On September 15th, at the Dortmund Tobacco Exhibition, 2FIRSTS had an exclusive interview with CEO Cheng Guozuo of Yuoto. He believes that both refillable and disposable e-cigarettes cater to different consumer groups and that refillable ones cannot replace disposable ones.
Cheng Guozuo told 2FIRSTS that Yuoto's new product has improved its core features and some products were not showcased at this exhibition. There are plans to release these new products globally in the future.
When asked about the popular products of Yuoto, Cheng Guozuo stated that Yuoto offers different types of products with high, medium, and low nicotine levels. As for which product is more popular, it depends on the region where the consumers are located. He believes that the German market is no different from other European markets, as the entire European Union is an integrated region. The preferences, tastes, and awareness of German consumers regarding these products are almost the same as users in other EU countries. However, when it comes to the appearance of the products, different regions have different preferences. He believes this is not the core factor since the users of these e-cigarettes are new smokers rather than loyal electronic consumers. True loyal e-cigarette consumers place more emphasis on taste.
Cheng Guozuo believes that Europe is comparatively neutral and inclusive in the global context. For instance, when it comes to e-cigarette flavors, Southeast Asia tends to have stronger flavors, China prefers milder ones, while Europe leans towards a more neutral profile - neither too strong nor too mild.
For attending this Dortmund tobacco exhibition, Cheng Guozuo stated that the purpose of participating is not to acquire new clients but primarily to engage in face-to-face communication with old clients and maintain those relationships. In Cheng's perspective, overseas e-cigarette exhibitions are becoming increasingly unfavorable as they are held too frequently, sometimes even monthly, with little variation in the showcased products. This has resulted in a sense of "fatigue" among consumers and distributors.
Regarding whether the pod system will become a future trend, Cheng Guozuo believes that it is necessary to examine the development process of disposable e-cigarettes first. Many people have designated 2020 as the "year of disposable e-cigarettes," as this year witnessed a global explosion of disposable products, leading to significant proliferation. The popularity of disposable e-cigarettes has brought about a qualitative change to the e-cigarette industry, something that other forms of products have failed to achieve. This is because disposable e-cigarettes possess the characteristics of fast-moving consumer goods, making their proliferation and spread more prominent.
Cheng Guozuo states that disposable e-cigarettes have convenience advantages, while pod systems, which are replaceable, differ from disposable products in their lack of fast-moving consumer goods attributes and transmission properties. For white-collar workers and professionals who are always on the go, using a replaceable product may prove to be inconvenient, potentially leading to a decline in usage over time. Therefore, the choice between disposable and pod system e-cigarettes depends on the target consumer group.
The disposable e-cigarette industry is becoming increasingly competitive, according to Cheng Guozuo. As the popularity of disposable e-cigarettes grows, both brand and distribution companies are facing declining profits due to intensifying competition. What lies ahead for the e-cigarette market in Europe? Cheng Guozuo believes that as an economic entity, the European Union's member states will borrow policies from one another. Within the EU, Germany holds more influence and is more representative, making the German market likely to set the direction for e-cigarette development in Europe to some extent.
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