The Philippines is a US$200 million e-cigarette market with an annual growth rate of mid-teens. Until recently, the controversial Flava brand claimed to be the market leader in the Philippines e-cigarette market. Flava’s rise & fall sets a textbook example that is worth exploring in details.
What kind of vape is Flava?
Unlike most vape brands, Flava vape’s primary focus is on the sensory experience delivered through flavors and aroma rather than nicotine delivery or vapor volume. Flava, presumably derived from the word Flavor, aims to indulge vapers in a diverse range of flavors. The emergence and runaway growth of the Flava vape is a testament to the “flavor trend” that is redefining the global vaping industry. An increasing number of vapers across the world are enticed by a broad palette of flavors more than any other aspect of vaping.
Over the past few years, Flava vape has attracted Filipino consumers in large numbers due to a variety of reasons:
– Wide range of flavors: Flava vape’s core appeal is in its wide range of flavors, sparking adventure and discovery. There’s a Flava vape for every taste bud, from unique and appealing flavors to fruity mixtures reminiscent of tropical paradises. This diversity of flavors attracts a broad audience, especially younger consumers, and encourages experimentation and fosters a vibrant community of flavor enthusiasts. According to the Flava enthusiasts, each puff delivers a burst of flavor, enveloping the palate in a symphony of tastes and aromas. Whether savoring the sweetness of ripe berries or relishing the creamy richness of custard, Flava vape enthusiasts delight in the complexity and depth of their chosen flavors. Offering sweet and dessert-inspired flavors, such as Taro Ice Cream, Cantaloupe Lychee, Watermelon Smoothie, Chocolate Ice Cream, Gummy Bears, and Bubble Gum, has been part of Flava’s marketing strategy. However, this very strategy also raised regulatory concerns due to their appeal to minors.
– Customization: Flava’s customizable nature adds another layer of appeal. Refillable Flava users can tailor their experience by adjusting temperature, airflow, and coil resistance to fine-tune the flavor profile to suit their preferences. This option to personalize the experience fosters a sense of ownership and creativity, further enhancing the enjoyment of Flava vapes.
– Affordability: Flava products are often more affordable than other major brands. The brand’s ability to import products from China at a lower cost – potentially evading taxes – allowed Flava to offer competitive pricing. Disposable Flava vapes or pre-filled Flava pods cost around ₱200 to ₱400 (US$3.5 to US$7), while refillable or premium Flava devices costs ₱1,000 to ₱2,000 (US$18 to US$36). Prices vary based on the flavor, nicotine strength, and retailers and substantial price discounts (from the representative prices noted above) are common, especially on the online platforms.
– Aggressive Marketing: Flava has utilized social media influencers and celebrity endorsements to build a strong presence, making their products trendy and desirable among younger audiences. These marketing strategies have helped the brand grow rapidly in the local market. Flava Vape has collaborated with social media influencers, including Lilac Sison Tayaban, who promoted the brand through her business,”Lilacs Vape Shop.” The use of influencers and celebrities in their marketing campaigns, especially on social media, played a significant role in Flava’s rapid rise. However, this strategy led to legal issues due to promoting vape products, mainly to underage audiences, which violated Philippine laws.
– Convenience and Availability: Flava vapes are widely available in physical stores and online platforms in the Philippines. Their accessibility adds to the brand’s appeal, making it easier for consumers to purchase.
– Flava Culture: Flava’s cultural space extends beyond vaping, encompassing a vibrant community of enthusiasts passionate about flavor exploration. Online forums, social media groups, and dedicated events are hubs for enthusiasts to exchange recommendations, discuss flavor profiles, and showcase their latest “discoveries”. Flava competitions, gaining traction within the community, provide a platform for participants to vie for the title of the most innovative and delicious flavor combinations. These events not only celebrate the artistry of flavor crafting but also foster a sense of camaraderie among vapers, creating a solid and connected community. This strong community has been a significant factor in Flava’s rise in the market.
In parallel to Flava’s growing popularity, its marketing strategy and appeal to younger consumers have led to regulatory crackdowns due to concerns over the promotion of vapes to minors and violations of flavor restrictions. In March 2024, the Department of Trade and Industry (DTI) has suspended the sale, distribution, and manufacturing of Flava vapes due to violations of the country’s “Vape Law” (Republic Act 11900), which prohibits the use of flavor descriptors like “gummy bears” and “bubblegum” and the involvement of celebrities in promotions. These marketing strategies, which are popular among younger audiences, are prohibited by the Philippine law. For further details on the Flava ban, refer to Philippines: E-cigarette Market.
Moreover, Flava was also found to have improperly imported products, with some seizures valued at billions of pesos. Flava mislabeled its products as containing “freebase nicotine,” while lab tests revealed nicotine salts. Under-reporting of the nicotine salt content helped Flava evade a significant amount of excise tax and its rise in the market was even linked to its ability to import products from China at a total cost well below the fully-taxed level.
As of today, Flava vape products are officially banned in the Philippines. While the official sale of Flava products is prohibited in the Philippines, some retailers continue to illegally sell them through informal channels or online platforms in the absence of effective enforcement by regulatory authorities. Nevertheless, Flava’s ban clearly caused disruptions in the Philippine e-cigarette market, affecting not only Flava but also its Chinese business partners. These partners, who relied on Flava’s popularity to sell their products, are now facing the challenge to re-establish themselves in the growing Philippine market. With Flava vape products banned in the Philippines, consumers now turn to the alternative brands and products available in the market – including RELX, MOTI, Snowplus, VGOD and Vopoo.
