Dubai transit to Saudi Arabia route surges? The Middle East is entering a new phase in July!

Recently, an industry personIt was revealed that "the Middle East is more popular。Saudie-cigarettesTransfers have skyrocketed in recent days, I just got a phone call from Dubai, and Dubai's transshipment channel to Saudi Arabia has gone crazy."

Saudi Arabia is indeed a market with great prospects in the Middle East and the market with the strictest customs clearance. Merchants want to squeeze in. Including United Arab Emirates, which has dozens of stores in Dubaie-cigarette brandsPOD SALT will next push into Saudi Arabia and march into Middle Eastern Arab countries such as Iran and Iraq.

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Recently, it has also been discovered thatMany China brand owners have begun to speed up their intervention in the Middle East market。We also found that a new brand, Cokii, had just opened its stores in Dubai, and that some leading companies were accelerating their entry into the Middle East.

01

The policy "opens" and the commercialization of e-cigarettes in the Middle East is accelerating.

Middle EastThe opening of the e-cigarette policy is the first step.# p#pagination title #e#

Before 2019, e-cigarettes were basically not allowed in the Middle East, when the e-cigarette black market was wrestling with the government. However, based on the balance of interests of all parties, e-cigarettes in the Middle East after 2019 have ushered in a gradual legal evolution. From the United Arab Emirates, Bahrain, Kuwait, Saudi Arabia to Egypt, and the Middle East has moved from countries banning e-cigarettes, more and more countries are aware of the need to include e-cigarettes under supervision and legally collect taxes. Coupled with the fact that more and more smokers in the Middle East are turning to e-cigarettes that are less harmful, this awareness is growing and bringing the market to a new stage.

The next commercialization of the market will be a process that reproduces the European and American markets. The Middle East is exactly the pattern in Europe and the United States a few years ago. The growth of various open oil filling systems has slowed down and steadily, and they are entering rapidly at one time. Commercialization has also begun to be rapidly realized in the Middle East.

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(E-cigarette transportation has become a popular option in the Middle East)

In terms of business atmosphere, the openness of e-cigarettes in the Middle East is much higher than that in Europe and the United States. All kinds of e-cigarettes have entered the market with loose controls, and even some products that do not comply are still sold on the counter.smoke oilThere is a lot of market demand, and a lot of them are placed on the counters, because the maximum volume of tobacco oil products allowed to be sold in some markets in the Middle East is 60 ml, while most other countries only have 10 ml or 20 ml.

Describing it as the 2023 Dubai exhibition,"The atmosphere is really good, and there are really many buyers in the e-cigarette channel, and they come from all over the world." Indian and Pakistani businessmen in the Middle East have a prominent position in the world's retail channels. Especially in Europe and the United States, a large number of Indian and Pakistani businessmen are recognizing e-cigarettes and promoting commercial e-cigarettes, which is also very conducive to commercialization.

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Consumption potential.# p#pagination title #e#

In terms of consumer culture and consumption levels, some countries in the Middle EastIt can all be said that consumption is supported.

For example, the average wage in Dubai and Abu Dhabi is above tens of thousands of yuan, which is even more developed than that of developed European countries.

Being in the Middle East is not only a strategy, but also driven by the consumer market.

Of course, consumption is not liberalized without size. For example, in Dubai, tobacco utensils and smoke are currently listed as tobacco control standards. The areas of use are consistent with tobacco control. The use of e-cigarettes is prohibited in shopping malls, medical facilities, schools and other areas.# p#pagination title #e#

At least for now in the Middle East, retail control is relatively loose. Although certificates are required, there are very few businesses that actually hold certificates.

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Multinational routes.

Middle East,Not an individual market #p#pagination title #e#, more inclined to the multi-country route market.

The store market is in Dubai, but the buyer market is in other regions/countries outside Dubai. Such as Saudi Arabia, Bahrain, Kuwait, Iraq, Iran, Turkey, Egypt, etc.

Market requirements are also different,For example, in the development of the Dubai market, compliance and tax payment are very importantIn Saudi Arabia and Egypt, laws and regulations are strict and logistics is very important.

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Also in view of tightening policies in Europe and the United States, in the Middle Easte-cigarette marketDuring the relatively blank period, the first companies to enter the market will have a huge first-mover advantage and lay the market foundation in one fell swoop.

04

Tobacco basics.

Middle EastThe region has a large smoking population, at least more than 100 million.

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There is a strong hookah culture, the traditional tobacco market sales are very large, and there are also a large number of middle-aged and middle-aged people.

Compared with tobacco, the cost performance of e-cigarettes has gradually emerged.

Currently, the scale of e-cigarettes in the Middle East is only US$400 - 600 million, compared with nearly US$10 billion in the United States and tens of billions of RMB in Europe.The incremental space brings several times the potential for future growth to the Middle East. This is the temptation.

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(Middle East heat)

some people sayThe Middle East is an emerging market. Some people say that the Middle East is a mature market with a different starting point in essence. It is undeniable that in some areas of the Middle East, e-cigarettes are very mature, various systems are relatively complete, and the category of e-cigarettes has also broken through its peak. Hundreds of brands are "rolled up" in one market, but there is still relatively few head clusters.

International e-cigarette giants are also targeting the Middle East.For example, Philip Morris International's IQOS#p#paginated title #e#heating non-burningProducts have entered the Dubai market and are promoted through duty-free shops, supermarkets and supermarket chains at Dubai International Airport. In addition, British American Tobacco,JUULThey are all laid out in the Middle East. China e-cigarette giant Simmore,Jier Technology、Love miracles、Avipus、Youweier、Fumaietc., are strengthening market layout in the Middle East. Some brands FUMO, MAZAJ,TUGBOATHas embarked on a brilliant trajectory in the Middle East.

Some merchants recently also reported that "has the Middle East market opened up recently? Many suppliers are running there."

However, each market has its own characteristics. In the Middle East, even if the European and American markets are replicated, the sales paths are different, and we have to change our thinking. For Chinae-cigarette enterprisesGenerally speaking, the Middle East e-cigarette market contains huge business opportunities and is an important area for spreading risks and expanding overseas business. It is urgent to explore the Middle East market. Early entrants will benefit the most!