FUMOT Interview: Germany's Grey Market Shifts Online, '2+10' Products Emerge as Trend

On September 19th, 2024, the InterTabac tobacco exhibition in Dortmund, Germany officially opened. On the opening day, 2Firsts conducted an exclusive interview with the popular e-cigarette brand FUMOT.

FUMOT staff briefed 2Firsts on the current situation in the German market. According to their information, leading brands in the compliant German market include ELFBAR, BLU, HQD, and FLERBAR. Additionally, FUMOT's flagship products have achieved shipments of several million units in the German market, making it their key market.

When discussing the mainstream product types in the German market, the staff member stated that due to factors such as low cost-effectiveness, small-sized disposable products have seen a significant decrease in market share in Germany, becoming increasingly marginalized. Conversely, new large-sized disposable products that comply with TPD standards are emerging, such as innovative products like "n in 1" and "2+10." Therefore, at this trade show, FUMOT also introduced a variety of innovative products like "2+10" to meet the demands of the German market and solidify its market position.

For brands looking to enter the German market, the staff member believes that although Germany is an important market in Europe with promising prospects, the acceptance of new brands is relatively low. Distributors tend to prefer familiar brands. Therefore, achieving success in the German market requires long-term cultivation and careful planning.

When it comes to regulation, the above-mentioned staff shared the regulatory situation of the e-cigarette market in Germany. According to their information, Germany imposes high taxes on e-liquid products, with a tax of 2 euros per compliant 10ml e-liquid. German police also conduct strict inspections of tax labels attached to products at the retail end. Among them, Berlin has the highest inspection frequency in the market, but the penalties for violations are relatively light, usually limited to confiscation of goods or fines. In contrast, the market in Cologne has the strictest regulation, and sellers of tax evasion products may face criminal liability.

According to reports, despite this, there are still underground markets in Germany, but these markets mainly operate through online channels such as WhatsApp and Instagram. Due to the high risks involved in offline transactions, only a few retail stores dare to get involved, and they usually only sell to trusted customers.

In the interview, FUMOT's onsite staff repeatedly mentioned the keyword "compliance." They believe that with the increasing strictness of market supervision in Germany, brands must actively align with compliance standards in order to achieve long-term stable development.