What Kind of High-Growth Market Opportunities Should Chinese Vaping Companies Seek in Indonesia?

In Europe and America, a disposable vape can be picked up and bought easily, but in Indonesia, most of the products displayed in electronic cigarette stores are two core categories: devices and e-liquids, used in combination.

This consumption scenario is often seen in Indonesia. As a unique market, we can see the urban construction of the 90s, yet the electronic cigarette consumption energy of the 21st century.

What did CVIC discover in Indonesia?

(In-depth market research in Jakarta)

There is a strong awareness of independent brands!

The Indonesia e-cigarette market   

The rise of independent brands is a distinct feature of the Indonesian market. There are many brands visible in every channel store. But why are only a few brands performing well in sales?

Recently, the CVIC team conducted in-depth market research in Jakarta, visiting well-known local distributors and other chain stores, engaging in serious discussions with channel owners to gather market information from Indonesia. From channel demands to brand forms, comprehensive research was conducted.

Jakarta has about 2,000 electronic cigarette channel stores, and in areas where traditional retail stores are concentrated, there is a unique landscape. Local electronic cigarette stores typically have simple storefront decorations, with products displayed in a manner similar to electronic products. Most stores are street-side shops.

As the capital, Jakarta's urban construction style resembles that of 90s China, with only 740 square kilometers accommodating over 10 million people, indicating a high density. However, Jakarta's GDP accounts for a quarter of Indonesia's total, approximately 250 billion USD, making it a relatively prosperous economic area.

So, which device brands and e-liquid brands are performing well among most distributors and retailers in Jakarta?

Through research, the following was found:

Top-selling device brands: OXVA, VOOPOO, SMOK, LOST VAPE, UWELL, aspire, foom

Top-selling e-liquid brands: FOOM, OAT DRIDS, HAZE (风), GRPE, POD SALT.

(On-site photos from Indonesia)

Despite the large number of e-liquid brands in Indonesia, with each distributor encountering between 100 to over 500 brands, the brands that sell well are generally the top 20 or so. Some e-liquid brands have also leveraged online influencer advantages to establish themselves as leading brands in offline consumption. It was also found that local e-liquids are generally available in 15, 30, and 60ml specifications, with users typically consuming about two bottles per month at 30ml. The flavor preference leans towards sweetness. The local electronic cigarette users typically prefer to purchase refillable devices paired with their favorite flavors, achieving a cost-effective and flexible consumption goal. The FOOM brand has a high visibility in local e-liquids, and besides producing e-liquids, it also manufactures its own devices, with a broad channel layout. It has already been sold in Indonesia's largest modern retailer, Alfamart, and is continuously expanding into Vape Stores, Circle K, and other modern retailers.

(Top-selling e-liquid brands introduced by local store owners)

In terms of sales, a typical store can sell 100-150 bottles of e-liquid. Some stores can achieve monthly sales of over 400,000 RMB, while the average store sales are around 100,000 RMB.

Devices born for e-liquids represent a strong demand!

The Indonesia e-cigarette market   

In the Indonesian market, it is crucial to choose the right city and growth opportunities. In Indonesia, different cities have different consumption characteristics, and to enter the market, one must first select the right city for market development.

For instance, in terms of devices, there is a significant demand for open devices that allow for refilling in Indonesia. You will find that the number of local e-liquid brands is astonishing, but the number of devices is relatively small. Matching devices to e-liquids perfectly will greatly attract consumers.

Currently, device sales in Indonesia are generally lower than e-liquid sales. Typically, a store sells over 20 devices per month.

Most of these devices have square and round designs, with displays and charging bases. Some devices can even glow at night, making them quite unique. #p#分页标题#e#

(Top-selling device brands introduced by store owners)

It can also be seen that the devices displayed by Jakarta distributors are generally placed prominently at the front of the counter, while others are placed on shelves. After several years of market accumulation in Indonesia, some devices have formed a consumer reputation, gradually establishing trends. However, the concentration of device brands is continuously matching local e-liquid brands to achieve a better consumer experience, and there is still room for development.

Securing counter display space is also essential for entering the local market. Collaborating with top-selling e-liquid brands to develop devices is very necessary, as this may lead to more precise matching.

As Chinese independent brands enter the Indonesian market, in addition to enhancing localization, it is also essential to localize at the channel level. This will make the device market more promising and will be an important breakthrough point. After all, for the Chinese supply chain, the device market is currently the primary focus. E-liquids can only seek localized development in Indonesia.

Some continue to focus on disposables!

The Indonesia e-cigarette market   

Some continue to focus on disposables, while others completely focus on open systems.

Especially in Jakarta, some distributors also stock some disposable brands.

For example, during our visit to a distributor in Jakarta, which has eight stores in Indonesia, we were the only ones to see the ELFBAR and HQD brands on display.

At the same time, in a wholesale store, we also found that disposables were primarily represented by ELFBAR.

In Indonesia, disposables are mostly found in supermarkets and coffee shops, where they perform well among consumers with strong purchasing power.

(Disposable devices)

Imagine, most are open systems, and how rare it is for disposable brands to enter. Distributors believe that the uniqueness of flavors in disposables will likely create potential growth in the future. Especially for local consumers, e-liquids are primarily local, while disposables are mainly Chinese, leading to different flavor profiles.

However, some distributors are entirely focused on open systems and have not accepted disposables in the short term.

Through the market research in Jakarta, CVIC is genuinely working to help Chinese companies establish overseas channels, fostering a sense of "trust."

Local distributors are very cooperative with our research efforts and are willing to share information about top-selling brands and store revenues, which is a rare form of "trust."