Interview with SOAK: Policy Direction Hard to Predict, Brand to Launch Self-Developed E-Liquid Next

  Dmitry, the representative of the SOAK brand, shared the challenges and future plans for the Russian market at the Moscow E-cigarette Expo, emphasizing the need to actively respond to regulatory policies, launch unique e-liquids, and increase global expansion investments.

On December 16, at the VAPE CLUB SHOW 2023 in Russia, we had a deep discussion with Dmitry, the representative of the e-cigarette brand SOAK, regarding the development prospects of the Russian market and the brand's future plans.

Recently, the e-cigarette regulatory policies released by the Russian government have attracted widespread attention in the industry. Dmitry admitted that predicting the direction of these policies is very difficult.

 SOAK products | Source: Two Supremes

He stated that in March next year, a ban on e-cigarette additives will be implemented in Russia, and the pace of regulatory tightening is shocking. Unlike other countries, Russia has not reduced taxes but has increased them tenfold, posing a significant challenge to the industry. However, he mentioned the example of Turkey, where despite the ban on ENDS (electronic nicotine delivery systems), e-cigarette shops continue to thrive, indicating that even under regulatory pressure, there is still enormous market potential for e-cigarettes.

Despite the regulatory uncertainties, Dmitry remains optimistic about the prospects of the Russian market. He believes that the Russian e-cigarette market is still expanding, with new products emerging continuously, and the entire industry is still in a phase of expansion and growth.

Regarding SOAK's future plans, Dmitry revealed that the brand is considering launching a new product line in 2024 and 2025, which may include screen designs. He emphasized that the brand insists on not following the crowd, focusing on unique designs and independent research and development.

Dmitry mentioned that SOAK will launch a new product line in March next year, all using the brand's self-developed e-liquids, blending different natural flavors to provide a unique smoking experience.

This innovative process has received support from a Chinese team. To meet the taste differences of consumers in different regions, SOAK will customize unique flavors based on the needs of users in the Russian region.

Dmitry highly praised Chinese e-cigarette brands, stating that 99% of e-cigarettes are manufactured in Shenzhen, and Chinese brands have strong competitiveness in the market. He believes that customers have the right to choose brands, and as long as it does not affect SOAK's customers, he is open to Chinese brands.

Dmitry introduced the brand's market strategy, developing through agency channels in Europe, the U.S., the Middle East, and other regions, increasing investment based on the performance of different regional markets. Logistics plays a key role in market expansion, and SOAK will invest heavily in equipment and logistics to ensure that products can reach target markets quickly and smoothly.

"We will allocate $1 million for equipment and $1.5 million for logistics. This will still allow us to achieve profitability. In Turkey, the logistics cost for one piece of equipment is $23." Dmitry said.

Finally, Dmitry pointed out that more and more people are recognizing the help of e-cigarettes in quitting smoking, and his personal experience confirms this. After smoking traditional cigarettes for 20 years, he switched to e-cigarettes after quitting. This also reflects the potential value of e-cigarettes in aiding smoking cessation.

At this expo, SOAK looks forward to achieving greater success in future market competition.