26 ASIAN TRADER 13 OCTOBER 2017 http://www.asiantrader.biz
Follow us on: http://www.twitter.com/AsianTrader Like us on: http://www.facebook.com/AsianTraderFEATURE
E-CIGARETTESLegislation
Value growth slowed in the fi rst
half of 2017, leading to some
value contraction in the
market, as a result of suppliers
and retailers selling o non-
compliant stock at a heavily
discounted rate, ahead of the
20th May deadline.
However, now the legisla-
tion is in place, value sales have
started to stabilize and sales in
the latest 12wks were margin-
ally up vs the previous quarter,
volume sales are also showing
growth, as the market settles
down and retail selling prices
return to normal.
The market has been going
through lots of changes because
of EUTPD, some brands have
disappeared from the market
altogether, whilst others have
been reinvented.
The introduction of tighter
regulations has forced manu-
facturers to take a fresh look at
what they are making and
selling. The result may be fewer
brands but, higherAccording to the latest
insight from Nielsen, the three
most popular vaping flavours
are fruit (28%) followed by
menthol (22.4%) and then
tobacco (21.7%).
The JTI Logic LQD range of
e-liquids caters to this trend
with Strawberry, Cherry, Berry
Mint, Menthol and Tobacco
flavours.
“As a relatively new catego-
ry, retailers are naturally less
well informed when it comes
to vaping when compared to
tobacco,” says Nazir Hussein,
owner of the Lockhurst Foods
& Goods convenience store in
Kings Heath, Birmingham.
“In order to maximise sales,
retailers and their staff must be
knowledgeable about the
various devices available, their
USPs and how they work –
therefore staff education and
training is a must.”
Quite a few of the larger
manufacturers provide such
training and education, and
recently JTI improved its
extensive UK sales force with
training to be able to give
advice to help retailers make
the most of the vaping
category.
JTI has recently upskilled its
salesforce with a focus on the
vaping category, ensuring reps
are able to advise retailers on
everything from the latest trends
to invaluable merchandisingquality products and better
safety across the market which
should instil further consumer
confi dence in vaping products
and drive retail sales.
The vaping market is
continuing to gain acceptance
as a credible alternative to
traditional cigarettes. Public
Health England, along with
other organisations, have
publicly said that e-cigarettes
are 95% less harmful to
consumers than smoking
tobacco.
As the range of brands in the
market narrows, it is hoped that
the quality of o ering to
consumers will become more
consistent.
Recent research commis-
sioned by blu found that the
three biggest challenges for
people buying vaping products
in traditional retail are avail-
ability, visibility and sta
knowledge. “We all need to
work to make it easier for
consumers to get what they
want in order to drive long-
term growth in the category,”
says Jennifer Roberts, VP
Customer Marketing at blu UK.Activity
The capsule and refillable vape
device market has grown 17.7%
in the last year - these are now
the fastest growing devices in
the traditional retail market
with 90% (Nielsen) of UK
vapers using capsule and
refillable products.
JTI holds an 18% share of the
UK Independent and Symbol
vaping market and an 10.8% share
of the overall UK vaping market in
traditional retail (Nielsen).
At the end of 2016, JTI
launched its first refillable
tank device - Logic LQD - ena-
bling retailers to tap into the
biggest segment within the
category.
The Logic LQD bottle
features an advanced refilling
system for easy and precise
e-liquid delivery, whilst
variable voltage control
featured on the device offers a
customisable vaping experi-
ence.Jennifer Roberts, VP Customer
Marketing at blu UK
TOP MERCHANDISING TIPS
Be visible – You can still display, advertise and promote
vaping products in store. Countertop units are a great way
to drive visibility in store.
Be knowledgeable – blu has a range of education leaflets to
help offer advice for retailers so don’t hesitate to contact
your Imperial Tobacco rep for further information.
Stay stocked up – Make sure you’re always fully stocked with
at least two or three of the top brands. Stock at least one
Open System branded range and one Close System brand.
Clearomisers – They are a great way to upsell and drive
additional sales and margin as consumers should change
their clearomiser after every two bottles of e-liquid.
Stock a variety of flavours – Flavour is one of several
significant product appeal factors that influences the
willingness of smokers to try vaping products.