Recently, Yueke launched a new type of removable cartridge cigarette set RELX Infinity Plus in Indonesia. Yueke has been developing in Indonesia for several years, and the Indonesian market has also attracted companies such as pomelo.
In addition to the brand name, the agency also expressed interest in building factories in Indonesia. Some leading companies, such as Simore, have built factories, and more enterprises are still under investigation. They want to use Indonesia as an export processing base.
Unlike the Chinese market, which is completely monopolized, the Southeast Asian market represented by Indonesia is more like the Chinese market four years ago, which is relatively open in policy. This large market of hundreds of millions of smokers is very attractive to Chinese enterprises.
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The two supremacy of electronic cigarette professional media has recently investigated in Indonesia and found that there are Yueke, Laimi, YOOZ, Xuejia and other well-known domestic brands in Indonesia, who basically plan to follow the domestic model, build their own brands and vigorously expand channels. The main style of Yueke is the same as that in China, except that the flavor of cigarette bombs is flavored fruit. Consumers in Southeast Asia market like cool taste.
In Indonesia, open products occupy most of the market, and both large and small cigarettes are mainly open. The local government only levies a tax of IDR 445/ml on local tobacco oil, while a tax of IDR 6030/ml is levied on closed pre filled products. The policy is obviously biased against local tobacco oil traders. Therefore, there is no disposable product of more than 6ml in the Indonesian market. The tax cost alone is 18 yuan, almost equivalent to the product cost. The more popular disposable product in the market is less than 3ml, and the retail price is about IDR 150k.
Among the closed cartridge replacement products, Yueke sells well. Yueke replicates the domestic model, vigorously develops agents and dealers, and builds a franchise store. The retail price of a cigarette cartridge is about 45 yuan, which is more expensive than that in China. However, for offices and other places, or for girls, the closed cartridge replacement products are more appropriate. Only a small number of closed disposable products are sold.
YOOZ Indonesian staff said that there is a certain threshold for Indonesia to make electronic cigarettes. Indonesia needs NPBBK with import and export qualification. Indonesian electronic cigarette products need to be labeled with tax labels. Indonesian electronic cigarette taxes are relatively heavy, and closed products are basically equivalent to about RMB 3 per milliliter.
In addition to introducing the classic ZERO sold in China, YOOZ also introduced high-end products UNI (345k IDR single host, 179k IDR two bombs), mid-range products Z3 and entry-level products mini (179k IDR two bombs per shot or two bombs).
Miao Yuan, head of the Southeast Asia market of LAMI (Laimi), said that Laimi chose the brand to go to sea. Brands go to sea more often than not in addition to manufacturing, which can provide added value to local partners and create greater value for customers. The core purpose of the brand is to reduce transaction costs, so that users can make choices faster and more confidently, which is also a long-term process.
Laimi plans to introduce a full range of products, including high-capacity disposable, small capacity disposable, high-capacity cartridge replacement, small capacity cartridge replacement, and open type fuel injection cartridge replacement products, to try to find out the hot selling products in the market and further expand.
In Indonesia, the old open equipment VOOPOO sells best, and GEEKVAPE, VAPORESSO, SMOK, Uville, etc. Only Yueke is mature in closed cartridge replacement, while others are in the initial stage.
From last year to the year before last, the closed bomb replacement products gradually began to take off, mainly Yueke. Now more and more Chinese brands are entering Indonesia, and the market share of closed products has been growing gradually.
The hardware of Indonesia's electronic cigarette is basically from China and Shenzhen Shajing. However, Indonesian local oil and tobacco merchants have certain advantages. Indonesian local oil merchants generally make open products. They have their own brand of oil and tobacco, and buy Chinese hardware to match and sell to consumers.
Local people like cool, colorful, lighting, or fancy products.
Disposable electronic cigarettes, which are popular all over the world, account for more than 60% of the world's shares, but there is no market in Indonesia, mainly because of tax reasons. Local people prefer products with less than 3ml.
At the recent electronic cigarette exhibition held in Indonesia, Mr. Nirwala, Director of the Communication and Stakeholder Compliance Department of the Indonesian General Administration of Customs, delivered a keynote speech entitled "Indonesian Customs Clearance and Tax Policies for Imported Electronic Cigarette Products". Mr Nirwala said that from 2017 to 2021, Indonesia has been collecting 57% tariff on electronic cigarette products. This year, the tariff is calculated on a unit basis, with IDR 2.71 per gram of solid tobacco products, IDR 445 per milliliter of open system tobacco oil, and IDR 6.03 per milliliter of closed system tobacco oil.
Contact: Judy He
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Email:judy@intl6.aierbaita.com