Interview with WIPO: Large-Puff Vaping Devices Dominate the Russian Market; The Path to Customs Clea

  TwoSupremes interviewed a representative of the vaping brand WIPO, who expressed optimism about the Russian government’s vaping policies while also noting that the Russia-Ukraine war has brought uncertainty to the market. He explained in detail the challenges WIPO faces in the Russian market, including responding to policy changes and the complexity of formal customs clearance procedures.

【Reported by TwoSupremes from Moscow】On December 16, VAPE CLUB SHOW 2023, a major Russian vaping expo, opened grandly in Moscow. More than 200 brands gathered for a major industry event. As one of the official media partners, TwoSupremes spoke on site with Sun Hairui, a representative of vaping brand WIPO, gaining deeper insight into the company’s view of the market and its strategies for responding to policy changes.

Sun Hairui told TwoSupremes that he is optimistic about the Russian government’s current vaping policies, emphasizing that compared with China, the Russian government is more inclined to implement regulations with a transition period. As a result, he remains confident about the future development of the Russian vaping industry.

However, he also mentioned the uncertainty the ongoing Russia-Ukraine war has brought to the overall market. He observed that Russia is under geopolitical pressure, which may have left some policies in a “suspended state” rather than being truly implemented.

He believes that after the war ends, the vaping industry is still expected to maintain its growth momentum in Russia. “I wouldn’t say the trend here is completely stable, but I feel the market will return to normal after the war ends.”

Since the beginning of this year, Russia’s overall vaping policy has moved in a more restrictive direction. As compliance becomes increasingly strict, tariff revenue is naturally a source the government values, especially for vaping products exported from China to Russia, which, as he noted, “can also increase tax revenue.”

But for brands operating in the Russian market, formal customs clearance is a necessary but difficult path. Using WIPO as an example, he said, “We have also chosen the formal customs clearance route, but we have to admit that it is indeed a cumbersome and time-consuming task. Our first batch of formally cleared goods took nearly three months, mainly because the procedures and documentation were extremely complicated.”

In the vaping industry, a three-month cycle is far too long for a vaping product. Products in the market are constantly iterating, and major changes may already have taken place.

“New products may already have emerged while we are still handling the paperwork,” Sun Hairui said helplessly.
 

On December 1, the Russian government required all vaping products circulating in the market to fully implement the “Honest Mark” labeling system. He said this has had a significant impact on local Russian distributors. Looking at Moscow alone, purchase orders have “declined somewhat,” and the quantity previously purchased by those distributors has basically been cut in half.

“They are also waiting to see what happens, because there is still no specific timeline for implementation of Russia’s new policy,” Sun Hairui said.

In discussing market competition, he emphasized respect for Russian regulations and pointed out that customers taking a wait-and-see approach are more inclined to buy older products that are already stable in the market, such as better-known brands including ELFBAR, LOST MARY, PUFFmi, and waka, all of which rank among the leading brands in the Russian market.

Sun Hairui specifically mentioned waka’s “rise” this year. According to him, waka suddenly took off around May or June this year and has done a very good job managing the market atmosphere. Based on his observations, waka has experienced out-of-stock situations across Russia. “Customer demand is growing, and scarcity increases value.”

Perhaps waka’s rise is also inseparable from the popularity of high-puff-count products in Russia. He further explained: “Some people may think a 10,000-puff vaping device is too strong and may feel uncomfortable using it. But Russian consumers prefer vaping devices with higher puff counts.”

Speaking about market changes, he again stressed respect for Russian laws and regulations, saying that as long as companies do not cross red lines in business operations, they should not run into major problems. WIPO also discussed its strategy for responding to market changes in depth, especially amid the uncertainty that policy changes may bring, saying the company will remain flexible and adapt to market shifts.

Sun Hairui said WIPO will continue promoting new products in the future and, while complying with Russian regulations, will strive to expand its market share by using formal customs clearance channels and cooperating with major distributors. #p#Page Break Title#e#

Related reading:    【1】 Russia vaping expo opens with highlights from brands such as ELFBAR, HQD, and INFLAVA   【2】 Have screen-equipped vaping devices become a ticket into the Russian market? Brands say products without screens won’t sell

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