Tobacco is a popular commodity that has a long, long history. But still, have millions of fan all over the words. Even today, the vape(E-cigarette) is becoming the new favorite， tobacco still owns its prominent position. Do you want to open a tobacconist? Good news, this article contains tips to help you get your project done in a highly regulated industry, including tips for writing a tobacco store business plan and ideas to start an E-cigarette kiosk in the mall. 

#1. Market Research 

The first step in opening a tobacconist is to carry out a market study at the implantation area level to verify the commercial viability of your project.

To conduct the market research for your tobacco shop, you will need to look at current trends in the industry and perform a thorough local competitive analysis to verify that there is sufficient demand for a new entrant to the market. Market.

vape store counter

#2. The US tobacco trade market

Conjuncture

Today there are 16 million smokers in the USA, the tobacco market is therefore significant, but it is also a threatened market.

Since the Evin law, many anti-smoking measures have been taken: information campaigns on the risks run by smokers on their health, ban on smoking in public places, restriction of tobacco advertising, etc.

As a result, tobacco consumption tends to decrease in France, which affects tobacco volume turnover.

In addition, the significant increase in the price of tobacco, due to fiscal measures taken by the government, favors the development of new supply channels that compete with tobacco outlets, such as cross-border purchases, smuggling, and sales. Online.

The establishment of "contracts for the future," established between the state and professionals in the sector, offers a system of compensation for the loss of commissions received on tobacco sales. However, this is not enough to stop the decrease in the number of tobacconists, which were just over 25,000 in France at the start of 2016.

However, the increases in the price of the package imposed by the manufacturers have made it possible to maintain the sector's turnover in value, around 18.1 billion euros.

Find More: Luxury Vape Store Design with Attractive Display Stands!

Future trends in the USA tobacco market

Tobacco sales are set to continue to decline due to growing concerns about its harmful effects on health, the decline in household purchasing power, and the development of electronic cigarettes.

Therefore, before opening a tobacco store, it may be wise to consider diversifying the point of sale activity so as not to depend exclusively on cigarette sales that are declining.

Some aspects of the regulation of tobacco shops

The sale of tobacco is a sector whose access remains highly regulated. Indeed, the sale of tobacco is a state monopoly (established by the decree of 29.11.1810 and arranged by law 76-448 of 24.05.1976) which binds the tobacconist to the administration of customs and indirect rights, for 3-year contracts, tacitly renewable.

There are many conditions to be met to become a tobacconist :

  • be of legal age and not be under tutorship (or curatorship),
  • be of French nationality, or be a national of a country in the European Economic Area (EEA) or Switzerland,
  • present guarantees of good repute and integrity (in particular a clean criminal record),
  • enjoy their civic rights,
  • have a medical certificate to prove their physical fitness,
  • not be associated with any other tobacco outlet,
  • follow initial and continuing vocational training.

Before signing the management contract, it is necessary to undergo initial professional training. Then, a refresher course is compulsory every 3 years.

The management of a tobacco shop is also subject to many rules:

  • The tobacco shop must be open at least 6 days a week.
  • The ban on the sale of tobacco to minors under the age of 18 (stipulated since March 2009) must be scrupulously respected.
  • Tobacco must be sold at a price indicated in the Official Journal.
  • The installation of a tobacco shop is prohibited in certain protected areas.
  • The managers of a tobacco shop must fulfill specific missions of public interest, such as the sale of postage and fiscal stamps.
  • Buy Custom Store Fixtures For Your Retail Store.

#3. Choosing a tobacconist's idea

Once the market research is done, it is essential to consider the type of tobacconist you want to open.

Among the 25,115 tobacconists present in France, we can distinguish two large groups:

  • Cafés-Tabacs represent 57% of the business and are mainly located in rural areas. They must obtain the IV license and meet the obligations related to drinking establishments and meet regulatory requirements related to the tobacco establishment.
  • Tobacco shops represent 33% of the sector. More and more of them are diversifying, selling newspapers, phone cards, French games, scratch games, gifts, electronic cigarettes, etc.

#4. Finding a location for your tobacco shop

Pure tobacco shop creations remain rare, even though the creation freeze has been repealed. The establishment of a new tobacco store is decided by the DRDDI (Regional Directorate of Customs and Indirect Rights). It is provided primarily by transfer, then by a call for candidates.

Taking over a tobacco shop is much more common but must also be accepted by the DRDDI, which appreciates its economic viability. The prices for such a transfer are high and depend mainly on the location of the tobacconist, its attendance, and the amount of rent.

#5. Choice of the legal structure of your tobacco shop

After finding your future tobacco shop location, deciding on its legal status is another essential step. It is indeed a crucial choice that will influence your method of taxation, your social system, and your responsibility concerning the debts of the company.

Again, the possible legal statuses for a tobacco shop are strictly regulated; you can get more information on the Public Service website.

#6. The marketing plan of a tobacco shop

The marketing plan of your tobacco shop is essential to help you promote your business and retain customers.

Marketing strategies will largely depend on the type of target clientele: street marketing operations for a tobacconist located in the city, opening night for a café-back in the countryside, etc. Please note: many strict rules are governing the advertising of tobacco sales.

#7. The staff and stock needs

When opening a tobacco shop, the most critical initial investment is often the purchase of goodwill. Security systems are also expensive but essential due to commonplace burglaries. Note: the DRDDI grants a security subsidy.

It is often necessary to call on an accountant to help you in the management and repay the various taxes to the tax authorities. You will also need to take out several insurance policies to protect yourself against the risks associated with your activity.

#8. The business plan of a tobacco shop

An essential document to create a tobacco shop, the main objective of the business plan is to allow you to validate the project's financial viability.

The business plan of a tobacco shop also allows you to present the project to your bank in a structured way by highlighting its financing needs, its potential for profitability and its strong points.

#9. Buy Store Fixtures for your tobacco store

When you finished all the paperwork and necessary documents, you need to focus on creating a fantastic store; after all, only the client has a good shopping experience, they will buy for a second time.  

The retail store design is the first step to creating a tobacco store; from the 3D design, you can figure out the right fixtures and display showcases that you want and find out if it is the best way to display products for both staff and customers. 

Ant Display is a leading store fixture manufacture that focuses on customized shopfitting; whether you are looking for a tower display showcase or wooden reception desk, you will find your perfect fixture here; contact our team today to get your shop furniture build most effectively and economically. 

#10. The search for funding to set up a tobacco shop

Once your business plan is complete, it's time to take the last step in building a tobacco shop: fundraising.

To get the funds for a tobacco shop, evaluating the selling price is made according to the turnover achieved. If you have decided to open a tobacco press office, you must distinguish between the different branches of activity. It takes 3 years of net discounts for the tobacco activity and 2 to 3 times the net commissions for the press activity.

Would you like to know how to open a tobacconist? We hope you have answered your questions with this article. Please let us know if you have any questions.