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Dec 17, 2015
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Could Be Trading Higher Within The Next 12 Months

After taking a long look at the landscape of the vaporizer industry the obvious trend is twofold; the decline in ecig popularity, coupled with the increasing opportunity for companies producing vaporizers and eliquid products gaining majority within the market. Vaporin Inc. (OTCQB:VAPOD) has continued to increase its market share and with the recent vape store acquisitions, the company should start to emerge as a market leader both in market value and stock price. tobacco company, Reynold's America (NYSE:RAI). Well, the rumors were true, Reynold's made a $27.4 billion offer and shares of Lorillard skyrocketed. Analysts at Wells Fargo (NYSE:WFC) believe ecigarette sales will surpass traditional tobacco, where the industry is expected to hit $10 billion by 2017. With tripledigit growth rates still in its future, and tobacco sales declining, it's assumed that the two will crossover. Despite the previous growth of blu brand, its market share has fallen as a result of more competition within the space.

Both Reynolds and Altria (NYSE:MO) rolled out their own ecig brands with the addition of Vuse and Mark Ten, but this may not be the only reason for the rapid decline. As noted in a more recent Wells Fargo study, the overall appeal of ecigarettes valentino shoes has diminished and smokers are looking for an alternative product that will offer both customizability and more choices. Analysts from Wells found that ecig convenience store sales declined by 5.3% in the period ending 8/30/14:

Though category $ sales remain negative, the decline continued to moderate this period; we believe improved sequential category results since July have been underpinned by the ongoing national rollouts of MarkTen and Vuse. Further, we believe the sales decline is more reflective of volume moving to vaporstanksmods (vtm's) which tend to be sold in nontracked channels (especially vape shops) as Nielsen ecig data is not a proxy for http://www.vougers.com/valentino-c-127/ the vapor category as a whole.

Many retailers have expressed that consumers have tried ecigs and are either not content with the product or simply shifted to personal vaporizer products. Convenience stores, for example, rank as one of the largest marketplaces for ecig sales ($530 million) but vaporizers have quickly begun taking up more shelf space and spots for point of sale advertising. Bonnie Herzog of Wells Fargo thinks that the first quarter of 2014 is where the industry started to really see the vapor trend gain a foothold and drive the combustible cig and ecig decline rate at an accelerated pace:

Bottom line, retailers are starting to either discontinue or take shelf space away from disposable ecigs to make room for personal vaporizers given their attractive growth margins.


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