Special announcement:
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At 10:00 am on June 3rd, according to Madrid time (4:00 pm Beijing time), the Vapexpo, an electronic cigarette exhibition, was officially inaugurated at the Pabellón de Cristal exhibition center in Madrid, Spain.
Spain, located in southwestern Europe, lags behind countries such as the UK, France, and Germany in terms of electronic cigarette sales. According to data from statistics website Statista, the country's total revenue from electronic cigarettes is expected to reach $194.6 million by 2023. However, 2FIRSTS learned from a recent electronic cigarette trade show that an increasing number of Chinese electronic cigarette manufacturers have entered the Spanish market.
The electronic cigarette market in Spain has more supply than demand.
The head of IJOY's Netherlands branch, Zhu Zhihui, has stated that Spain will experience a boom in the electronic cigarette industry starting from July 2022. Zhu believes that new brands will enter the market and attempt to gain a competitive edge by lowering prices, in an effort to attract new users.
He said, "Nowadays, the competition in the Spanish market is not about a specific product or flavor.
Secondly, and most importantly, IJOY has chosen to establish its European subsidiary headquarters in the Netherlands due to the country's leading position in European logistics. Furthermore, there is currently an excess of e-cigarette inventory in the market compared to the demand.
Zhu Zhihui stated:
Absolute supply exceeds demand.
In order to expand their markets, many electronic cigarette brands have resorted to risky tactics in Spain, evading regulations and even selling electronic cigarettes with a capacity of up to 8000 puffs to retailers.
According to regulations in Spain, the sale of e-cigarette products in the market is only allowed if their capacity is below 2ml (equivalent to approximately 600 puffs).
These actions have led to increased government regulation, with Spain introducing a series of policies to strengthen e-cigarette regulation starting from the end of 2022.
In reality, electronic cigarette vendors in Spain are not deliberately breaking the law by selling their products. The 600-puff limit allowed by the European Tobacco Products Directive (TPD) has discouraged consumers from purchasing compliant products and instead turned to buying illegal ones. With an oversaturated market, sellers have resorted to competing based on high quantities.
Indeed, this is a reflection of market demand. Consumers have little interest in the 600 product.
The market is declining.
According to Zhu Zhihui, the electronic cigarette market in Spain is declining. Under restrictive regulations, all manufacturers are competing within a limited range of 600 units, with price being the sole determinant of market value.
He gave an example that, if a product were to be sold at a price of 1 yuan to the market, as long as someone helped him clear the stock, it would be fine. However, the cost of customs clearance and logistics would already be between 0.3-0.4 euros.
I too can create a brand, and I can even abandon my brand for someone else to take up.
Manufacturers are struggling to maintain profit margins in the face of high costs and fierce price competition. When introducing new products, they are immediately met with competition from similar companies. As a variety of products flood the market, lesser-known small and medium-sized brands lack the recognition to establish dominance, ultimately leading to a lack of visibility for new products in the market.
Zhu Zhihui said to 2FIRSTS:
Currently, it is actually quite difficult to launch new products.
He and his team participated in the Madrid Electronic Cigarette Exhibition in Spain with the aim of expanding their customer base and increasing brand recognition.
2FIRSTS will continue to report on the latest developments from the exhibition. Stay tuned for updates.
Background:
On May 15th, 2FIRSTS and VAPEXPO SPAIN announced a partnership as media collaborators aimed at promoting the development and exchange of the global electronic cigarette industry.
Vapexpo Spain is the largest and most important exhibition for the vaping industry in Spain, bringing together manufacturers, suppliers, retailers, and industry experts from around the world. As a global technology media and think tank, 2FIRSTS shines a spotlight on hot topics and trends in the global vaping market, dedicated to promoting information and communication in the global e-cigarette industry and leveraging media influence to support the development of the vaping industry worldwide.
*This article is an original article of 2FIRSTS Technology Co., Ltd. The copyright and license rights belong to the company. Any entity or individual shall make link and credit 2FIRSTS when taking actions to copy, reprint or distribute the original article. The company retains the right to pursue its legal responsibility.
