Dicodes, a German e-cigarette company founded in 2009, has experienced considerable success in Asian markets, even as it faces challenges in Germany. In an interview with 2FIRSTS London at the Hall of Vape Exhibition in Stuttgart, Germany, Achim Kleinlogel and Georg Usai, Co-CEOs of Dicodes, discussed the company's journey and market focus.
Initially, Dicodes developed and manufactured electronics, controls, and automation systems for various industries. In 2013, a customer approached them to develop mods for e-cigarettes, leading to their shift into the vaping industry.
Today, Dicodes is one of the two key e-cigarette manufacturers in Germany, with all their products made in the country. However, the German market has posed significant challenges for the company, including high inflation, increased energy costs, and the rise of disposable e-cigarettes -- speaking of which, Achim and Georg hold similar opinion as Simon Bauer, chairman of Bundesverband Rauchfreie Alternatives e.V. (German federal organization for smoke-free alternatives, BVRA). Achim and Georg stated that "the disposable e-cigarettes attracts a lot of young users, and this is the reason that disposables will be the killer of e-cigarettes in Germany and maybe the EU". They referenced Burkhard Blienert’s recent statement* that flavors or aromas in e-cigarette should be forbidden.
These factors have affected consumer willingness to spend on high-end luxury products like Dicodes's offerings. Additionally, many German consumers prefer more cost-effective products from China.
Despite these challenges, Dicodes has found success in Asian markets, where demand for luxury German products is high. Countries such as Malaysia, Japan, South Korea, China, and Vietnam are among the firm's key markets. The company also plans to go to Italy and the UK, where demand for high-quality German goods is strong and the government is supportive of vaping.
The recent e-liquid tax in Germany has not directly affected Dicodes, as their primary markets are outside the country. However, Kleinlogel and Usai acknowledged that the tax has made vaping more expensive in Germany and may impact the industry's future growth.
Editor's note:
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