Bangladesh tobacco industry tactics for novel product expansion (2)
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Part-2
1. Use
According to WHO, the ‘majority of ENDS contain toxic chemicals, including nicotine and substances that can cause cancer (22). ENDS on their own are associated with increased risk of cardiovascular diseases and lung disorders and adverse effects on the development of the fetus during pregnancy (23). Mounting evidence shows that ENDS are harmful. Scientists have also found that e-cigarette flavors are toxic to white blood cells (24).
Although e-cigarettes are harmful for health, the tobacco industry and other companies are expanding the product in Bangladesh tactfully. The tobacco industry already expanded the e-cigarette market in the country by applying various tactics and strategies. According to the GATS report, e-cigarette users were 0.2% (25) of the total population of Bangladesh. However, the number of e-cigarette users is likely increasing day by day. DAM study finds 31.27 per cent of respondents had taken e-cigarette at least once in their lives (26). 60% of them were unaware of harmful effects (27). Most participants think e-cigarettes will help them quit conventional cigarettes, and that it is less harmful to health (28). Most of them were students of Dhaka University and North South University (29). The study also found increasing sales of e-cigarettes during field survey.
Many new brands and new types of e-cigarette have been brought to the Bangladesh market by tobacco and nicotine companies.
The TCRC study found at least ten types of devices and 80 flavored liquids in Bangladesh in 2019 (30). Our study has found more devices in the market. In the last three years many more new brands and new products have been brought to the market by tobacco and nicotine companies. This study found at least 32 brands of e-cigarette and e-liquid in the Bangladesh market.
Attracting and addicting youth to the e-cigarette is a major strategy and tactic in e-cigarette expansion. Some giant tobacco companies, including BAT, already spread e-cigarettes among the young generation. Some others, including United Japan Tobacco Limited, a sister company of JTI, are preparing to market the e-cigarette in Bangladesh (31). We know that they are preparing to market e-cigarettes as trademark registrations have already been taken out for some e-cigarette products, which have not yet come to Bangladesh.
Attracting and addicting youth to the e-cigarettes is a major tactic in e-cigarette expansion.
However, JTI is working with some other local companies to spread its tobacco market, including the e-cigarette market. As part of its efforts, JTI on August 6 in 2018 signed an agreement with Akij Group, the second largest tobacco company in Bangladesh, to expand its presence in the emerging markets of Bangladesh (32).
2. Prevalence
The number of e-cigarette users in Bangladesh is still relatively low (33) compared with conventional smokers. As a result of the government’s anti-tobacco activities and the continuous efforts of the anti-tobacco activists, the number of smokers in declining. On the other hand, the number of e-cigarette users is on the rise due to promotional activities by the tobacco industry and tobacco companies (34). Alongside the people who try to quit smoking, media reports highlight how young people who have never picked up a cigarette are now taking up vaping in record numbers across the country (35).
Young people who have never picked up a cigarette are now taking up vaping…
However, the users’ social status has now changed – now rising numbers of young people from lower-income families are also using e-cigarettes (36). The Finance Minister in his 2017 budget speech said that e-cigarette use is increasing day by day and it has become very popular among the young smokers from comparatively wealthy families (37). After speech of the finance minister, the tobacco industry’s efforts were continuing. So, e-cigarette users have increased over the last five to six years across social groups as the tobacco industry’s tactful propaganda continues.
As the tobacco control authorities currently have no regulatory instrument in their hands to control e-cigarettes, tobacco and nicotine companies are encouraging young people and non-smokers to get hooked on nicotine by vaping.
According to GATS 2017 report, tobacco use prevalence has significantly decreased among adults in Bangladesh, with 66.2% of them considering quitting smoking (38). However, tobacco companies try to hooking them to e-cigarettes through applying the various tactics discussed in this report. As the tobacco control authorities currently have no regulatory instrument in their hands to control e-cigarette, tobacco and nicotine companies are encouraging young people and non-smokers to get hooked on nicotine by vaping (39).
Visits to 50 shops (40), undertaken for the purpose of this survey on ‘Bangladesh tobacco industry tactics for novel product expansion’, proved the increased prevalence of e-cigarettes in the capital of Bangladesh, because, there were no e-cigarette shops in Dhaka city just a few years ago (41). Previously, most e-cigarette shops were found in wealthy areas of the capital city, particularly Gulshan and Banani, just after the arrival of the novel product in Bangladesh (42). Now, e-cigarette shops are found everywhere in Dhaka, making them more accessible. The survey of shops found that only around 22% of the 50 outlets have been selling e-cigarettes for five years or a little more. The remaining 78% of the e-cigarette outlets surveyed in Dhaka were started within the last five years, and have been selling e-cigarettes for less than five years. This further highlights the increase in e-cigarette sales in recent times.
Most e-cigarette shops were found in wealthy areas of Dhaka just after the arrival of the novel product. Now, e-cigarette shops are found everywhere in Bangladesh, including remote towns.
The prevalence of e-cigarette outlets is not only found in Dhaka city but also in other cities, towns and remote areas across the country (43). The novel addictive product is easily within the purchasing capacity of low-income populations and youth. The device starts from Tk 550 to Tk 35,000 and the liquid price is between Tk 350 and Tk 24,000 (44). Still the price decreases day by day (45).
3. Legal Situation
There are about 50 countries that have some type of ban on e-cigarettes and similar products—either on possession, use and sale, or importation. Although the e-cigarette is banned in neighboring India and other countries, it is still not banned in Bangladesh. The ‘Smoking and Using of Tobacco Products (Control) Act, 2005’, updated in 2013, does not address e-cigarettes. As the sale of e-cigarette is not regulated, its sale is ‘allowed’ indirectly. Tobacco related laws and regulations were analyzed and it is observed that the tobacco industry misuses the tobacco control law to sell these products, as outlined below.
The tobacco control law does not address e-cigarettes. So, the tobacco industry misuses the law to expand its market.
Tobacco and nicotine companies take advantage of loopholes in the law and manage to obtain the legality of e-cigarette business through applying various tactics. Many giant tobacco companies, including BAT and JTI, are using trademark registration, which is a tactic to legitimate and introduce the product in Bangladesh. Importing e-cigarettes through getting approval from the authorities concerned and paying tax and duties to the government for imported e-cigarette products are all part of the strategy of the tobacco industry for the legalization process of e-cigarettes in Bangladesh.
Many giant tobacco companies are using trademark registration as a tactic to legitimate and introduce the product in Bangladesh. Importing e-cigarettes through getting approval and paying tax are all part of the industry’s tactics to create a legal market for the products.
Tobacco and nicotine companies are also taking advantage of the provision of ‘Designated Smoking Area (DSA)’ in the tobacco control law. Using the loophole in the law, tobacco companies are enticing and inducing restaurant owners to establish DSAs (46). The tobacco industry is making good use of the DSAs to expand the e-cigarette market and increase its users in Bangladesh. The e-cigarette is used in many DSAs, while BAT and many others sell e-cigarette products in these areas. In many restaurants in Dhaka city, DSAs were developed in collaboration with some leading tobacco companies, while it was found that promotional activities are going on in many of the DSAs (47).
The tobacco industry makes good use of ‘Designated Smoking Areas’ to expand the e-cigarette market. BAT and many others sell e-cigarette products in DSAs. In many restaurants, DSAs were developed in collaboration with leading tobacco companies.
Although the tobacco control law does not address e-cigarettes and tobacco industry uses the loopholes in law, the apex court issued an order against tobacco which also covers the e-cigarette. The Appellate Division of the Supreme Court (Civil Appeal No. 204-205/2001, 01/03/16) in a judgment directed to reduce tobacco consumption in Bangladesh at reasonable level. The same judgment directed that no new tobacco and tobacco products companies should be allowed in the country and existing tobacco companies should cooperate in manufacturing other products. The Appellate Division issued the judgment, upholding a judgement of the High Court. The judgement stated against new tobacco product, while according to the judgement, any new tobacco product is not a Quitting Product. However, e-cigarette is a new tobacco product. As per the judgment, it is supposed to be stopped if it is a Quitting Product.
4. Imposition of Tax
There was no legal framework to import and market e-cigarettes in Bangladesh. Imposing tax and duties and allowing import paved the way for the tobacco industry in expanding the novel tobacco product in Bangladesh. Custom tariff for the electronic cigarettes and similar vaporizing devices is 212.20%. The HS Code is 8543.40.00.
The is no legal order regarding e-cigarette import before 2018. Imposing tax and allowing import paved the way for expanding the market in Bangladesh.
There was no legal order regarding e-cigarette import before 2018. Allowing the import of e-cigarettes is a process of legalization on the one hand, and by paying taxes and duties on the other, the tobacco industry will argue that since the import of e-cigarettes is increasing Bangladesh’s revenue through taxes and VAT, it needs to be legalized. The tobacco industry will want to highlight the argument that e-cigarettes will play a vital role in the country’s economy.
5. Socialization of Vaping
Many youths use e-cigarettes simply for social reasons and while spending time with friends. Daily Manabzamon, a Bengali leading newspaper, reports that youths vape as a social activity. Uptake of this activity is generally relatively high among students (48). The tobacco and nicotine industry manipulates the emotions of youths and continues its activities for e-cigarette expansion (49). So, now its use is seen in youth hangout spots, campuses, street corners and restaurants particularly in Dhaka (50). According to the DAM study, most students who took part in the study, tried their first e-cigarette with friends (51). Nearly 95% of e-cigarette sellers who were included in our study said that students are among the main customers of vaping products.
Tobacco and nicotine companies use social media to reach the young generation and students. About 80% of shops included in our survey use both the online platforms and social networking sites to expand their e-cigarette businesses, while about 94% of shops use only social networking sites.
The participants in the survey said that they also use off-line media to increase e-cigarette sales. A ‘Vaping Festival’ took place in Dhaka with the support of BAT, which encouraged young people to use e-cigarettes, who were the main participants in the festival. The video of the vaping festival was shared widely on social media platforms. A screenshot of the video has been attached (see page 14).
6. E-cigarette brands currently available on market
The e-cigarette products of various brands come from China, USA, UK, Germany and Malaysia. According to our field-level survey, the majority of the imported vaping products come from China. There are at least 32 e-cigarette and e-liquid brands that the study found during visits to markets. The brands’ names were mentioned in a table below. The brands are also available in online markets. Names, pictures and prices of the brands are usually given in the sites of online shops, including leading online shop Vape Stop (52).
SL | Brand | SL | Brand |
1. | VUSE (53) | 17 | Joyetech |
2. | JUUL | 18 | Cosmic Fog |
3. | SMOK | 19 | Lite-40 |
4. | Caliburn | 20 | DRAG Max |
5. | Myle | 21 | HC |
6. | Vaporesso | 22 | iStick Pico |
7. | VOOPOO | 23 | XROS Nano |
8. | Yuoto | 24 | AEGIS |
9. | IGET | 25 | JACOB |
10. | Aspire | 26 | SXmini |
11. | Nasty Juice | 27 | Vapengin |
12. | Charlie’s Chalk Dust | 28 | Jellybox |
13. | Ripe Vape | 29 | Tobac King |
14. | Lost Vape | 30 | Bigbox Mini |
15. | GEEK Vape | 31 | Thelema Solo |
16. | Dinner Lady | 32 | Jam Monster |
Various tactics are applied from the tobacco and nicotine industry to expand e-cigarette brands and products more widely. With its slogan ‘Building A Better Tomorrow’, BAT puts a sharper focus on its New Category products, fuelled by investment from the continued delivery of its traditional tobacco business (54). Alongside the other tobacco products, the giant tobacco company highlights its slogan ‘A Better Tomorrow’ during its activities of e-cigarette expansion. The BAT uses the slogan as it wants to attract the consumers saying, ‘Our approach will deliver A Better Tomorrow™ for our consumers who will have a range of enjoyable and less risky’ (55). BAT has taken trademark registration for e-cigarette brands with this slogan. They are promoting the ‘Better Tomorrow’ in Bangladesh.
Reference
22. https://www.who.int/news/item/05-02-2020-e-cigarettes-are-harmful-to-health
23. https://www.who.int/news/item/05-02-2020-e-cigarettes-are-harmful-to-health
24. https://www.thedailystar.net/world/e-cigarette-flavors-are-toxic-to-white-blood-cells-1528456
25. Global Adult Tobacco Survey (GATS) Bangladesh 2017, Bangladesh Bureau of Statistics, Ministry of Planning, Bangladesh (http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/57def76a_aa3c_46e3_9f80_53732eb94a83/Preliminary%20Report%20on%20GATS%20Bangladesh%202017.pdf)
26. Daily Prothom Alo, Ibid (https://en.prothomalo.com/bangladesh/e-cigarettes-in-bangladesh-create-a-cloud-of-debate)
27. Daily Prothom Alo, Ibid (https://en.prothomalo.com/bangladesh/e-cigarettes-in-bangladesh-create-a-cloud-of-debate)
28. E-cigarette Use Among University Students in Dhaka, Bangladesh (The study carried out in 2020 by DAM)
29. E-cigarette Use Among University Students in Dhaka, Bangladesh, Ibid
30. E-Cigarette: Threat of New dimension of Tobacco – Marketing, distribution and availability in Dhaka City (2019 study report of Tobacco Control and Research Cell of Dhaka International University)
31. The Business Standard, 22 June 2022 (https://www.tbsnews.net/bangladesh/law-being-amended-ban-e-cigarettes-448170)
32. https://www.jti.com/sites/default/files/press-releases/documents/2018/JT-group-agrees-to-acquire-tobacco-business-of-akij-group-in-Bangladesh.pdf )
33. Why banning the Sale of E-cigarettes and HTPs in Bangladesh, Ibid, p.7
34. Some pictures provided in the report prove promotional activities for e-cigarette. Many online sites are opened for conducting promotional activities, while webinar and many other programmes are arranged in favour of e-cigarette. Links of some online sites and information of event arrangement came in some sections of the report.
35. Vaping rises as youths get addicted, Daily Independent, 28 December 2019, (https://www.theindependentbd.com/post/229802)
36. Daily Janakantha, November 1, 2022 (https://www.dailyjanakantha.com/national/news/668103)
37. Dhaka Tribune, 1 June 2017 https://archive.dhakatribune.com/business/economy/2017/06/01/e-cigarette-customs-duty-hike
38. Global Adult Tobacco Survey (GATS) Bangladesh 2017, Ibid
39. Daily Prothom Alo, February 21, 2021 (https://en.prothomalo.com/bangladesh/e-cigarettes-in-bangladesh-create-a-cloud-of-debate)
40. The list of shops where we paid visit and interviewed the sellers for field survey is mentioned in the Annexure-1. However, names of four shops were not include in the list as they wished for anonymity.
41. We found that 78% of the shops who began e-c-cigarette sale within five years, while no shops were found who began e-cigarette sale ten years ago. It proves that no e-cigarette shops in Dhaka city just a few years ago.
42. During our survey, we found that the 8-10 years old e-cigarette outlets in Gulshan and Banani areas, while e-cigarette outlets floated within five years were also found in other parts of the city. No ten-year old e-cigarette outlet was found outside Gulshan or Banani.
43. Bangladesh Post, May 8, 2022 (https://bangladeshpost.net/posts/e-cigar-use-reaches-alarming-level-in-bangladesh-85154)
44. E-Cigarette: Threat of New dimension of Tobacco – Marketing, distribution and availability in Dhaka City, Ibid
45. E-Cigarette: Threat of New dimension of Tobacco – Marketing, distribution and availability in Dhaka City, Ibid
46. Prof. Dr. Md. Habibe Millat, MP, Ban Designated Smoking Areas to Ensure a Tobacco-Free Environment, Daily Sun, 7 December 2021 (https://www.daily-sun.com/printversion/details/592280/Ban-Designated-Smoking-Areas-to-Ensure-a-TobaccoFree-Environment)
47. During our visit to a BAT-run outlet named ‘Gloria Jean’s Coffees’ at Dhanmondi in Dhaka, we found BAT is using DSA in the outlet for promotional activities. Promotional photos were seen in the outlet. A photo of vaping device collected from here is mentioned in the report (section- Use). The photo was taken in October 2022.
48. Daily Manabzamin, 27 April 2022
(https://mzamin.com/article.php?mzamin=325644&fbclid=IwAR2gU1M1kGo48ruxrZQ5Ur1slQlc9afBtap6kyporH8pyeCvGwyJsczbZis)
49. Daily Manabzamin, Ibid
50. Bangladesh Post, May 8, 2022(https://bangladeshpost.net/posts/e-cigar-use-reaches-alarming-level-in-bangladesh-85154)
51. E-cigarette Use Among University Students in Dhaka, Bangladesh, Ibid
52. https://vapestopglobal.com/bd/ (The website of VAPE AND E CIGARETTE SHOP ONLINE IN BANGLADESH. Global Head Office: Prime Tower, Business Bay, Dubai, UAE. Country Head Office: D Block, Road 140, Gulshan South Avenue, Gulshan-1, Dhaka, Bangladesh)
53. VUSE is very popular e-cigarette brand of BAT. The giant tobacco company sells the VUSE products from its 39 outlets which run behind the scene and many other vaping shops in Bangladesh. BAT also carries out VUSE online shopping in Bangladesh, offering exciting vaping products. Two of the sites–https://www.buyherenow.com.bd/new-experience/store-locations and https://xclusivebrandsbd.com/vuse/
54. https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/DOC56HHG#
55. https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/DOC56HHG#
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