SmilerVape: A Leading Brand in the Indonesian E-Cigarette Market

The IEICE e-cigarette exhibition was held in Jakarta, Indonesia from August 3rd to 5th. As the official media partner of this event, 2FIRSTS went on-site to conduct in-depth interviews with key exhibiting companies and promptly report on the firsthand market information obtained at the exhibition. On the first day of the exhibition, 2FIRSTS interviewed the CEO of the e-cigarette brand SmilerVape, Wang Yu.

According to Wang Yu, SmilerVape has recently completed the registration of its company in Hong Kong and the global trademark registration. It has also established its global brand operations center in Kuala Lumpur. The company plans to expand its presence in the Southeast Asian market in the near future and aims to enter the Middle Eastern and European markets next year.

At the IECIE exhibition, SmilerVape showcased three oil-refillable disposable e-cigarette devices (excluding e-liquid). The devices have oil capacities ranging from 2ml to 6ml and can be refilled with e-liquid 7-10 times. The market price is approximately around 50 Chinese yuan. When discussing the design concept of the products, Wang Yu stated that all three products have been improved and upgraded to suit the local characteristics of Indonesia, aligning with the local consumer mindset and aimed at enhancing the diversity of disposable e-cigarettes with larger capacities.

He further elaborated that due to Indonesian regulations stating that the e-liquid capacity of e-cigarette products cannot exceed 6 milliliters, e-cigarette manufacturers must fully consider the balance between market demand and profit points. If the oil injection volume of disposable products is too small, the product cost will be biased towards materials such as batteries, oil tanks, and structural components, resulting in material waste and thin profits. However, if the oil injection volume is larger or can be repeated, it can greatly improve the cost-effectiveness of the product and reduce environmental pollution while maintaining the same structure. The introduction of refillable disposable e-cigarettes is an innovative product designed to meet this demand.

Wang Yu explained why SmilerVape only supplies devices and does not venture into the e-liquid business. He pointed out that this is not a unique business model for SmilerVape. In fact, many well-known e-cigarette brands in the Indonesian market adopt this common strategy of selling devices without offering e-liquids. He explained that local e-liquid brands in Indonesia are already very mature and popular among local consumers. Localized e-liquids have become the core industry of the Indonesian e-cigarette market. Due to the strict tax policies imposed by the Indonesian government on imported e-liquid products and pre-filled oil products, costs have risen rapidly, creating formidable policy and market barriers. In such a market environment, it is difficult for Chinese e-cigarette companies to enter the e-liquid market. Therefore, focusing on selling devices has become a smarter business decision.

The move by Yooz in launching e-liquid products in the Indonesian market has been deemed a "clever move" by Wang Yu. He believes that Yooz has made accurate judgments in entering the e-liquid market and has strategically positioned itself in advance, laying a strong foundation for brand development. By introducing localized e-liquid brands in Indonesia, Yooz has gained a significant competitive edge and can vie for market share at a lower cost.

Speaking about the characteristics of the e-cigarette market in Indonesia, Wang Yu stated that the advantages of this market are its large user base, high demand, and strong economic vitality. However, he also pointed out the disadvantages, such as the strict policies towards foreign brands, high market competition barriers, and high entry costs for brands. In addition, Wang Yu shared his views on the development of product forms in the Indonesian market. He believes that all consumer goods go through a process from nonexistence to existence, from existence to improvement, and from improvement to standardization. Currently, the Indonesian market is in the stage of improving product forms. Just like bottled water and mobile phones, the ultimate form of market competition is no longer about the product form, but rather the distribution channel strength and brand market share. Products only account for a small part of the core competitive advantage.

Finally, Wang Yu declared that although the Indonesian market is currently dominated by local e-liquid brands, disposable products still remain the future trend of development.

Thumbnail Caption: SmilerVape CEO Wang Yu (second from left) with 2FIRSTS staff members (leftmost and third from left)