At the Asia International New Tobacco Industry Expo (ANTY EXPO) held at the Malaysia International Trade and Exhibition Center, Derrick, the head of the well-known e-cigarette brand SKE Malaysia, spoke to 2Firsts about SKE's development in Malaysia over the past six months and shared his views on the future of the e-cigarette market.
Localization is complete and comprehensive localization
At the exhibition, SKE showcased new e-cigarette products that have already been launched in markets around the world, such as a touchscreen adjustable wattage e-cigarette device released in the United States and a "four-in-one" product launched in the United Kingdom. However, these products have not yet been fully introduced in the Malaysian market.
He also mentioned that such multifunctional innovative devices could potentially enter the Malaysian market in the future, further enhancing the brand's competitive advantage.
This time, the focus was on improving the taste of the product. In the localization of e-liquid flavor blending, FlavorFit developed new flavors to cater to these diverse taste demands.
When discussing SKE's strategy for entering the Malaysian market, Derrick emphasized the importance of localization. He pointed out that although SKE products are popular in the UK and other European countries, upon entering Malaysia, the team realized that simply importing foreign products would not meet the needs of local consumers.
We found that the taste preferences of Malaysian consumers differ significantly from other markets. For example, the Chinese prefer tea flavors and cool sensations, while Malays tend to like sweeter fruits and yogurt series. To cater to these diverse taste preferences, SKE spent a considerable amount of time conducting research before entering the market. Ultimately, they chose to collaborate with local flavorists to customize e-liquids that suit the Malaysian consumer's tastes," Derrick said.
Furthermore, he also mentioned that SKE has made significant adjustments in design and packaging to ensure their products stand out in the local market. He stated:
We must respect the culture and preferences of local consumers and cannot simply transfer products and strategies from abroad.
New players continue to enter the market, "it is indeed very chaotic.
Although SKE entered the Malaysian market relatively late, the head of SKE Malaysia remains optimistic about the company's prospects in the region.
He explained that the Malaysian market is currently very chaotic, with many brands clearing out inventory and new brands and products constantly entering the market, leading to increased competition. However, he believes that with the upcoming e-cigarette regulation policy to be introduced by the government, the market will gradually become more regulated.
He pointed out, "The current market is indeed chaotic, especially in the wholesale market, where we can see some brands clearing inventory at extremely low prices. However, with the implementation of new government policies, some non-compliant small brands will gradually be eliminated.
The official also mentioned that tax policies will have a significant impact on the market in the future. He explained:
The Malaysian government started taxing e-liquid last year, and the future tax system will be more transparent and strict. Therefore, compliance will be key to whether a brand can establish itself in the market in the long term.
At the start of the differentiation competition
In terms of product positioning, SKE has chosen a differentiated route, attracting consumers' attention through customized flavors and unique product designs.
The official mentioned that many international bestselling brands have been launched in the Malaysian market, but the development results have not met expectations. However, they are leveraging the advantages of channels such as convenience stores. When SKE enters the market, in order to further enhance competitiveness, they are currently undergoing localization adjustments to their products to cater to the preferences of local consumers.
We not only provide beautiful exterior designs, but also ensure that the taste and price of the product meet the needs of the local market. A successful e-cigarette product must be appealing in taste, appearance, and price," he added.
In September, the launch of a local promotion plan may take place.
In terms of marketing, the company stated that it will adopt a strategy that combines online and offline methods in the future.
The head of SKE Malaysia has stated that the company is currently preparing for a new online marketing plan, which is expected to be launched in September or October of this year. Additionally, they are also increasing brand exposure through collaborations with Key Opinion Leaders (KOLs) and offline events.
Looking ahead, the person in charge is confident about the future of the e-cigarette market in Malaysia. He believes that with the government's regulatory policies becoming clearer, brands that operate in compliance will have more market opportunities. At the same time, he also emphasized the continued focus on localization and policy compliance.
Respecting local consumers, respecting local culture and policies are our core strategies. Government policies have a direct impact on the market, and if you do not comply, you may be eliminated at any time," said Derrick.
For other e-cigarette brands looking to enter the Malaysian market, Derrick offered his advice:
Localization is crucial, whether it be in terms of product taste, packaging design, or team building, it must adapt to the local market demand and culture. Only by doing so, can a brand thrive in the Malaysian market in the long term.
He also pointed out that many brands are attempting to enter the Malaysian market through strategies such as clearing inventory at low prices or importing products directly from overseas, but this is not a sustainable development strategy. SKE's success lies in deeply understanding the market and making comprehensive local adjustments based on the needs of local consumers and policy requirements.
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