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Indonesia Vaping News

Time: 2023-08-04

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Low market value in Indonesia? Many brands at the IECIE exhibition did not launch new products for this market

On August 3, the IEICE Electronic Cigarette Exhibition in Jakarta, Indonesia officially opened. As the official cooperative media of this IECIE, Two Supremes visited many booths and conducted random interviews. Most of the interviewed brand owners said that they did not prepare new products specifically for the Indonesian market, and their exhibits were either global standard products or products from a certain market.


 


Amy, general manager of SONG International Sales Center, an e-cigarette brand under Xiaosong, said that the exhibits are all global standards, and there is no special product for a single market. As a new brand, SONG's market development in Indonesia mainly utilizes its parent company's warehouses and channels in the field of home appliances.


 


The brand Freeton did not make products specifically for the Indonesian market, but launched it for the entire Southeast Asian market. Its large-scale products with screens have been released. Jing Ye, director of the Malay market of lanavape, said that the exhibited products are mainly from the Malaysian market, but the appearance of the products is specially designed for the Indonesian market.


 


The local Russian brand Brusko has just entered the Indonesian market, and its products have not yet been sold at the retail end. Brusko emphasizes the global strategy of its brand and will not conduct research and development for a single market. There are more than 60 flavors of Brusko products, some of which will be selected and put directly on the Indonesian market.


 


Low market value in Indonesia? Many brands at the IECIE exhibition did not launch new products for this market

A group photo of Two Supreme staff (left) and BRUSKO booth staff (right 1, right 2) at the IECIE exhibition site|Source: Two Supreme

 


Behind the lack of specially designed products is the uncertainty of the development of the market, and many brands are still in the wait-and-see and exploration stage.


 


Jonathan, a senior local e-cigarette practitioner, said that the Indonesian government’s local protection policy is serious, and the high taxation of disposable products has increased the terminal price. However, Indonesia’s local consumption level is low, so there is a lot of resistance to sales. Eric, a staff member of Chillax, said that Indonesia has a lot of taxes and fees, local e-liquid companies are strong, and (bottled) e-liquid taxes are extremely low. In contrast, the taxes and fees of closed electronic cigarettes are expensive, and it is conceivable that the development of disposable products in the Indonesian market is difficult.


 


Disposable electronic cigarettes are the mainstream product type in the global electronic cigarette market. The Indonesian market is still dominated by open electronic cigarettes. The hysteresis of its product form will not only affect the development process of the Indonesian electronic cigarette market, but also make brand owners push new products. enthusiasm is frustrated.


 


But there are also brands that have just entered the Indonesian market and are full of confidence in their future development. The staff of Brusko think that the current Indonesian market is very similar to the Russian market three years ago. As a mature brand, they can clearly see the future direction of the industry, so they are very confident in the Indonesian market, and the same is true for the Southeast Asian market. Lanavape also said that there is a large gap between the rich and the poor in the Indonesian market, and there is a market for disposable and refillable electronic cigarettes, but it still needs to be discovered.



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