As a result of Covid-19, businesses worldwide are urgently finding new ways to pivot, evolve, and survive the current economic state. With unemployment up and consumerism down across most industries, a market is a place of hesitation and instability. The remarkable thing about all of this, though, is that we are seeing innovative and forward-thinking leaders find resourceful, lean, and unorthodox ways to restructure how things have historically been done. From a global perspective, the pandemic has showcased just how much we rely on international production and manufacturing, the current constraints of world-wide shipping, and how important it is to shop locally - to sustain local and start-up businesses. As companies seek to decrease costs and increase efficiencies, they must also keep sustainability efforts and new health and safety regulations of equally high priority when re-thinking their strategy. Because of this, various trade wars around the world have led many decision-makers to rethink the way they approach their manufacturing and supply chain.
For example, about 90% of the world's vaping and e-cigarette devices are designed and manufactured by about 1,000 factories throughout Shenzhen, a city just north of Hong Kong. Thousands of more companies form the supply chain throughout Guangdong province and China. This has been the long-standing business model within China's vaping industry, which has allowed for self-reliance and a greater deal of control throughout all aspects of their business; by consolidating their volume and commodity. This also means that they are the only domestic and international source for vape products and accessories.
But now, forward-thinking companies like SnowPlus have begun to re-allocate certain aspects of production by setting up shop here in Canada - and their newly confirmed partnership with Canadian manufacturing company Dvine Laboratories, has landed their first North American outpost in Lindsay, Ontario. This shift makes sense for them as localization has become an important part of their growth strategy. They no longer have to rely on one region or producer to be responsible for their production needs.
With the way that business is going right now, there's a growing appeal in decentralizing large conglomerates with historically monopolized home-grown manufacturing opportunities. While some businesses might not see the benefits of localizing the vaping industry quite yet, SnowPlus is looking forward to developing outposts as extensions of their brand. This means that production is based on location and proximity, so vapes sold in Canada will be partially produced here in Canada, and the same product that sells in China will be made in China. The advantages of localization include but are not limited to:
- a competitive advantage to reach customers with a unique, local experience
- Tailored offerings for every market or region
- Having a better handle on your supply chain
While not all industries can adapt to this way of thinking overnight, startups like SnowPlus celebrate an innovative strategy and have begun to take this concept and run with it. SnowPlus has embraced the idea of 'localization' not only because it will help create jobs here in Canada but also aids in building long-lasting relationships and roots as an international company. It's a promising shift in business mentality to see that a relatively new startup in the vape space is considering this approach. SnowPlus striking this international partnership offers them peace of mind and high-quality consistency, seeing that Dvine Laboratories was the first in Canada to apply & maintain ISO certifications in quality management and lab testing in the eliquid space.
"We're thrilled to have a partner like SnowPlus. Not only are they as committed to quality standards as we are, but they also share in our values of giving back to the communities we serve. This partnership will create more jobs for Canadians and opportunities for small business owners", stated Nick Paparamborda, VP of Sales at Dvine Laboratories.
SnowPlus and Dvine Laboratories have established that e-liquid for Canadian vapes will be produced in Canada. The pods will be filled here, and final assembly and packaging will also be completed here. This ensures that product output is consistent with our government specifications and testing standards. The result is a Canadian vetted product that can be purchased locally.
Brad Jemmett, General Manager of SnowPlus Canada says, "We are incredibly excited to partner with Dvine Laboratories to have SnowPlus products manufactured in Canada under the stringent standards of quality. Having a trusted local manufacturing partner will not only improve our supply chain but also allow SnowPlus to offer premium quality e-Liquids made by Canadians, for Canadian adult vapers."
For an overseas company like SnowPlus, these international outposts mean that they are able to build a bridge between themselves and their customers by integrating not just as a marketable consumer packaged goods, but also as an asset to the markets they belong to. This in turn, strengthens brand awareness, product integrity and overall affinity through local ties within the industry.
We will no doubt continue to see all industries explore new ways to generate revenue and expand their visibility within markets that matter most to them. As we continue to see a decrease in brick-and-mortar, digital automation and tailored market strategy will become a significant component of how companies gain valuable insights about their consumers. The natural evolution of this means that localization is the operational solution for production and inventory needs. Ultimately, most businesses are in the market for longevity - and creating global partnerships of this scale may be the only way to ensure this.