LONDON : The firm "Liberty Flight", a British manufacturer of e-cigarettes is faced with a problem which is however more often associated with handbags than with electronic cigarettes: Counterfeiting.
These imitations of products allowing vapers to consume nicotine liquid instead of tobacco have begun to appear in several markets around the world. Cloned e-cigarettes use cheaper materials and are sold at prices well below what is available on the original market.
« We have a brand and we are well known Said Matthew Moden who founded " Liberty Flight "In England in 2009. He now runs several stores in England and exports his products around the world, according to him" The problem that is currently being posed is the same as with Louis Vuitton ".
The illicit trade in e-cigarettes is on the rise around the world, agencies and regulators say, adding further uncertainty to a fledgling industry bracing for a wave of regulation.
But counterfeiting is only part of the problem. Other tactics used to produce cheaply or illegally include fake batteries and e-liquids containing dangerously high levels of nicotine. Doctors working for British American Tobacco say they have even seen unauthorized e-cigarette versions of their own regular tobacco brands, including Kent and Vogue.
« We see a large number of poor quality products being sold in the market“Said Emma Logan, Director at JAC Vapor Ltd., a Scotland-based E-cigarette company.
Although still a relatively minor problem, experts expect the counterfeit trade to increase as demand increases. Global sales of genuine products were $ 7 billion at the end of 2014 (compared to $ 800 billion for the regular tobacco market) and are expected to reach $ 51 billion by 2030, according to Euromonitor International.
This poses a problem for large tobacco companies, including Philip Morris International Inc. and British American Tobacco, which have invested heavily in e-cigarettes over the past year in an attempt to mitigate the decline in domestic sales. tobacco level. Nikhil Nathwani, managing director of Philip Morris which also owns Nicocigs Ltd., said that the "potential of the e-cig attracts illicit trade and is a real concern" even though the current market is still "relatively small scale. "
The problem is much more serious for the hundreds of independent e-cig makers who are not backed by Big Tobacco. Many say that with all of these low-cost offerings, products that are not tested are gaining momentum in the market and driving down their sales.
Currently the prices of e-cigarettes vary widely and currently are not subject to any real regulation. In the Hampstead Vape Emporium in North London, products on offer range from a simple “peach” flavored e-cigarette at $ 10 to a luxury silver kit at $ 150.
According to executives of e-cigarette companies, in some countries like the United States and Western Europe, a black market for e-cigarette components is starting to develop. The demand for e-cigarette components (battery, clearomizer, etc.) has undergone strong growth during the past year.
« We've seen an influx of cheap liquids from China“Said Michael Clapper, International President of Electronic Cigarettes International Group.
The authorities are currently very vigilant about the counterfeit e-cigarette market. According to a survey by the Standard Trading Institute, in 2014, more than half of the 433 local government authorities in England were made aware of the risks associated with poor quality or counterfeit e-cigarettes. A recent alert was sent to residents in the London Borough of Southwark on counterfeit e-cigarettes, it was stated that “most currently available products may not be secure »
One solution to the growing threat of illegal trade is stricter regulation. The European Union Directives come into effect next year and aim to standardize many features of e-cigarettes sold across the region, including a lowering of the maximum nicotine content of the liquid and a reduction in the size of the e-cigarettes. cartridges.
EU officials say the new regulation is designed to improve the safety of e-cigarettes and reduce the number of counterfeit, low-quality or dangerous products in all EU countries.
« The Commission does not believe, however, that the new measures will have a significant effect on prices and there is no evidence that the provisions will contribute to the increase in illegal trade.Said Enrico Brivio, spokesperson for the European Commission for Health.
But many e-cigarette makers say carrying out onerous safety checks would increase the prices of their products and could allow the black market to flourish.
« The minute you take to make an original product is more expensive, and that's when the counterfeit market emerges. Said Ray Story, head of The Tobacco Vapor Electronic Cigarette Association. For him all this is only " the tip of the iceberg. »
This article was originally published by our partner publication Spinfuel eMagazine, For more great reviews and, news, and tutorials _ **
This article was originally published by our partner "Spinfuel e-Magazine", For other news, good reviews or tutorials, click here.
Initial source : wsj.com
