【By 2Firsts】Stepping into the World Vape Show in Dubai, a variety of new e-cigarette products are on display, with innovative designs and features being the highlight at each booth. However, at the booth of the Malaysian e-cigarette brand ASDF, their iconic "retro cassette tape" design seems to have never changed.
This Malaysian brand, established in 2022, quickly grew to become one of the top players in the Malaysian market after the release of its first product due to its highly recognizable visual language and localized flavor profiles.
However, market competition and regulatory challenges are increasing day by day. In this exclusive interview, Kitson Tan, the Director of Business Development at ASDF, analyzed the current challenges facing the brand and its strategic considerations for the future.
Cassette design: From brand symbol to regulatory "red line"
"Our product series are all designed around the core symbol of 'cartridge'," Kitson emphasized when introducing their product line. He told 2Firsts that after the first 8000-unit "cartridge" disposable product was successful, the brand subsequently introduced 12,000-unit, 25,000-unit products, and also introduced refillable and open-style devices.
Currently, the product portfolio covers all types of e-cigarettes, from disposable products like Vapetape Tempo, to magnetic cartridge refillable products like Unplug, to open system devices like Engage that can be filled with e-liquid.
According to Kitson, the design of the "cassette" was initially intended to evoke nostalgia among consumers of a specific age group, and has successfully created a unique effect in the market of "recognizing the brand through design". Currently, its products have been available in almost all mainstream retail channels in Malaysia.
He said, "Our design team mainly consists of people born in the 80s and 90s who love music and have also experienced the era when cassette tapes were popular. We hope that even if the logo is covered, consumers can still recognize our products at a glance.
However, this design feature has now become a "double-edged sword" in the local market. With the implementation of the Tobacco Control Act (Act 852) in Malaysia in October 2024, ASDF is facing pressure from government regulation on public health and tobacco and smoking products.
"In the future, it may not be allowed to use our cassette design on new products in the Malaysian market as the new regulations consider it too appealing to young people," Kitson revealed.
In October 2024, Rizani bin Zakaria, chairman of the Malaysian Vaping Industry Association (MVIA), revealed to 2Firsts that a conference organized by the Ministry of Health on the Framework Convention on Tobacco Control (FCTC) was held for stakeholders in the e-cigarette industry. The conference provided a briefing on Act 852 and listed the types of prohibited products.
One of the e-cigarette products with a "cartridge-style" design is Vapetape, which is one of the best-selling products in the Malaysian e-cigarette market. It is also a major e-cigarette brand for ASDF.
This regulatory policy means that the core visual elements that ASDF has always emphasized will become an insurmountable "red line" in the domestic market. Not only does this force them to develop new, compliant product forms for the domestic market, but it also redirects more of their focus towards the international market.
Kitson stated that in order to comply with Malaysia's regulatory policies and to avoid government concerns about their "cartridge" design being "too appealing" to minors, ASDF will be forced to change the style of all cartridge designs in Malaysia. For example, the new switchable devices they introduce for the international market will be adapted to a simple "stick-style" design in Malaysia.
Product strategy: Emphasis on quality and taste, rejecting blind "ingredient stacking".
In the face of the widespread "feature race" within the industry - namely customizable flavors, adjustable nicotine levels, adjustable ice levels, and full-screen displays, ASDF has shown a cautious attitude. Kitson believes that excessive stacking of features may not necessarily enhance the user experience and could instead increase the product's failure rate.
"Consumers ultimately pursue stable and reliable quality and satisfactory taste," He explained, "We believe that what ultimately determines whether users will continue using a product is not fancy features, but the basic suction experience of the product.
Based on this, ASDF has focused its research and development on the flavor customization of e-liquids. Kitson pointed out that Malaysians prefer fruity flavors, slightly sweet, and low cooling level, while Chinese prefer high cooling levels. Kitson stated that ASDF's products lean more towards the preferences of Malaysians, which is also the focus of ASDF's efforts.
At the same time, the brand's product line has been comprehensively positioned around the needs of different consumers:
·Disposable products: The Tempo series, as the market leader, features an animated screen, three-level adjustment function, and displayed the latest 25,000-mouthpiece product at this exhibition.
·Replaceable products: The left and right magnetic absorption replaceable Unplug series and Chroma series, replaceable products attract price-sensitive users.
·Open devices: The newly launched Engage series, with a maximum power of 50w and a battery capacity of 2600mAh.
·E-liquid products: Already on display, but not yet officially on the market for sale.
"We are preparing to launch our own e-liquid products to complement open-system devices and build a more complete product ecosystem." Kitson added.
Internationalization: South Korea is Seen as a "Second Home," While The British Market is Too Volatile
ASDF has achieved success in the local market in Malaysia, but Kitson stated that in order for local brands to continue growing, they must expand beyond the domestic market. Starting from 2024, ASDF will begin venturing into international markets and actively participating in global trade shows.
According to him, ASDF's current key market is South Korea in Northeast Asia.
"South Korea is our most successful market outside of our home country," Kitson said. "Our designs are very popular in South Korea.
In contrast, the experience in the UK market was starkly different. "We attended the e-cigarette exhibition in Birmingham last year, and the market there was too competitive, with intense price wars," Kitson said. He observed that many representatives from Chinese factories were directly supplying distributors at extremely low costs.
"As a brand with significant investment in design and research and development, we are unable to compete on price. Dealers are impressed with our products, but as soon as they hear the prices, they reject them because they are significantly higher than those of other brands that focus on cost-effectiveness."
In the highly homogenized and price-driven UK market, the premium space for the design of new brands is severely compressed. Therefore, they are turning their attention to other emerging markets, such as South Korea, where they have established distribution channels.
Kitson stated that South Korea is a market highly sensitive to fashion and design trends, and it has a relative economic advantage compared to other countries. They mainly promote the Tempo series disposable products and the magnetic e-cigarette Unplug in South Korea.
When asked about the possibility of expanding into the American market, Kitson stated, "We are still hoping to further develop more markets in the Middle East and Europe.
However, he then went on to say that despite the desire to enter, the pace of product iteration in the US market is too fast, and the market entry threshold for new brands is extremely high, such as the regulatory PMTA threshold, which has blocked many players aspiring to enter the US market.
"Currently, for a new brand without a foundation in the American market, it is very difficult to get shelf space for sales."
Industry Observation: Homogenization Imitation and Regulatory Uncertainty
During the interview, Kitson also discussed some of the challenges currently facing them.
First is the serious issue of imitation. The hot sales of ASDF's design have attracted a large number of imitators. "After we launched the product with a side magnetic suction ejection, we saw a lot of similar designs at trade shows," he pointed out. This kind of imitation not only dilutes the brand's uniqueness, but more importantly, many inferior counterfeit products can damage the brand's reputation.
Kitson admitted that they have seen products in Malaysia that are identical to ASDF's "cartridge" products, except for the logo. These products can easily avoid accusations of infringement by changing colors and designs slightly, but some consumers may mistakenly believe that this is a new series from ASDF.
“When consumers buy counterfeit products with poor performance, they don’t distinguish them from the real thing—they just think ASDF has declined in quality. That harms us significantly.”
One of the brand’s biggest challenges is the uncertainty in Malaysia’s regulatory environment. In addition to design restrictions, the Control of Smoking Products for Public Health Act (Act 852) has imposed sweeping bans on online promotion, KOL marketing, and offline campaigns—severely limiting all channels of brand-to-consumer communication.
“Even posting an image of a nicotine-containing product on social media could be a violation,” Kitson explained. “This makes market entry extremely difficult for new brands.”
Complicating matters further is the lack of clarity around e-cigarette retail regulations. According to Kitson, retailers are confused due to multiple, inconsistent versions of rules governing in-store sales. He cited 2Firsts as an example, where different stores have different versions of displaying electronic cigarette products:
·Specialty vape stores: Required to use reflective glass on shop fronts, blocking interior visibility from the outside, though in-store displays remain allowed.
·Convenience stores and non-specialty retailers: Products must be locked in cabinets, and customers can only select flavors from a menu before staff retrieve the item.
Even more problematic is the regulatory inconsistency between Malaysia’s federal and state governments. While the federal government permits regulated e-cigarette sales, several states—such as Johor, Kelantan, Terengganu, and Kedah—have unilaterally banned the sale of vaping products altogether.
This prevents brands like ASDF from executing a unified national market strategy and effectively eliminates entire regions from potential sales.
As a result, Kitson advises caution to new entrants eyeing the Malaysian market. “Unless a brand already has strong international recognition, it's very difficult to gain a foothold here under current conditions and market saturation,” he said.
Kitson said, ASDF’s strength lies in its distinctive design, consistent flavor performance, and solid product quality. However, Kitson acknowledged the brand still lacks international visibility compared to other Malaysian competitors that have expanded overseas earlier.
“One reason we continue to participate in international expos is to increase brand visibility while preparing to enter new markets under compliant conditions,” he said.
He added that ASDF has already launched new open-system and refillable pod products tailored to the needs of different international markets.
“In Malaysia, brand recognition comes before product or channel,” Kitson concluded. “Product strength is the foundation, but brand strength determines how far you can go.”
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