RE: Share price = £16 Nov 2021 20:11
Hi DRB83
Just a bit of fun really, assuming Covid etc continues to cause havoc , maybe online is the way to go.
So what if CHILL changed their strategy and hit online hard, and let retail follow in its own time.
I really like the replacement smoking market, and the growing CBD users market ....more than the Deluxe Brand market. Why. Because smokers / ex smokers buy daily, its a habit that if replaced with say a vape, they will continue doing for life ( most) and these customers make sure they have the money they can afford to support their habit.
Smoking customer are a different kind of breed to your average customer, due to habits , and are certainly buy much more regularly than those interested in Brand and lifestyle only.
Imagine if CHILL set up an online club where ex smokers, and also those who wanted to stop smoking, maybe CBD users or Menthol smokers etc etc could buy healthier no T&N cigarettes at discount prices at say $7 a pack.
Out of the 38 million current smokers in the US if CHILL had a target of only just 10,000 loyal customers , who paid weekly / monthly standing debit, and then received a monthly delivery of say one or two boxes a day in bulk, each month plus maybe discounts on other CHILL products and competitions etc , maybe extra discounts on other allied products etc etc .
10,000 x $7 (10 smokes daily )1 box) x 30 = $2.1 m a month / 25m PA gross.
10,000 x $14 ( 20 smokes daily ) 2 box , x30 = $4.2 a month / / $50m PA gross.
For fun and to give some idea what 10,000 customers looks like as a percentage of the existing 38 million smokers in US.
38,000 customers is 0.01% of exiting smokers in US which, if members to the club would generate over $89 million PA gross at one pack a day, online. This hard group could be used in future to test out new flavours, new products etc.
The retail rollout / development could build out at the same time but with less urgency.
like i say , just fun and musing, but with the right partnerships online CHILL could build up a rather important customer base of regular users. Maybe that's what the new CHILL domain is about , but i get the feeling CHILL is about lifestyle, and aspirations of relation rather than finding the millions of smokers & ex smokers who are looking for that ideal tobacco substitute at the right price.
Most smokers i know these days do not hang out around horses, or in mountains, and usually congregate outside their place of work or a pub / club. Its obviously different in the US :)
Sign In
Follow the stocks
