We often hear about the cut throat industry of electronic cigarettes. Five years ago, dozens of e cigarette companies were sprouting up each and every day. It got so large that until about two years ago, everyone thought this was the end of “new business” in this industry. There were already hundreds of online and offline vapour shops across the UK. Could the market really handle one more competitor?
With the push of a button signing of some documents, all of a sudden Big Tobacco made its entrance into the world of e cigs UK roughly two years ago. Just when we thought there was no more room for growth, BOOM! This move was considered, at the time, to be the death of smaller e cig businesses, and rightly so. How could anyone possibly compete with the deep pockets of Big Tobacco (Lorillard, Altria, etc.). Furthermore, within the past two years, there have been a few surveys showing that e cigarette business in the UK is stagnant at best (though we refute these claims vehemently), and declining rapidly at worst. Nevertheless, one entrepreneur decided to enter this heavily saturated market.
David Extance was a tobacco cigarette smoker for quite some time. However, in November of 2013, he decided to do what many smokers in the UK have done: he switched to electronic cigarettes. While e cigarette brands are unable to market their products as a smoking cessation device, Mr. Extance knew perfectly well why he made the change to e cigs: to quit smoking. He was successful, as he currently no longer smokes tobacco cigarettes.
Due to the unbelievable results, Mr. Extance thought like any businessman would: why can’t I be a part of this market that delivers “game changing” technology to people at health risk? After all, there are over 2 million e cigarette UK users, while 10 million overall smoke regular tobacco cigarettes. Clearly, the potential is still massive, even though 20% of smokers have already made the switch. Mr. Extance went on to say about the growth, “It really is a growth market and here we can do it efficiently and to the highest standard with the facilities we have.”
He immediately realised the potential and got to work. He opened up his own manufacturing plant which produces e-liquids. In just a few months, his e-liquid manufacturing business has gone from nothing to being a worldwide company that has a six figure turnover. Moreover, the company can produce up to 25,000 e-liquid bottle – quite an impressive feat within one year’s time.
Seeing a story like this is downright incredible. Mr. Extance clearly has guts! In a market that was considered highly saturated even before Big Tobacco showed up, why would anyone think of opening an e cig business? The “icing on the cake” really was the entrance of Big Tobacco. Almost no one has tried to start a new e cig business. It is suicide…or so we thought. Mr. Extance claims he is doing quite well in regard to purchases. “We are getting new orders in every week and it is really taking off for us,” he said.
Congratulations David Extance! Well done and very well executed!