Chinese E-cigarette companies seek opportunities from E-cigarette ban in Malaysia

" With Malaysia’s latest smoking ban including e-cigarette at the beginning of the year, Malaysia’s not-so-new e-cigarette market seems to have re-visited business opportunities for Chinese e-cigarette companies. "

The e-cigarette ban has initially been “bad” news, why would it become a “good” for e-cigarette companies? ”

First, Malaysia’s regulations are vague. The inclusion of e-cigarettes in the smoking ban means that e-cigarettes are moving closer to the direction of “tobacco control.” Next, relevant policies and regulations will be introduced to regulate and supervise e-cigarettes. In a sense, this is another manifestation of “legalization of electronic cigarettes.” ;

Second, Malaysian Deputy Minister of Health Lee Boon Chye pointed out before the ban that “the government is drafting new legislation to regulate e-cigarettes”;

Third, many people in the e-cigarette industry in Malaysia have reported that they are likely to legally use electronic cigarettes this year and impose taxes on nicotine smoke oil;

Therefore, in light of various news, Malaysia’s regulation of e-cigarettes means that the government’s “recognition” and “positioning” of e-cigarettes should be “regulated” and “taxed”.   This is definitely “good” news for domestic e-cigarette companies.

VPXSL.com contacted Elton, the head of Vape News Malaysia, the authoritative media of e-cigarettes in Malaysia, and hoped that through his sharing, he would be able to take a closer look at the development of the e-cigarette market in Malaysia.

Elton is the principal person in charge of Vape News Malaysia, often traveling at major e-cigarette exhibitions. In addition to being an essential promoter of the e-cigarette industry in Malaysia, Vape News Malaysia is also one of the main channels for e-cigarette users in Malaysia to understand products, brands and international information.

Elton first told VPXSL.com that the new smoking ban would not allow the use of nicotine in public places, indoors, restaurants and cafes.

Although some places in Malaysia even prohibit the sale of nicotine-containing tobacco oil, most areas can still be sold normally. “We don’t limit the concentration of smoke oil to 20mg as in the EU, and many Malaysian manufacturers produce 35mg to 50mg of nicotine salt oil,” he added.

Regarding to user habits, Elton said:

“The market is changing, closed-type small vaping is becoming more and more popular, but traditional vapers still prefer to use open-type vaping devices that can be refilled with oil. At present, the Malaysian market is very popular with small vaping devices. About 90% of all physical stores are small vaping products and nicotine salt oil. The once-popular big vaping devices currently account for less than 10%. ”

At present, the Malaysian market is very popular with small vaping devices. About 90% of all physical stores are small vaping products and nicotine salt oil. The once-popular big vaping devices currently account for less than 10%. ”

“The mixing of flavors is very important because Malaysia is different from China. As everyone knows, Malaysia’s smoke oil tastes sweeter and cooler, which will be a problem for many Chinese manufacturers to enter the Malaysian market.”

“Because Malaysia is the second or third largest producer of smoke oil in the world, we have a lot of choices. Users are used to the sweet flavors that contain more mint. Therefore, China’s closed-type cartridges For us, it tastes not so good, and there is a lot of room for adjustment.”

Elton revealed to VPXSL.com that the “disposable small vape” in Malaysia is not as popular as it’s in China. E-cigarette users prefer closed and oil-filled small vaping equipment.

The closed-type retail price is above M.$150 (about ¥245) including one battery rod + 2 cartridges, while the refillable price is about M.$90 to M.$140 (about 146 to ¥228). In the meantime, the one-time cigarette is about M.$30 (about ¥49). The most popular brands are Rex, NCIG, and Nanostix.

What should pay attention to when entering into Malaysia’s small vaping market, Elton said that for open-type, refillable small vaping devices the exterior design and handling are crucial. For closed-type small vaping device, the design is not a priority for consumers.

Besides, VPXSL.com also asked about the policy issues that Chinese companies are most concerned about. Elton said: “The Malaysian government will formulate regulations at the end of this year. As for the specific time, we are not sure, but overall the attitude should be positive. The government will not ban the use and sale of e-cigarettes but may levy taxes. ” “The only question is whether the government only allows tobacco companies to sell their products. This is what we are most worried about. However, everything depends on the end of the year. We hope that government tax on e-cigarette products like Indonesia does, so that we can remain in the e-cigarette industry.”

On the other hand, One Chinese e-cigarette manufacturer HCIGAR has also begun market layout in Malaysia.

VPXSL.com has learned that Hai Shige is currently deepening the operation of the e-cigarette market in Malaysia, creating products exclusively for the region, and operating the new brand akso, and enhancing the brand image there.

HCIGAR said: “The regulations will further standardize the industry standards. It is not clear about the rules. At present, Akso is in the brand building period. For the overall infrastructure, the distribution channels are still in the cold start period.” It is reported that HCIGAR’s turnover reached ¥300 million last year. Malaysia accounted for 26.7% (about $80 million), and its monthly sales exceeded 100,000 sets.

In general, although the e-cigarette regulations in Malaysia are pending like “the sword of Damocles hanging over the head”, it still cannot affect the determination of Chinese companies to enter the country’s e-cigarette market.

In addition, the popularity of small vaping products has also given new opportunities for Chinese brands. Unconfirmed news indicates that the sales of Rex in Malaysia have exceeded 20 million. From HCIGAR to Yue, perhaps Malaysia will soon become the battlefield for Chinese e-cigarette companies. The new cake of Malaysia, how are you ready to eat?

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Asun
Asun@Vapebiz.net
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