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Industry Analysis
Cigars
Principle Characteristics
Seasonal Fluctuations
Since Canada is known to have its wonderful long winters we are expecting to have more sales during this time. Reason being, people like to be indoors where it is warm and be to relaxed during the harsh weather conditions. In the summer months however, people tend to spend there time in the outdoors because we have little time to enjoy the weather and everyone wants to take advantage of the warm short months. Therefore sales during this time will not be as good.
Major Participants
Competition
Through research we have found that there are a few cigar lounges in Toronto. T Although there is competition we feel that the cigar smoking market is a vast and lucrative business. There are also cigar retailers exclusively selling cigars; however they have a very small lounge area, not enough to be called a "lounge". From this, we benefit because our target market are cigar enthusiasts and they appreciate a relaxing environment where they can enjoy a true, rich cigar along with beverages and entertainment. Comfort is very important for us and that is what will differentiate our venue from others. People will want to come in and enjoy the time they will spend in our lounge.
Industry Trends
Influencing Factors
Although establishments have to be smoke-free as of January 004, the cigar industry has been booming in the past years due to unprecedented publicity from celebrities, and the media. Decades earlier, the majority of people smoking cigars were 40-70 year old men, and now, we are seeing younger men and women joining the bandwagon. Trends have changed recently as well. There was a 14.6 percent sales jump in 14, followed by a 1 percent rise in 15. In 16, sales of premiums, hand-rolled cigars jumped 67 percent. In 17, they leapt another 0 percent.
There is also a perception that cigar smokers are highly educated, whereas cigarette smokers are not as much. The idea of cigars exudes luxury and wisdom, which is why it has been attracting the public's attention. Cigar smoking is viewed as a reward or a "want", not a need, just like alcohol; this is true for any form of entertainment. They both have serious health risks added, but then again, everything in this world is a health risk. The effects of cigar and cigarette smoking do not change, however, cigars are more natural, and are not produced with as many additives as cigarettes.
Forecasting
The demand for cigars has recently begun increasing because society has learned to tolerate this custom. The trend of younger smokers is being widely spread, and since they have long to live than their older counterparts, they will be smoking for a longer period of time. Many suppliers are unable to match the demands, and many buyers bid well beyond the reasonable prices for these cigars. This will be a driving force to keep the cigar industry booming well into the future. The fact is that it takes years from the time a seed is planted until it should be used on a cigar and 6-1 months to train a cigar maker to make 00 average size cigars a day.
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