Vapor Group Inc (VPOR)

[SooS416]

Since I have started following VPOR they have done everything to build brand awareness. Everyone states how can one compete in an industry as saturated as e-cigs, well just like any other crowded industry be the brand leader. I think the retail stores is just another step in the process of being the brand leader.

Also, I believe the retail stores will serve as a base for their online monthly subscription service. The stores will allow for faster shipping and response times as they can be closer to the customer. And having a retail front can act as marketing for the program by allowing potential customers to come into a store and test the product out then signing up for the mail order program.

Additionally, traditional e-cigs like blu, njoy, mcig are not the vapor groups competition. The Vapor group is in the Vaporizer and e-juice market. Traditional e-cigs will go by the wayside very quickly as their sole purpose is to provide a familiar experience to that of a regular cig. Typically, once people get past the initial intimidation of a true vaporizer they can see that it is better from a cost and consumer choice perspective.

With that, VPOR is positioned perfectly. I hear people questioning their presence in gas stations and conv stores. As stated above the gas stations will eventually transition away from e-cigs as the trend moves to vaporizers. They will then sell e-juice as this stores will not likely carry the more expensive vape devices. Consumers tend not to want to purchase $30-$100 devices from a gas station. This then lends itself back to VPOR's store fronts that will be the go to retail place for the vaporizers.

All in all, they seem to be doing the right things to not only build the business through increase revenues but by building a brand. This does not mean they will succeed but they are at least making the right moves.