Western Vape Liquids Looking East

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As European and North American markets approach saturation, a number of western e-liquid manufacturers have begun pushing into Asia, especially China. Tobacco Asia talks to two prominent European companies that see bright futures in the East.

By Thomas Schmid

China is acknowledged as the original inventor of e-smoking and today the country is without doubt responsible for producing the vast majority of all vaping devices circulating globally. Countless companies primarily centered in the southern city of Shenzhen consistently earn kudos for coming up with new, ground-breaking designs and technological advancements that elevate vaping to ever loftier heights.

But… China and by extension most of the rest of Asia are not necessarily known as production hubs for the world’s best e-liquids. That honor goes elsewhere.

Laboratoire Lips France

The fine French art of creating e-juice

“How many perfumers are there worldwide? And how many of them are making e-liquids? We are in the enviable position that our company founder, Cédric Merino-Riocher, is a trained perfumer who is now dedicating his skills to creating e-liquids. As far as I know, he is one of a kind globally.”

This quote from Aurélie Séchet, market director for Asia at French e-liquid company Laboratoire Lips France, is more profound than it may appear at first glance. It illustrates the fact that devising an innovative vaping liquid can be considered an art form, simultaneously drawing on the combined skills of a fine-nosed perfumer as well as an experienced chef. It is a matter of selecting the right base ingredients in correct proportions to derive an appealing recipe.

In addition, the careful layering of various aromas and flavors imparted in the final product is just as crucially important. They all must complement each other if a harmonious whole that truly stands out is to be achieved. In this regard, Séchet’s boss (who probably is a great cook, too; all French are) quickly succeeded in transforming Laboratoire Lips’ range of e-liquid brands into some of Europe’s finest and trendiest.

A natural decision: venturing into China

With that in the bag, and European markets approaching saturation, it was only a matter of time before Laboratoire Lips began looking east, particularly to China. While China remains unchallenged as the manufacturing hub of the globe’s most sophisticated and technologically advanced vaping devices, the country (and Asia in general) is not necessarily known for its excellence in creating e-liquids. There are only very few labs around, and those that do exist usually shell out comparatively simple, products.

Laboratoire Lips’s very own “Big Leap” therefore constituted a quite natural decision. The company made its Asia debut at this year’s IECIE in Shenzhen, and according to Aurélie Séchet customer interest turned out to be phenomenal. “We brought brand new experiences to Chinese vapers, most of whom had never before tried any liquids that are so complex and sophisticated [as ours].” And what an astoundingly broad portfolio it is: the company’s Lips Premium brand lures with an astounding 67 flavor profiles, while SuperVape offers 36 choices. Even the firm’s still very young nic salt brand, Salt E-Vapor, can convince with 11 different taste sensations.

Who’s filling those pods?

But while individual end-consumers certainly are indispensable for driving retail sales, Laboratoire Lips also banks on OEM business; or rather, the need of Chinese pod manufacturers for a reliable and innovative e-liquid supplier.

“We must not forget that currently more than 90% of pods in the global market are actually made in Shenzhen. But not the liquids. These pods need to be filled,” explains Séchet. She nevertheless concedes that taste and aroma preferences can vary considerably between nations and cultures, an important marketing aspect for any e-juice company looking to become active across continents. “They are memories developed during childhood and largely hinged on [regional] diets and environments. Flavors or aromas that are popular in one country may not necessarily go down too well in another.” But, Séchet has also observed that “generally speaking, Asians are more flexible and tolerant than Europeans when it comes to accepting new taste sensations.” To successfully set a foot in Asia, an e-liquid brand, therefore, ought to “push the limits” while at the same time being adaptable to and respectful of local differences.

Elda Ltd.

Croatian firm takes on Asia

In 1981, entrepreneur Mario Darenić founded a household electronics-dealing family business in the small town of Nova Gradiška. Growing and maturing from these humble beginnings, the company shifted its focus on electronic cigarettes and vaping liquids in 2008, helping to pioneer these newly emerged sectors in Europe. Today, Elda Ltd. is regarded as one of the leading e-juice manufacturers in the world and additionally also produces its own range of sophisticated vaping and pod devices.

As such, it was only a matter of time for the outfit to eventually also prospect for new markets in Asia. One of the most important aspects of successfully breaking into regional markets concerns local taste and aroma preferences, of course. “It is crucial to explore the preferences of vapers in the vastly different Asian countries and to subsequently develop flavors that completely satisfy their needs and wants,” explains Elda’s sales manager, Ines Kovačević.

Adjusting to Asia’s taste preferences

These preferences often tend to be connected with cultural traits and habits. ”For example, this year we exhibited in Bahrain for the first time and for that occasion especially created a rose milk-flavored vaping liquid, which was very well received.” Meanwhile, the flavors that peaked the most buzz at the recent IECIE in Shenzhen were complex fruit combinations with higher nic salt percentages.

Yet apart from China, there also are Japan, India, Korea, the Middle East… and Elda is interested in each and every one of them. “That’s why we are attending all of the bigger vape expos in those regions,” asserts Kovačević. “But we have to admit that the Middle East remains a challenge for us because of the very complex importing process for vaping products into some of those countries.” Attending the Shenzhen expo, on the other hand, has always been a yielding experience for the company.

“We have been at IECIE for the last few years and every time return home with excellent feedback and some great deals,” says Kovačević, adding that her company is “happy to be recognized” not only as a leading European OEM manufacturer but increasingly also for its proprietary e-juice brands. “The most recent brand we presented at IECIE was our Glam Vape line with 14 magnificent flavors imparting rich aromas and delicious flavors.” Some of these are now also available with nicotine salts in the company’s Izy Vape disposable pod device.

Asia-friendly products “made in Europe”

“All of our [e-juice] products are made from highest-quality ingredients and we also put an accent on visual characteristics, as our in-house designers are taking care of every specific detail on the packaging in order to make it different and very eye-catching,” Kovačević elaborates. Another advantage Elda can offer to its business partners is very competitive pricing for its OEM products and proprietary brands.

And the “Made in Europe” moniker seems to carry considerable weight, too. “We have some customers [in Asia] who actually insist on having that pointed out on the packaging because European products are reputed to be more trustworthy [than local ones].” Kovačević elaborates. She reiterates how important it is for Elda to constantly keep abreast with Asian customers’ expectations. “We strive to visit as many markets as possible, meeting new people involved in this industry; and with every encounter, we bring something different back home, which ensures that we are able to adjust our products to our customers and make them user-friendly for each specific market.” That approach, she asserts, makes Elda’s brands truly “Asia-friendly” and lets them resonate with local customers.

“We are sure that in the future our annual sales in Asia will reach almost 50% of our current global sales volume,” forecasts Kovačević. Talk about seeking fortune in the East.

California Juicing

European companies certainly have become exceptionally adept at creating amazingly innovative e-liquids. But North American labs, predominantly located in California, are just as good at it. And like their European counterparts, they have started wanting a slice of Asia, too. Iconic brands like Chubby Gorilla and Mad Hatter Juice made a strong showing at this year’s IECIE. Meanwhile, Californian outfit The Mamasan appeared to even have the perfect name – though unintentionally - for establishing a presence in the region. Although none of these companies agreed to an in-depth interview with us, Tobacco Asia was at least able to squeeze a couple of comments from The Mamasan’s owner, Ryan Chalmé.

“We did amazingly well at the Shenzhen show, not only because of our eye-catching, Asia-friendly brand but also because our flavor profiles work exceptionally well with Asian taste buds. It was our first exposure in the Asia-Pacific market and we believe [that] The Mamasan has a good chance to become one of the favorite premium US e-liquid brands in Asia,” Chalmé said. “All our [current] nine flavor profiles are doing well [in Asia], and so far the top-3 sellers are ‘Purple Cheesecake’, ‘Graham Slam’, and ‘ASAP’.”