Although there has been varied reaction to vaping, the vape sector is taking off worldwide, and in New Zealand this has heralded an era of opportunity for ambitious retailers.
Chief among them is Naresh Murugarajan, Founder and Director of Retail Operations at Vapeys Vape Store. With a keen eye on what was beginning to trend in New Zealand’s retail market, Naresh took the initiative to break into the market, eventually becoming one of the leaders of the vape sector.
Vapeys Vape Store aren’t blowing smoke, the business embodies the true spirit of entrepreneurship.
Breaking into the vape market, before it was cool
It was in 2010 when Naresh first saw opportunity in the market. At the time Naresh already owned several convenience stores, where he began to see an uptake in vape interest.
“The e-cigarette started making the buzz”
Reflecting on those early years, Naresh says that global trends indicated to him that vape products were soon going to be a big deal. “The e-cigarette started making the buzz where it was turning into a tool that people used to quit smoking. So it was starting to boom more around the United States”.
“Then the UK had a very good take up and usually what happens in the western world flows through. So we saw the trend picking up there. We definitely saw a future there based on what was happening across the world”.
Moving quickly to address scarcity in New Zealand’s market
With vape availability in New Zealand relatively scarce at the time, Naresh moved quickly to begin importing products from overseas, with things beginning to pick up through 2012 and 2013.
“My business partners and I used to run these convenience stores where we saw a bit of early market there and we saw the future for the product.
“We used to buy the single Cigalike which we started importing from the UK. That’s how we got known to the market. Then there was a stage where we partnered with a local manufacturer to distribute their product into the FMCG channels, like gas stations and convenience store locations.”
“And that’s where the expansion happened and from there retail was always the goal on the back of continuing this.”
A human touch propels Vapeys to the top
With an agile methodology and keen attention to what was happening in the market, Vapeys Vape Store was off to a flying start. But being an early actor in the vape boom wouldn’t be enough, they had to establish a clear UVP (unique value proposition) to grow beyond the initial excitement.
Faced with this, Naresh focused on going above and beyond when it came to customer service. In fact, their dedication to customer service made the team quite thorough when it came to hiring staff because they had to ensure the entire staff shared that customer obsession.
“We’ve been sort of always like an underdog challenger I would say right from day one”.
“We’ve built up a brand value where we’ve been known for the best service within the industry. From day one we’ve invested a lot in our customer-centric operation. Whether it came down to training and passing knowledge to the staff. We were very picky on whom we hired”.
Personalising service with loyalty program
By implementing a loyalty program, Naresh could nurture a loyal customer base keeping detailed customer information in their Lightspeed POS. Having more personalised conversations with each customer is something Naresh firmly believes makes a huge difference.
“I think that’s the key essence of our success. We do small things to make the day for our customers; from pronouncing their names right to recalling the conversation that you had last time.”
“I think that’s what retail is all about”
“I think that’s why retailers are learning that human touch really matters. When online platforms started booming they said that it’s it’s end of in-store retail but I think retailers are still sustaining because of the human touch”.
With Vapeys on track to have 20 stores by 2024, effectively positioning Vapeys as one of the three largest vape retailers in New Zealand, these efforts are not for nought.
New Zealand’s cigarette ban may open up even more opportunity
In 2022, the New Zealand government passed a bill restricting younger people’s access to tobacco in a bid to phase tobacco use out of the population. With a seismic shift for tobacco, Naresh believes this is a great opportunity for the vape market.
“Just before the announcement there were…about 400 stores in the country. Now there’s more than 1,200.”
“Customer behaviour has changed quite a bit. I think that’s actually boosted the industry a bit as well. I would say as soon as the announcement came last year, a lot of these smaller local stores started changing and adopting a vape store model within their stores. We have seen a lot popping up. Just before the announcement there were about, I think close to about 400 stores in the country. Now there’s more than 1,200, that’s within a year and the growth has been massive”.
From challenger brand to market leader
Vapeys Vape Store are going from strength to strength. Guided by their agile thinking and investing in customer service Vapeys is now positioned to grow their market share and revenue as the vape market continues to take off.
Vapeys Vape Store are utilising Lightspeed’s retail POS to manage their network of stores and support their growth. Read the case study to learn how they’re leveraging Lightspeed.
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