Specifically, according to two new Finance Minister Regulations (PMK) on the recommended retail prices of tobacco products recently issued by the Indonesian government, the regulations will take effect from January 1, 2025. Among them, the second regulation PMK 96/2024 explicitly involves the adjustment of the recommended retail prices of e-cigarettes and other tobacco products. According to this regulation:
The minimum price of heat-not-burn tobacco cartridges (HNB) is adjusted to 6,240 rupiah per gram (about US$0.4), an increase of 6.01% over the price in 2024.
The minimum price of open e-cigarettes is adjusted to 1,368 rupiah per milliliter (about US$0.1 or US$0.09, slightly different from different sources), an increase of 22% or 22.03% over the price in 2024 (data from different sources are slightly different, but the increase is consistent).
In addition, the minimum price of cartridge-type electronic cigarettes has also increased, with the price of each cartridge adjusted to 41,983 rupiah (about US$2.6), an increase of 5.99% from the price in 2024.
These price adjustments are part of the Indonesian government’s regulation of the tobacco products market, which aims to control the consumption of tobacco products through price leverage, protect public health, and may help reduce the circulation of illegal tobacco products.
GUUTUU adjusts its product strategy. In the face of price increases, GUUTUU considers optimizing its product portfolio, launching new products that better meet consumer needs, or enhancing its competitiveness by improving product quality and taste. At the same time, it can also consider adjusting its marketing strategy to attract consumers through promotional activities, coupons, etc., to alleviate the sales pressure caused by price increases.
In addition, GUUTUU strengthens cost control. In the context of rising prices, cost control is crucial to maintaining profit levels. GUUTUU can reduce costs by optimizing production processes, reducing raw material costs, and improving production efficiency, thereby ensuring that a reasonable profit margin can be maintained despite price increases.
Finally, GUUTUU pays attention to market dynamics and consumer feedback. Price increases may have an impact on consumer purchasing behavior. It is necessary to pay close attention to market dynamics and consumer feedback, and adjust sales strategies and product strategies in a timely manner to adapt to market changes. At the same time, it can also actively communicate with consumers to understand their needs and expectations, and provide strong support for future product development and market strategies.
Tags: ”HNB and open e-cigarette price increase, Indonesian e-cigarette price new regulations, adjust sales strategies and product strategies, guutuu vape