Aug 22, 2023

Last year, when it comes to the Indonesian e-cigarette market and industry, many people were blind eyed, with factories, certificates, sales, suppliers, and so on all in a mess, unsure where to start. But by this time of year, there are already some operational models for reference, and everyone can feel the stones and cross the river.

Mode 1: Establishing a factory on site, early route, high investment, and winning through self control

Due to the large investment, many small and medium-sized enterprises have turned their backs on the Indonesian market. Many large factories with resources, either under pressure from customers or attracted by Indonesian tax policies, have already invested and built factories in Indonesia, such as Simore, Jinjia, Meishenwei, Changhan, Honeycomb Factory, etc.

A local certification agency based in Indonesia stated that with the tightening of Indonesian e-cigarette policies, it will become increasingly difficult to enter the Indonesian e-cigarette market in the future, and its agency can help enterprises quickly land, establish factories, and obtain relevant qualifications.

3-1690612021

Mode 2: Indonesian small groups, emerging routes, low investment, victory in speed and flexibility

There are some differences in the operation of different people on the route of Mode 2.

Some are team aggregates, which bring together companies responsible for different functions such as logistics, e-commerce, and production to provide customers with a one-stop solution.

To sum up, in Mode 2, overseas enterprises do not need to directly invest in building factories, but rely on local overseas factory resources to achieve product production and sales. This is similar to borrowing chicken to lay eggs, and holding a group for heating is the core of its operation.

Obviously, Mode 2 is more suitable for small and medium-sized enterprises to go overseas.

You May Also Like