Out of 16,5 million smokers, there are today 2,5 million vapers in France, including 1,5 million regular consumers. After a big start, the electronic cigarette market is said to be collapsing with sales dropping 30%, writes the JDD. "False" retorts the profession, which recognizes the closure of specialized stores but certainly not the decline in activity, which is progressing in particular on the Internet.
The electronic cigarette market is in the dark. Its actors, with often contradictory interests, do not agree at all on the figures. According to the inter-professional federation of vaping (Fivape), which brings together all professionals in the field, the market jumped to 450 million euros in 2014, up 64% compared to 2013 (275 million). Less optimistic, tobacconists still see it on the rise, but at 350 million, while the tobacco distributor Logista estimates that the market has shrunk to only 250 million. But everyone agrees on one point: after the explosion of recent years, many stores will close.
Low-end stores are the first to pull the curtain
While users have spent between 70 and 100 euros to equip themselves with an electronic cigarette, they now only spend around thirty euros per month (35,8 euros according to a TNS-Sofres survey in February) on accessories and especially for refills. From 70% of sales in equipment and 30% in e-liquid, the distribution of turnover has completely reversed (70% e-liquid - 30% device). Yes, the activity of some stores has decreased compared to the start-up, but this volume of business was not normal. Today, the monthly turnover is around 20.000 euros on average per store, Stéphane Roverso, founder of VapoStore, one of the leading French networks, told us. It is especially "the opportunists who have favored the margins by offering poor quality products which have already closed or are in the process of being closed," explains the manager of Vapostore. In the end, only serious shops will remain, which offer good brands and regularly renew their stalls.
The closures of shops will continue
To take advantage of the boom of vaping, the shops have grown like mushrooms, sometimes going so far as to settle side by side: "60 shops in Marseille, it's too much," said a distributor. "You have to compare the e-cigarette to any other sector: there will be a concentration between the distributors who supply the tobacconists, between the networks of specialized shops and even between the manufacturers," says Fivape. France could suffer the same fate as Spain where the number of stores was divided by 10 last year, from 3.000 to 300. The president of the Fivape, Arnaud Dumas de Rauly, himself, recognizes that the number of specialty stores will drop sharply: "2.500 2014 stores, they are 2.000 today and should be no more than 1.500 at the end of year. However, at the industry level, the federation, which includes distributors but also French manufacturers of e-liquid, does not see a decline in sales and provides, at worst, a market stabilization in 2015.
Internet sites take over
While the shops are closing, the other market players are very dynamic. Indeed, to equip themselves and buy refills, users can also go to tobacco shops and increasingly on the Internet. Today, only one in two vapers buys their products in a specialized store, according to the TNS-Sofres survey. The Internet appears to be the sector's main growth driver. "We have 150 new customers per day", affirm the two partners of the Le Petit Vapoteur site, market leader on the Internet. “People are retooling and the equipment is changing very quickly. It is easier for us to follow the trend than the store networks ”. After an astronomical growth of 800% in 2013 and a doubling in 2014, the site's turnover has increased by 30% since the start of the year. Unless the legislation is tightened, these genuine online e-cigarette supermarkets should therefore continue to attract users.
A sword of Damocles above the vapers
Consumers and professionals in the sector all fear the application in 2016 of the European directive on tobacco products, which provides in particular to ban advertising, reduce doses of e-liquid and obtain an authorization 6 months before the output of a product. An evolution that directly threatens all specialist retailers, their accessories and their profusion of tastes. At the same time, the tobacco industry is reportedly looking to get its hands on the market by offering small e-cigarettes that meet standards but are less effective in quitting smoking. It's understandable - tobacco sales fell 5,3%. Stop aid products (nicotine patches and gums) have fallen by 25%, which could also worry the pharmaceutical industry.
Source : Capital.fr
