearly 40% of vape customers say they follow the NBA “very closely,” which is 26 points higher than those who do not vape. As with foodservice, this opens the door to cross-promote and drive sales to other categories. For example, branded sports merchandise like hats and t-shirts have high rings and margins and are solid impulse purchase items. Professional sports teams also frequently partner with beverage companies and lighter brands to advertise promotional items that appeal to vape consumers. Stay abreast of these opportunities to appeal to your consumers.
5) E-cigarette users are less likely than non-users to care about a brand’s stance on social issues and to boycott brands supporting causes they oppose. This one is more of a warning than a sales opportunity. All customers seem to support charities, especially around the holidays, such as fundraising drives to support children, veterans, and cancer research, but going too far on a controversial issue may work against you in your effort to connect with vape consumers.
As the economy continues to struggle and consumers have less and less disposable income, understanding how to capitalize on cross-promotions could help you gain a larger share of the consumer’s wallet. Be open to trying new things, but talk to your customers to find out how you can meet their needs more effectively.
Elie Y. Katz is the president and CEO of National Retail Solutions (NRS).
