WARNING

Countries in Southeast Asia have recently enacted regulations to ease access to the e-cigarette market. For example, the Philippines' proposed e-atomisation bill, set to take effect in May 2022, removes restrictions on flavours and online advertising, and the proposed measures also allow for advertising and promotion of products such as e-atomisation and HTP at point of sale, direct marketing and on the internet. The implication is that the Philippines is very lenient in terms of flavours and online sales.

This shows that the Southeast Asian market will be the place where various e-cigarette brands will compete one after another in the coming years. An emerging global market of 600 million people for e-cigarettes, and specifically allowing e-cigarettes to be sold online!

An emerging global market with a population of 600 million people, and a special permission for e-cigarettes to be sold online!

Southeast Asia has 600 million people, more than 450 square kilometres, covering 11 countries, of which Indonesia, Malaysia, the Philippines and Vietnam are relatively "friendly" and are also the hottest emerging markets for e-cigarettes in Southeast Asia. It is worth noting that some countries in Southeast Asia, but also specifically allow the sale of electronic cigarettes online. These major e-commerce platforms casually sell electronic cigarettes. Such as Vietnam Tiki comprehensive B2C e-commerce website; Indonesia's Blibli B2C platform; Indonesia's representative C2C online trading platform BukaLapak; the main focus of the Indonesian market Tokopedia e-commerce platform; Southeast Asia's larger Lazada online shopping site, covering Indonesia, Malaysia, the Philippines and Thailand and other users; Southeast Asia and Taiwan's e-commerce platform Shopee, which radiates to more than 10 markets such as Singapore, Malaysia, the Philippines, Thailand and Vietnam.

According to Euromonitor, the total market for electronic fogging in Southeast Asia is expected to reach US$ 766 million by 2023, equivalent to more than RMB 4 billion.

About the Malaysian market

Malaysia's e-cigarette policy is still being refined and e-atomised products can be sold and used. However, it is not very nicotine friendly and Malaysia prohibits the sale, distribution or importation of e-atomised products containing nicotine in the market and they can only be sold by licensed pharmacies or registered doctors.

When it comes to the market, Malaysia has a very high share of the e-cigarette market, which is also much higher than that of traditional tobacco. A study by the Malaysian Electronic Cigarette Chamber of Commerce (MVCC) showed that the e-cigarette industry in Malaysia is worth RM2.27 billion (approximately US$558 million), representing a 42% share of the overall tobacco market - more than illegal cigarettes (37%) and legal cigarettes (21%) ) and is a booming industry. The lucrative e-cigarette industry will continue to grow as the number of industry players increases.

Currently e-cigarettes are not highly taxed in Malaysia, with a 10% tax on the retail price of all types of e-atomised products, which imposes a specific tax of RM0.4 per millimetre of liquid. However, Malaysia requires imported e-cigarettes to pass SIRIM verification in August! The certification process is submission of application - documentary review (test report must be submitted) - factory audit - certificate evaluation - issuance of certificate - purchase of sticker - post certification surveillance audit.

In this regard, LANAVAPE has been the first to set up the Malaysian market, and now LANAVAPE has subsidiaries, directly-managed shops and a large number of franchise agents in Malaysia. LANAVAPE is also the first brand to have the SIRIM certification in Malaysia. As early as 2020, LANAVAPE has been promoting the brand in Malaysia and radiating to the surrounding countries in Southeast Asia. Currently for the South East Asian market, LANAVAPE also holds a large amount of weight.

This is a crucial step for LANAVAPE to capture the Malaysian vape market.