“At first there was an issue in some malls, a handful probably,” says Kevin. “The majority are fine with it and feel it adds value.” In fact, GGP, Simon and Westfield have approved Vapor Corps.’ products, and the demonstrations thereof, in their shopping centers, “subject to the very few jurisdictions—mostly counties—that restrict the public, indoor use of electronic cigarettes,” says Adam. “As soon as mall management becomes aware of a product


with hype behind it, they are quick to want it,” says Adam. Couple that with the fact the company already had many established relationships through InGear’s Kariza, and developers eagerly hopped on board.


cartridges to change, leaving residue on fingers, making for an unpleasant experience. But most important, Vapor Corp. works hard to deliver an


authentic smoking experience. Kevin points out that Fifty-One is the same shape, color and size as a tobacco cigarette. Competitor brands, he says, often feel like "plastic gadgetry" between smokers' fingers. The tips of Fifty-One cigarettes even have a bright LED that


lights up when a smoker inhales, replicating the effect of a burning cigarette. And by use of propylene glycol, smokers exhale a dense vapor, also similar to a traditional smoking experience. “Additionally, we pride ourselves in our portfolio of products,”


says Markx, having recently introduced accessories, lighters, key chains and pens, to take the concept a bit farther. “Offering products at all different price points, and brands which cover all demographical interests, Vapor Corp. has positioned itself as the leader in electronic cigarettes,” he adds.


Where there’s smoke While many smokers have heard about electronic cigarettes, they haven’t had the opportunity to try them. This is where specialty retail comes in: the common area offers them just the place. The key is in hiring operators who smoke. Think a smoking demo is unheard of in the common area? Think again. And that’s the beauty of it. Smoking grabs attention, especially because it is unseen in public places these days. “As many carts are positioned within indoor facilities, this


product truly demonstrates itself as a ‘smoke anywhere’ device. We encourage cart operators to smoke the e-cig at their cart to gain attention, which leads to inquiry, which converts to sales,” says Markx. “The cart model is a valuable education tool. They have central locations in malls and reach a tremendous amount of people/traffic,” he adds.


62 Specialty Retail Report n Winter 2011


A pack of support To get up and running, the tab for retailers is approximately $5,000 which includes support every breath of the way. Typically a kiosk will start with 100 kits, 150 packs of replacement cartridges and an assortment of accessories, including chargers. “We have sales training, displays, signs and videos. We coach operators on sales techniques,” says Kevin. In-depth customer service and sales training can take place in person or through phone video conference. Vapor Corp. encourages retailers to create as much visual


interest as possible. There should be at least one large, flat- screen TV playing the Vapor Corp. DVD and four to seven different signs with different catch phrases to grab customers’ attention, such as “No Smoking.” The DVDs feature a four- minute testimonial and two-minute instructional video. Taster caps, which are small rubber caps for placement on


filters, are also available. This way several people can try the product on a single filter, says Kevin. You simply throw away the taster cap at the end of each customer trial. Vapor Corp. offers its retailers an online incentive to stock


their brands as well. Many times customers come to the mall, try the product, and then place their refill orders online. To compensate for this, Vapor Corp. introduced a program where retailers can set up their own website, or give their customers retailer-specific coupon codes to use, so when ordering online, retailers receive 30-50% of the sale, says Kevin. Supporting their retailers and building upon their success,


Vapor Corp. is poised for growth. “We intend to focus on distribution. Big tobacco has a tremendous lead on us and our focus is to work towards closing that gap,” says Kevin. “Electronic cigarettes will prove to be disruptive to traditional cigarettes. It is what the calculator was to the abacus.”


Emily Lambert is a senior writer for Specialty Retail Report. She resides in Philadelphia, PA and can be reached at emilylambert@comcast.net.


SpecialtyRetail.com


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