Premium eliquids distribution in CIS

20 june 2015 yo@babylonvape.ru

What are premium eliquids in US?first top 20 brands entered the market since 2010

complex and unique flavors (>5 aromas, or VCT)

not standard packaging

RRP > 25$/30 ml

examples: 5pawns, Ripe vapes, SMAX, SB, etc.

What are premium eliquids in CIS?not Chinise eliquids

RRP > 15$/30 ml

not CIS made juices / not “kitchen made”2

Good to great

local testing team with vaping experience (tested > 500 brands)

$ in turnover and re-stocking “in time”

be the first on the market (exclusive distro agreements)

good pricing policy (2-3 levels of agents)

good sales and CRM team (10+ specialists)

”white papers”

analytical equipment (NO diacetyl, acetyl propionyl or acetoin, WTA, ONLY USP components + lab)

factory assessment (no “juices”!)3

Dream testing team

5-10+ vape professionals (chemical, food, medical experience)

every new taste should make and add-value to the product line

targeting different market niches

international expo participation

new samples testing > 3-5 brands / week

1 of 20 is the star4

Need more cash?

CAGR in CIS > 30%

DYNAMICS - 15% of positions changed every month

NO PLANS - new clients growth is unexpected

NO DEBTS - young industry can not be leveraged

every 1$ of sales need 2$ of investments in inventory

5

In the big family don't клювом “клац-клац”*need time for first orders to check the market

only large orders = good price

clear market rules for distro (prices open to public)

no competition (local wholesale price < to buy directly)

$ for brand intro to the market

Exclusive agreements to protect the rights

6*It’s the early bird that gets the worm

Multi level motivation

average retail margin 60-100%

3-4 levels of pricing policy to get 10-30% between each level

K (retail/lowest wholesale) = 2-3

fixed RRP bottom price control

Only clear market with strict control

7

Born to be wild

MSDS and other certs

import taxes, VAT, official procedures

local certification and USP grade check

local package sales requirements

18+ sales

Clients can “sleep safe”8

Know your product

specific certificates from suppliers

should know the owner and see the real production process (f*cking KARMA!)

analytical equipment

real CIS lab tests

9

+Local staff

-PR

-clients

-production

10

Keep to the roots

local testing team

$ in turnover

exclusive distro agreements

good pricing policy

CRM team

”white papers”

analytical equipment

no “juices”!11

So who is on top in CIS?

12

real nigga shit

working hard

brands

no moneyno honey shot

/ 30 ml

NEVER

GET

BURN

yo@babylonvape.ru