The IEICE e-cigarette exhibition took place in Jakarta, Indonesia from August 3rd to 5th. As the official media partner of the IEICE, 2FIRSTS conducted in-depth interviews with key participating companies on-site and timely reported firsthand market information obtained at the exhibition.
On the first day of the exhibition, 2FIRSTS conducted an interview with Mr. Zeng Huabin, Deputy General Manager of MOTI's China and Southeast Asia divisions.
According to Zeng Huabin, in the Indonesian market, the mainstream products are not globally popular disposable e-cigarettes, but open systems. Open devices and e-liquids account for 60% to 70% of the market share. Zeng Huabin explains that disposable e-cigarettes have higher tax rates and are subject to restrictions on e-liquid capacity, resulting in relatively higher prices. Therefore, local consumers tend to prefer affordable open systems. In addition, local e-liquid manufacturers in Indonesia hold a strong position and have established strict local protection policies, which has led to the headwind facing the development of disposable e-cigarettes in the local market.
Indonesia has only one exception, according to Zeng Huabin. Disposable e-cigarettes sell very well in Bali, a famous tourist destination in Indonesia. This is due to the large number of tourists in Bali, their strong purchasing power, and their preference for buying disposable e-cigarette products. However, in other regions of Indonesia, open-system products are still mainstream. Nevertheless, Bali's market volume is still relatively small for most companies.
Zeng Huabin mentioned that in the Indonesian market, MOTI collaborates with open-system brands, mainly focusing on well-established brands such as VAPORESSO, VOOPOO, LOST VAPE, and UWELL. MOTI promotes both open-system and disposable products in this market. Currently, the most popular product is MOTI·PLAY, a new concept open-system product launched in March this year, which has already gained a considerable market share through various distribution channels. On the other hand, the sales volume of disposable products has also increased by more than 20% monthly, but the growth rate is not as rapid as that of the open-system products.
Furthermore, he mentioned that in the Indonesian market, where open-ended products have a relatively high market share, the applicability of the commonly used domestic brand flagship store model is still debatable. This is because local Indonesian consumers have relatively low consumption levels, and this model poses a higher level of difficulty in consumer education.
Zheng Huabin, when discussing the regulatory characteristics of the Indonesian market, stated that customs and other regulatory agencies have strict enforcement measures, possibly due to the longer history of compliance in Indonesia. In this market, tariff labels are an effective regulatory method that can effectively prevent tax evasion.
Finally, while discussing the Indonesian gray market, Zeng Huabin stated that e-cigarette products that can be found in retail stores are usually "white market" products, as retailers are unwilling to bear the risk of legal violations for the brand. However, "gray market" products do exist, but they generally appear in less easily detectable locations.
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