According to Jpnn on November 11, Indonesia's Ministry of Health's draft regulation on the safety management of tobacco and e-cigarette products (RPMK) has faced criticism from some as a discriminatory policy that could harm the market position of e-cigarette brands.
Brand and marketing expert Yuswohady pointed out that brands signify not only product quality but also play a crucial role in market differentiation. If tobacco products shift to plain packaging, it could negatively impact both businesses and consumers. This policy could lead to a decline in business performance, as consumers may opt for lower-priced products, overlooking quality factors.
Additionally, Yuswohady pointed out that consumers might feel confused when choosing products, struggling to identify quality items. Yuswohady emphasized that such homogenization of packaging might lead to brand disappearance, flooding the market with low-cost products and pushing consumers to focus more on price than quality.
Furthermore, lower prices could lead to an influx of illegal products into the market, resulting in unfair competition. He expressed concern that the e-cigarette market could regress due to competition between inexpensive illegal products and legitimate products.
Yuswohady urged the government to reconsider this draft policy, noting that the e-cigarette industry encompasses an extensive value chain, including tax revenue, which is a significant contribution to national income.
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