Geek Bar’s major competitors_geek-bar-pulse_GeekBarVape
모모Mergers and acquisitions in Internet companies are quite common. For example밃 Didi밃 which won the taxi war밃 has successively completed mergers and acquisitions with Kuaidi and Uber China. Because the investors behind these taxi companies overlap to a large extent밃 and the money burned by subsidies is the money of these investors밃 so investors promote such mergers and acquisitions밑 Meituan and Dianpings mergers and acquisitions are similar.For these reasons, I think GeekBarVape The situation is still optimistic, and the market is still in a blue ocean stage. https://www.geek-bar-vape.us/
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모모So will there be such investor-driven acquisitions or mergers in the e-cigarette industry? It is possible밃 but not many. First of all밃 Relxs investors may not be so willing to do so밃 because these investors have basically reached the harvest period. Moreover밃 there are not many VCs that invest in several different e-cigarette brands밃 and investors do not hold many shares in each brand.
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모모So밃 if RELX wants to launch acquisitions or mergers of other e-cigarette brands at this time밃 it must be to make up for its own shortcomings in some aspects. Lets look at the following aspects: R&D밃 production밃 channels밃 marketing밃 e-liquid밃 background밃 etc. to see which brand will fall within this target range.
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모모1. R&D: Smoore밃 MOTI밃 VITA
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모모First밃 Smoores R&D and production capabilities are obvious to all in the industry밃 but acquisition or merger is basically an impossible task (at least within three to five years밃 this possibility is extremely small)밑
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모모Second밃 the founder of MOTI is more capable in products than RELX. From the current information밃 MOTI has obtained US$91 million in financing (divided into three installments of 10 million밃 31 million and 50 million). There was no news of its financing in 2020밃 but MOTI announced a RMB 1 billion store opening subsidy plan in 2021. MOTI밃 at least on the surface밃 is not short of money. For a founder밃 being able to operate independently is much better than being acquired or merged.
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모모Finally밃 VITAVPs cotton core is the first in China밃 and it is not easy to make a good cotton core. We all know that Relx has been using Smoores FEELM ceramic core before밃 so Vita can complement Relx to a certain extent밑 although Relx recently launched the cotton core cartridge Relx soft mist cartridge밃 it has not yet been verified by the market. The financing information currently available to Vita is 10 million yuan from Pusi Capital in 2019.
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모모2. Production: Smoore밃 FLOW밃 Vita
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모모The first to be excluded is Smoore. Next is FLOW and VITAVP밃 both of which have their own factories. Therefore밃 these two companies have the fastest response speed to market feedback. Relxs previous production capacity was limited밃 after all밃 Smoores production orders were scheduled for several months. When Relx has its own factory밃 its dependence on Smoore will be reduced.
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모모3. Channel: MODI밃 YUZI
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모모From a personal perspective밃 the possibility of mergers and acquisitions due to channel reasons is relatively small. Because Relxs channel and distribution network may be the most complete in the current domestic e-cigarette market밃 and the channels between these brands also overlap to a large extent. But MODIs channels are not only in China밃 but also in foreign markets.
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모모4. Marketing: Yuzu밃 Vita밃 Fulu
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모모Compared with SMOK밃 VOOPOO밃 IJOY밃 Joyetech and other e-cigarette brands that do business in foreign markets밃 e-cigarette brands that focus on the domestic market are extremely powerful in marketing. Of course밃 this is inseparable from the fact that the founders of these e-cigarette brands are basically former Internet practitioners or entrepreneurs. Compared with poaching people밃 the cost of acquiring or merging a company is obvious at a glance.
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모모5. E-liquid: Boton밃 Bode
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모모Boton and Bode밃 the two e-liquid giants밃 are basically impossible to be acquired or acquired. It is not impossible that there may be a potential e-liquid brand in the market that is favored by RELX. The main cost of the cartridge is the core and the e-liquid. If the e-liquid can be controlled in ones own hands밃 it is an extremely effective way to reduce costs and increase profits.
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모모6. Background: Lami and other traditional tobacco investment companies
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모모Companies like Lami밃 which are backed by traditional tobacco밃 are not short of money at all. Then밃 the possibility of being acquired or merged is very small.
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모모In summary밃 Weita and Fulu are more likely to be acquired or merged. Of course밃 these are personal opinions and are for reference only. If you were the operator of RELX밃 which target would you acquire?