On December 16th, Dmitry, representative of e-cigarette brand SOAK, engaged in a conversation with 2FIRSTS at the VAPE CLUB SHOW 2023 in Russia. During the discussion, Dmitry provided an in-depth analysis of the development prospects of the Russian market and the brand's future new plans.
The recently released e-cigarette regulatory policy by the Russian government has attracted widespread attention from the industry. Dmitry admitted that predicting the direction of the policy is exceptionally challenging.
He expressed that starting from March next year, Russia's ban on e-cigarette additives will be implemented, and the pace of strengthened regulation is astonishing. Unlike other countries, Russia has not reduced taxes but instead increased them by tenfold, posing significant challenges to the industry. However, he mentioned the example of Turkey where the sale of e-cigarettes is prohibited, yet e-cigarette stores are thriving, indicating that even under regulatory pressure, there is still enormous market potential for e-cigarettes.
Despite facing regulatory uncertainties, Dmitry remains optimistic about the prospects of the Russian market. He believes that the e-cigarette market in Russia is still expanding, with new products constantly emerging, indicating that the entire industry is still in its growth and upward phase.
Dmitry revealed that SOAK brand is considering launching a new product line in 2024 or 2025, which may include screen design. He emphasized that the brand remains committed to standing out from the crowd, focusing on unique design and independent research and development.
Dmitry mentioned that SOAK is set to launch a new product line in March next year, featuring their own in-house developed e-liquid blended with various natural flavors, promising a unique vaping experience.
In this innovative process, the support of a Chinese team has been obtained. SOAK will customize unique flavors based on the needs of users in the Russian region in order to meet the variations in consumer tastes in different areas.
Dmitry gives high praise to Chinese e-cigarette brands, stating that 99% of e-cigarettes are manufactured in Shenzhen, China. He believes that Chinese brands hold significant competitiveness in the market. He acknowledges customers' right to choose brands and expresses an open attitude towards Chinese brands as long as they do not affect SOAK's customers.
Dmitry shared the brand's marketing strategy, which involves developing through agency channels in Europe, the United States, and the Middle East. Additionally, increased investment will be allocated based on the performance in different regional markets. Logistics plays a crucial role in the expansion of the market, and SOAK plans to allocate substantial funds towards equipment and logistics to ensure the rapid and smooth delivery of products to the target markets.
We will allocate one million dollars for equipment and one and a half million dollars for logistics. This can still guarantee profitability. In Turkey, the cost of equipment logistics amounts to 23 dollars," Dmitry said.
In conclusion, Dmitry points out that an increasing number of people are recognizing the assistance e-cigarettes provide in quitting smoking. His personal experience also confirms this, as he quit smoking after 20 years and turned to using e-cigarettes. This further underscores the potential value of e-cigarettes in aiding smoking cessation.
At this exhibition, SOAK is looking forward to achieving even greater success in future market competition.
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