Although major companies have had a long history in the tobacco industry, upcoming companies such as O2Pur are getting a sizeable share of the electronic cigarettes market.
They have innovative products able to compete favorably with those from established companies. They have also marketed themselves aggressively to create a name for themselves in the market.
O2Pur e-cigs and vapors are pleasantly flavored and priced competitively. They are also convenient to use, making them acceptable to customers of all ages and social backgrounds.
Investing in such a company makes business sense since it already has a customer base, and there is increased demand for its products. Market trends indicate that these products will continue to be sought, as more people abandon traditional cigarettes.
Philip Morris was among the best performing e-cigarette manufactures on the NYSE in 2017. Trading under the Marlboro Brand, the company has its e-cig brand.
Their e-cig is close to the traditional cigarettes. Something similar to a cigarette is inserted into the e-cig device giving the user a near smoking experience.
This has endeared it to users who do not want a total shift in their smoking experience, more so because it uses tobacco and not a liquid as most e-cigs do. That popularity played out in the performance of the company stocks on the NYSE.
The firm is waiting to receive approval for its e-cig. If it is approved, emerging firms like O2Pur will stand to benefit because people’s perception of electronic cigarettes will change for better. The e-cigarettes will be more accepted, and their demand will increase.
A company such as O2Pur is constrained from applying for FDA approval of its products because the process is prohibitive for an upcoming firm.
When an established company like Philip Morris applies and gets the nod from FDA, the whole industry stands to benefit.