Exclusive Interview with Yuoto CEO Cheng Guozuo: Pod-based Vaping Devices Cannot Replace Disposable

At the Dortmund Tobacco Exhibition, Yuoto CEO Cheng Guozuo stated that pod-based and disposable e-cigarettes target different consumer groups, and pod-based cannot replace disposables.<\/p>

On September 15, at the Dortmund Tobacco Exhibition, Yuoto CEO Cheng Guozuo was interviewed by two parties. He believes that pod-based and disposable e-cigarettes cater to different consumer groups, and pod-based cannot replace disposables. <\/p>

Cheng Guozuo told the two parties that Yuoto's new products have improved their core, and some products were not displayed at this exhibition, with plans to launch new products globally later.<\/p>

When asked about Yuoto's popular products, Cheng Guozuo stated that Yuoto's products come in different types, with high, medium, and low puff speeds. Which product is more popular depends on the region of the consumer. He believes that the German market is no different from other European markets; the entire EU is an integrated region, and German consumers' preferences, tastes, and product awareness are almost the same as those of users in other EU countries; however, preferences for product appearance vary by region. He believes this is not core, as these e-cigarette users are new smokers, not loyal electronic consumers; truly loyal e-cigarette consumers pay more attention to flavor.<\/p>

Cheng Guozuo believes that Europe is relatively neutral and inclusive compared to the global market. For example, in terms of e-cigarette flavors, Southeast Asia tends to be strong, China tends to be mild, and Europe is more neutral—flavors are neither too strong nor too weak.<\/p>

Regarding attending this Dortmund Tobacco Exhibition, Cheng Guozuo stated that the purpose of participating is not to acquire new customers but to communicate face-to-face with old customers and maintain relationships.
In Cheng Guozuo's view, overseas e-cigarette exhibitions are becoming less ideal, with the frequency of exhibitions being very dense, sometimes even monthly, and the product differences at exhibitions are minimal. This has led to consumer and channel fatigue.<\/p>

On whether pod-based e-cigarettes will become a future trend, Cheng Guozuo believes that it first depends on the development history of disposable e-cigarettes. Many people regard 2020 as the year of the disposable e-cigarette explosion, which brought about significant changes in the popularity of e-cigarettes that other product forms cannot achieve. Because disposable e-cigarettes have the attributes of fast-moving consumer goods, their viral nature is more pronounced.<\/p>

Cheng Guozuo stated that disposable e-cigarettes offer convenience, while pod-based products differ from disposables in that they do not possess the fast-moving consumer goods attributes or the viral nature of disposables. For white-collar workers and office employees who are always on the go, using pod-based products can be inconvenient, which may lead to reduced usage over time. Therefore, the choice between disposable and pod-based e-cigarettes depends on the consumer group.<\/p>

The disposable e-cigarette industry is becoming increasingly competitive, and Cheng Guozuo believes this mainly depends on industry competition. As the popularity of disposable e-cigarettes increases, competition becomes more intense, leading to lower profits for both brand owners and channel merchants.
What kind of situation will the e-cigarette market face in Europe in the future? Cheng Guozuo believes that the EU is an economic entity, and policies among countries will reference each other. Within the EU, Germany is more representative and influential, so to some extent, the German market is likely to become a barometer for the development of e-cigarettes in Europe.<\/p>