Trip to the 2023 Indonesia Vape Exhibition

Jakarta, with a population of over 10 million, is currently the hub of electronic cigarette consumption in Indonesia, with the potential for millions of smokers to become consumers. The Indonesia Vape Exhibition 'Vape Show Jakarta 2023' is set to officially open in August. 

This Indonesian e-cigarette exhibition will bring together nearly 100 Chinese companies to Jakarta's JIExpo Kemayoran. According to official information from Indonesia, brands like YUOTO, OXVA, MOTI, ELUX, RELX, TIKOBAR, HQD, ESMOO, BECO, Vapesoul, LAMI, AAOK, LANAVAPE, Freeton, PNDUS, aiir, ganabar, Rundu Corporation, TUGBOAT, MR FOG, SUORIN, polobolo, ISOK, FREME, SMORNT, keystone, JBVJS, KENNEDE, Kemai Plastics, FUMOT, DeKang, DODO, ROYAL, VEEHOO, KangerTech, and Xiaosong Corporation are among the numerous brands participating. There will be nearly 100 companies in total, including not only e-cigarette brands and factories, but also many e-liquid companies and members of the supply chain. Notably, ELUX, HQD, and RELX will have larger booths.

Indonesia primarily has an open-system refillable and pod-based e-cigarette market, accounting for 70-80% of the market share. Locals can generally spend around 100 RMB to buy a device and then a few tens of RMB for a bottle of e-liquid, which can last for half a month, making it quite cost-effective.

From this month's analysis and understanding, the Indonesian e-cigarette market is not as easy to navigate as imagined, mainly due to challenges related to taxation. Without local distributors, it's difficult for Chinese brands to enter Indonesia because they need local representation to obtain tax stamps.

Unlike European countries with established regulations, Indonesia is a market with strong protectionist tendencies, requiring cultural integration and relationship building. Local businesses are very cohesive, with their own e-liquids and factories, causing them to question why they should import from China.

To succeed in the Indonesian market, it's crucial to find a way to integrate into the local circles. Meanwhile, the Indonesian market presents a misleading picture – although it has a large potential consumer base, the local purchasing power lags behind. There are also specific traits; to enter the Indonesian market, it's essential to work with local channel partners, as outsiders struggle to gain traction. Overall, there is potential in the Indonesian disposable e-cigarette market, although the current market share for disposables is limited. However, we've noticed that disposable e-cigarettes are more prevalent in places like Bali, whereas open-system devices dominate in Jakarta, Bandung, and Surabaya. Whether disposables can gain a significant foothold in Indonesia remains to be seen.

In addition to the exhibition, we also enjoyed local cuisine and nightlife, reminding us that the world is indeed a beautiful place. For those who have the opportunity, visiting is quite rewarding."