At the turn of spring and summer, a new trend has emerged in the Japanese heated tobacco market. In early June, British American Tobacco (BAT) launched a trial sales of the “glo Hilo” heated tobacco device in Sendai, Miyagi Prefecture, Japan, which attracted widespread attention. BAT’s Japanese branch chose Sendai, which was also the birthplace of the glo platform in 2016, as the first launch location, focusing on both emotion and market. Since its official launch on June 9, “glo Hilo” has entered local convenience stores and official websites and promoted through POP-UP flash stores.

The significance behind bringing “glo Hilo” back to its birthplace is particularly far-reaching. Luciano Comin, head of BAT’s marketing, pointed out that based on more than ten years of accumulated innovation experience in new categories, this product represents the upgrade and breakthrough of the glo brand in the field of heated tobacco. It marks BAT’s determination to compete with PMI’s IQOS.

In terms of research and development, “glo Hilo” uses a dual heating technology called “Turbostart” or “Quard heating”, which combines infrared and quartz heating to quickly heat tobacco to about 370 degrees Celsius, and preheating can be completed in just 5 seconds. Compared with the 330 to 350℃ level of IQOS TEREA/SENTIA devices, this temperature increase and speed increase not only improves the taste level, but also enhances the user experience. In addition, the device is equipped with an “EasyView” side screen, which clearly displays the power level, mode, and usage progress, and is supplemented by the “myglo” smart App to personalize usage habits, device positioning, session duration and other functions.

Simultaneously launched with the device is the specially developed “virto” cartridge, which has StickSeal™ sealing technology to prevent tobacco residue from scattering and enhance the cleaning experience. Currently, there are 8 flavors covering original tobacco, mint and fruit capsule flavors to meet the preferences of different users. Some media reviews say that the virto cartridge will not leak leaves during use, has a rich taste and is easy to carry.

It is generally believed in the industry at home and abroad that “glo Hilo” has received a good market response as soon as it was tested. Channel research data shows that BAT has invested significant marketing resources in local convenience stores and pop-up stores in Sendai, with outstanding product displays and enthusiastic consumer feedback; in terms of flavor richness, the combination of 8 flavors is more attractive than the previous pilot. At the same time, BAT also plans to achieve simultaneous listing across Japan on September 1, and will carry out subsequent promotion in markets such as Italy, South Korea, and the Czech Republic.

This move is of great significance to BAT in the fiercely competitive Japanese market. Although IQOS occupies 70% of the Japanese market share and BAT only 16%, “glo Hilo” aims to impact high-end user groups with its advantages of high-temperature heating, extremely fast start-up, and intelligent interaction, and reshapes the brand and market positioning.

In the midst of the craze, another type of brand mainly based on e-cigarettes is also emerging in the pan-tobacco substitute market. Among them, the VEEHOO brand launched by Shenzhen Ruiliang Technology has won the attention of the industry and users for its innovations in multiple dimensions such as technology, compliance, and sustainability.

VEEHOO advocates the transformation from “ambiguous choice to informed choice”, emphasizes the deep integration of technology, education and user needs, and guides consumers to make more rational use judgments. Faced with stricter global regulation, especially the ban on the sale of disposable e-cigarettes, the brand does not take a simple replacement path, but develops rechargeable and replaceable cartridges to cope with regulatory restrictions, reflecting flexibility and compliance.

In terms of technology, VEEHOO’s self-developed tobacco salt, natural nicotine extraction technology and ceramic atomization core make the smoking experience safer and closer to traditional smoke; it actively launches low-tar, modular and replaceable cartridge products to meet the dual needs of health and personalized experience. Its “T9” series uses nano-water mist technology to achieve a progressive solution from 5% nicotine to 0 nicotine, and cooperates with public hospitals to establish health records for users and conduct regular lung function screening. This “medical-grade” service guarantee has enabled 81% of its users to completely get rid of paper cigarettes within half a year, which is higher than the industry average of 54%.

In addition, VEEHOO actively undertakes environmental protection responsibilities: launching an online cartridge recycling project to address the problem of electric waste; cooperating with the government to provide popular science education and promote knowledge of correct use; cooperating with regulators to reduce the influx of black markets through technical means and provide legal adults with safer tobacco alternatives. In South Korea and Vietnam, VEEHOO has demonstrated its strategy of expanding in emerging markets through technology and compliance, and has been favored by policies and capital.

While BAT launched “glo Hilo”, VEEHOO represents another path: within the existing legal framework, with transparency and control as the core, it plays the value of e-cigarettes in replacing traditional tobacco. This comparison highlights the different evolutions of heated tobacco and e-cigarettes in the market, different administrative controls and consumer experience.

For consumers, “glo Hilo” and “VEEHOO” are both alternative tobacco products, but the models are very different. The former is playing the technology and brand card in the Japanese market, trying to seize the high-end heated tobacco market share by leveraging BAT’s channels and R&D strength; while VEEHOO is deeply engaged in compliance, service and health-oriented paths, exploring a broader global vision and market opportunities with the value standpoint of “gradual substitution” and “public health”.

With “glo Hilo” set to land in Japan in September and expand to markets such as Europe and South Korea in the future, BAT’s move is bound to trigger new changes in the industry. The good feedback during the product trial is a positive signal, but national promotion, user stickiness, competitive pressure and international regulatory environment are still challenges that BAT must face.

At the same time, new brands represented by VEEHOO will continue to strengthen their own advantages: stay ahead in technology research and development and experience; play a demonstration effect in compliance and public health; play a bridging role in environmental protection and sustainability. Unlike traditional tobacco giants, they have higher expectations in terms of public health and social responsibility.

Japanese consumers will face a head-on confrontation between two alternative tobacco products in the coming months: “glo Hilo”, which is sold as “high temperature at one time, high-end brand, and intelligent interaction”; and VEEHOO, which focuses on the route of “healthy gradual progress, transparent management, and low risk controllable”. This seems to be a product competition, but in fact it is a contest of product positioning and public concepts.

Whether BAT relies on its strength to promote “glo Hilo”, or VEEHOO continues to promote the positive evolution of the e-cigarette industry, it reflects that the tobacco substitute market is entering a mature, segmented, and diversified era. September will be an important turning point for the tobacco substitute market in Japan and even the world.

In this process of interweaving technology, regulations, health and business intentions, consumers will be the biggest beneficiaries. More innovative products bring optional solutions, stricter regulations ensure safe use, and more transparent brand concepts promote the industry to move forward together. For public health, whether it is heated tobacco equipment or e-cigarette brands, as long as they focus on reducing harm, the future is more worth looking forward to.

Tags: ceramic atomizer core, underage protection, flavored e-cigarettes, veehoo vape