According to a comprehensive research report released by the think tank MRFR, the global smokeless tobacco market is expected to reach $28.98 billion by 2030. At present, the mainstream market of electronic cigarettes in the world is the United States, the United Kingdom, Europe, Russia and so on.
However, as the competition in the e-cigarette market intensifies, the head distributor in the United States said in an interview with two supremes that the choice of products only looks at “price.” The competition within the mainstream market is becoming increasingly fierce, and the cost of market development is rising. Therefore, the marketing strategy of the brand gradually appears the trend of expanding to new regions. Logistics, freight forwarding companies as a key channel for electronic cigarette products from manufacturers to final consumers, its regional layout, route procurement and other trends will become the development potential of the emerging market “color agent”.
Recently, the reporter interviewed a number of e-cigarette logistics companies and freight forwarding companies at the Dubai e-cigarette Exhibition to obtain the latest trends and information in the industry, and understand the insights and experience of logistics providers on the e-cigarette market.
2023 The United States and Europe are still important markets, and the logistics manufacturers have differentiated and in-depth operations
As an emerging industry, the initial freight forwarder of electronic cigarettes relies on the mature transportation mode of other products in the mainstream market. Therefore, many logistics manufacturers said in the interview that their first e-cigarette freight forwarding destination is the United States, and since then, they have officially opened the e-cigarette freight forwarding business with the U.S. market as the starting point and core.
At the e-cigarette show in Dubai, when logistics providers were asked about the market development strategy in 2023, the head logistics companies from HaoSpeedong, Tianteng International, who did not want to be named, said that their 2023 will still take the United States and European markets as the core, and continue to deepen on the basis of the original business advantages.
Qian Liqun, co-founder of Haolutong Logistics, says the strength of its US and European operations lies in the operation of dedicated lines. “The most important and initial e-cigarette transportation market is the United States.” Qian Liqun said that in order to solve the problems of long-distance transportation and no local advantages, the special line form has gradually developed, not only to provide more comprehensive services, but also to promote the maturity of e-cigarette logistics and transportation business. For the future development, the ultimate development goal of Haolutong is to do professional services in the dominant market, to do end-to-end, vertical integration services.
The relevant staff of Tianteng International said in an interview that its main business model is “designated freight forwarder”. The designated freight forwarder mainly serves the consignee, mainly to the buyer’s requirements, the price is relatively high, and the customers are mostly dealers and brand owners. Tianteng International plans to participate in a large range in 2023, in addition to the mainstream market of the United States and Southeast Asia, other markets are also “looking up”.
The mainstream market difficulty plus the Middle East market has become a key target
With the global regulation of e-cigarettes becoming stricter, the frequency and intensity of customs enforcement in the mainstream market has increased, and the challenges faced by logistics and freight forwarding are also greater. Haolutong Logistics and Tianteng International said in an interview that the current difficulty is the inspection of customs in various countries.
In the United States, the world’s largest e-cigarette market, check whether the product is taxed. Qian said that the uncertainty brought about by the inspection and the subsequent storage costs have become the biggest challenge for US customs. In the UK market, the main inspection is the number of large and contraband, need to confirm the risk with the customer in advance to transport.
When asked about the business plans of various logistics manufacturers for emerging markets in 2023, Tianteng International said that it is expanding the South African market. The Middle East, relying on the Dubai exhibition, is the most mentioned term in the development plan of emerging markets. The logistics companies surveyed are optimistic about the development of the Middle East market. Logistics manufacturers, who did not want to be named, said that they have now opened up Dubai, Saudi Arabia and other regional routes.
Middle East map
Qian Liqun believes that although their business in the Middle East is average in size, the Middle East market is relatively easy to develop. In particular, Dubai, as a distribution center in the Middle East, can radiate to the entire Middle East region, providing a broad space for the development of logistics business. As a result, they see considerable demand in the Middle East market and see it as an attractive growth opportunity.
Qian Liqun said that Dubai’s e-cigarette logistics market is already mature, but 80% of the market is occupied by gray Pass.
Likewise, Tianteng International has a similar view of the Middle East market. They believe that Dubai is the best choice to enter the Middle East market, but at the same time Dubai, as a blue ocean market, needs to consider the degree of openness of the surrounding region, so that it can radiate to the entire Middle East region. However, if the surrounding area is not open, the Dubai market still needs further investigation and research.