Conversation with SKE and YOVO: Be “Proactive” in Response to Regulation; Future Market Prospects Re

  SKE e-cigarettes are actively expanding into the Russian market, and in response to regulatory challenges, they will adhere to a compliant approach. The Sino-Russian joint brand YOVO has made significant localization efforts but remains cautious about the uncertainty of Russian policies.

【Two Supremes from Moscow】On December 16, the Russian e-cigarette exhibition VAPE CLUB SHOW 2023 grandly opened in Moscow, gathering over 200 brands for a grand event in the industry. As one of the official media partners, Two Supremes engaged in dialogue with e-cigarette brands SKE and YOVO. SKE is among the top three disposable e-cigarette brands in the UK; how do they view the Russian market? How will they participate in the competition? As a new brand co-owned by China and Russia, what are YOVO's views on the future of the Russian market based on its localization advantages?

SKE: Regulation is like a knife that will eventually fall

A representative from SKE e-cigarettes shared their views on the Russian market and strategies to respond to upcoming regulatory challenges.

The representative stated that SKE is currently in the exploratory phase in the Russian market. The market is very active, with a large consumer base primarily consisting of young people. SKE believes this market has enormous potential, saying, "We will not give up easily," he confirmed to Two Supremes.

 | Source: Two Supremes

Regarding the recent intensive regulatory dynamics in Russia, he believes that strict regulatory laws are inevitable, stating, "We expect regulations to become increasingly stringent. Although we will be affected to some extent, we must move towards legalization. Just like a knife that will eventually fall, we cannot avoid it."

In the context of tightening regulations, he expressed confidence in the future market, responding that brands must find every possible way to break through.

“Regardless of whether regulations become stricter, we will do everything we can to overcome various challenges to adapt to market changes,” he mentioned.

However, he acknowledged that gray market products have always been a problem in the market, and it is impossible to avoid them entirely. SKE's strategy is to enhance brand influence and optimize channel operation capabilities to better withstand competition and challenges in the market.

 | Source: Two Supremes

YOVO: Questioning the Future of the Russian Market

Will an e-cigarette brand with both Chinese and Russian genes have more advantages? Can products be better promoted in Russia?

Generally speaking, joint venture brands can better localize their products and market strategies, adapting more effectively to local culture, tastes, and regulations. Localization can increase brand acceptance in target markets.

 | Source: Two Supremes

Two Supremes also engaged with YOVO's Russian general agent Evgenii Ivanov at the event. The brand is operated jointly by Chinese and Russian personnel and promotes through an agency channel model to downstream channels.

Evgenii introduced that YOVO's main product at this exhibition has a resistance of 0.8, with high flavor restoration, primarily targeting Russia and surrounding countries. It is reported that YOVO also began launching screen-equipped e-cigarette products in April and May of this year, receiving high customer satisfaction.

 | Source: Two Supremes

As a new brand entering the market, Evgenii expressed skepticism about the current overall policy uncertainty in Russia. When asked by Two Supremes about his confidence in the future market, he stated that it remains a question mark.