Disposable Vapes Set to Take Off in Indonesia — But How Many Hurdles Remain?

The Indonesian market is characterized by a very specific, open-ended predominantly. Disposable is mainly used in the night market, 500-800 mouth.

Recently, I contacted a person in Indonesia, said "disposable has special characteristics, unlikely to develop in Indonesia". Also specifically said that "the Indonesian market has its own attributes, the consumer power is not high, disposable is very expensive, consumers generally do not choose; at the same time, the local people are to inject oil-based consumption, because the local smoking oil cheap".

(Indonesia)

In accordance with its disclosure, went to so many disposable, there are only a few selling. In the words of this person said, disposable has market area specificity, temporarily unlikely to develop in Indonesia, so generally Indonesia first do not do disposable. If you think you can own education sake, early to be educated. But in fact, disposable is still not done in Indonesia, and also only the first-tier city market can be done, but can not get up a lot.

Currently in the Indonesian market, disposable, the market is not more than 10 brands, such as you and me, Yue car, for the United States, COC, SMOK, VOOPOO, VOOPOO, VOOPOO. class="keylink">Snow Plus, SP2, and more.

Yuekue's bullet change is doing OK in Indonesia, with many channels and stores. It is reported that Yuekue opened local stores in Indonesia, more than 700 stores.

01

Big Smoke occupies 50% of the market!

Indonesian market distribution, market share, bigsmok 50%; bullet change (mainly RELX) 30%; disposable: 20%.

With this, the e-cigarette market in Indonesia is still dominated by large smoke and open oil filling.

Compare disposable, disposable cost-effective, on the one hand, disposable price is high, but the local per capita is low, so with disposable consumer group is not big.

Local big smoke brands are: voopoo, smok, aispire, UWELL, lostvape, Geekvape, Geekvape, Geekvape, Geekvape. mainly, Innokin, FreeMaX, nevoks are still relatively few.

In addition, due to the local tobacco oil in Indonesia is too cheap, a comprehensive comparison of the choice of open consumption. Consumers generally buy POD mainly to choose the oil-fillable products.

02

Indonesia is mainly 4 regional markets.

Indonesia e-cigarette market is mainly 4 regions, including Jakarta, Bandung, Surabaya and Yogyakarta. Among them, Jakarta, Bandung and Surabaya markets are more active.

(Distribution of regions in Indonesia)

Some regions such as Bali tourist city areas, many European and American tourists. Consumption of disposable mainly, they prefer brands have HQD, ELFbar these brands.

Local disposable brands, mainly concentrated in HQD, ELFBAR, you and me, Yue carve, for the United States (a small range), Coze (Surabaya, Indonesia, local brands), fog, snow plus mainly.

And the local bullet change brands, mainly Yue carved, SP2, Lana (Laan) are relatively few.

03

Disposable large mouthfuls can't be sold?

In Indonesia's market, disposable large mouthfuls are generally not sellable, and there are fewer black markets.

According to local disclosure, because the market regulations, large capacity can not be sold, 6ml2000 mouth basically capped. Generally popular 3ml.

04

Smoking oil is mainly the local market.

Indonesia's cigarette oil, mainly local. And the origin of Indonesian tobacco oil is mainly Malang Regency. Information also shows that Indonesia's tobacco oil is very developed. Data from the Indonesian Ministry of Industry shows that in 2020 Indonesia alone has more than 300 tobacco oil factories, nearly 20,000 kinds of tobacco oil.

Carefully analyzed, why Indonesia with local tobacco oil mainly, this is mainly tobacco oil policy is tilted.

In Indonesia open products occupy most of the market, no matter big smoke and small smoke are mainly open. The local government only levies a tax of Rp445/ml on local tobacco oils, while a tax of Rp6,030/ml is levied on closed pre-filled products, which shows that the policy is clearly tilted in favor of local tobacco oil traders.

Overall, the Indonesian market is still in the stage of big smoke and open oil filling, with general disposable market penetration.

Distributors, Indonesia JVS, OOZE, REFRE5H, etc., are the head distributors. Distribution stores are more atmospheric, distributed in the street, but also distributed in shopping malls and so on.

(Local Dealer Stores)

The area around Jakarta and South Tanggelong has a higher concentration of e-cigarette stores. In addition to having stores, the channel also has coffee shops, cell phone stores, bars, shopping malls, and these forms. Consumer products are also mostly filled with oil and changing cartridges.

(E-cigarette store form Indonesia)

Currently, Indonesia is one of the regions with the best policies, and since the market opened up to legality in 2018, it has received a lot of attention from the Chinese manufacturers' brands, with a large number of SMEs are heading to Indonesia to enter.

Policy-wise, Indonesian imports must apply for import approval and sales certification. It must be certified by the Indonesian Ministry of Health, the Indonesian Food and Drug Administration and the Indonesian Ministry of Industry to the Indonesian National Standard (SNI); e-cigarettes can only be imported by companies that already have an Importer Identification Number (API) and have received import approval for e-cigarettes issued by the Minister of Trade, which requires a NPBBK with import and export qualifications.

There is a higher tariff, and Indonesia has a higher tariff on < strong class="keylink">e-cigarette products with a 57% tariff and the products are labeled with a tax tag. Nicotine-containing atomizers are considered "processed tobacco" products; nicotine-free atomizers and a range of electronic atomizers are considered consumer products. Like POD oil-filled products (only pay customs fees, imported according to 3C accessories).

Meanwhile, many Chinese factories are migrating to Indonesia's Batam island due to the country's encouragement of tobacco investment, skewed policies and low tariffs. Garindra Kartasasmita, secretary-general of the Indonesian Electronic Cigarette Association's secretary-general, has told that if the target market is still the United States, the United Kingdom, the Middle East and so on, you can build factories in Indonesia's Batam. Batam is designated as a free trade zone where Chinese companies can ship all their raw materials without paying any customs duty and then the products can be exported easily. And so far, there have been factories not only in Batam, but also in Surabaya, Jakarta and Tanggelang, Indonesia.

The door to Indonesia's e-cigarette industry has always been open for Chinese brands. with a population of 300 million and more than 60 million smokers, there are more than 2 million e-cigarette users in the country, mostly young and middle-aged, which is more than a $200 million market size that will continue to grow in the future. From some of the e-cigarette activities in Indonesia can also be seen, Indonesia in the e-cigarette industry to new market heights, the consumer culture is amazing, the control is also relatively loose. The country's 40% youthful population is also destined to be highly receptive to e-cigarettes.

(Indonesian market)