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China-U.S. trade war stimulates Chinese e-cigarettes to speed up brand buildingChina-U.S. trade war stimulates Chinese e-cigarettes to speed up brand building

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Cigarettes, Sino-US trade has started a "war"!銆€銆€ Yes, I鈥檝e read the news on the Internet these days, and I鈥檝e seen the Sino-US trade war the most.銆€銆€For some time now, the United States has continuously waved the "tariff stick" of trade protectionism against China. The Chinese side is also unrelenting. Not only has it issued tariff countermeasures, it will impose 25% tariffs on 106 products originating in the United States. The spokesperson of the Ministry of Foreign Affairs said bluntly "We are confident that we will have the last laugh". A spokesperson for the Ministry of Commerce said: We have taken note of the relevant US statement. On China-US economic and trade issues, China鈥檚 position has been very clear. We don't want to fight, but we are not afraid to fight a trade war. Behind the toughness is the improvement of our country's overall strength. Great, my country!銆€銆€ I saw a report issued by Ping An Securities, China and the US divided the industry trade balance, the industrial sector had a significant surplus, and the agricultural trade service trade had a significant deficit. In terms of different industries, in the industrial manufacturing sector, China-US trade has a significant surplus; while in agricultural products and service trade, China-US trade has a significant trade deficit. It can be seen that the distribution of Sino-US trade balances among the three major industries is not balanced. When the United States imposes trade sanctions on China in the industrial and manufacturing sector, agricultural products and services may become areas of choice for China to counter trade. The premise of launching a trade war is that the industries involved have a certain degree of economic contribution and can accommodate large-scale employment. The US trade sanctions are not purely to reduce the trade deficit, but also need to consider whether domestic related industries under trade protection can stimulate the economy and employment on a certain scale. From the perspective of industry added value, the added value of US chemical products, transportation equipment, electronics, food and beverage and tobacco, metal processing and manufacturing, machinery, and petroleum and coal accounted for more than 0.5% of the gross domestic product (GDP), and the scale was relatively large. Although the added value of plastics and rubber, non-metallic mineral products, primary metal products, electrical equipment, paper products, wood products, furniture, printing and textiles and garments accounts for 0.2% to 0.5%, they still have a certain scale. From the perspective of employment distribution, both the number of employed and unemployed in durable goods exceeds that of non-durable goods.銆€銆€ In fact, for ordinary people, the start of a trade war will have an impact on their lives, and will some products increase in price and cost? This is what everyone cares about most. For example, will the trade war affect the majority of smokers? After the United States announced a list of US$50 billion in sanctions against my country, the Ministry of Commerce of our country immediately responded within 12 hours and announced a list of counter-sanctions of the same scale, amount, and strength, and the tariffs imposed on the United States as announced by the Ministry of Commerce. In the list, you will find 12 tobacco products and tobacco raw materials. However, the impact of these measures on domestic smokers can be said to be minimal, because since the implementation of the tobacco monopoly system, my country's national cigarette brands have firmly controlled the domestic market, occupying more than 99% of the cigarette market share, and foreign cigarette brands have flooded the domestic market. Has become history.銆€銆€ Yes, for many years, the tobacco industry has always adhered to the construction and innovation of Chinese cigarette categories, shaping the unique style characteristics of the brand, and fully meeting the individual and diversified needs of consumers. Domestic cigarettes have been favored by consumers. National cigarette brands are highly recognized by consumers, thanks to the adherence and improvement of the tobacco monopoly system, the establishment and adherence to the development direction of Chinese cigarettes, the vigorous promotion of enterprise integration and brand integration, and the promotion of the expansion of key brands in a competitive state. Improve quality and value, promote the optimization and upgrading of product structure, and truly base the development of the brand on a reliable market foundation and solid work foundation, thus creating a strong group of Chinese cigarettes with distinctive personality, high reputation and high loyalty brand.銆€銆€ The National Bureau's proposal to obey and serve the overall situation of revitalizing national brands can be described as far-reaching. In the world tobacco market, several major multinational tobacco companies have gradually formed an oligopoly structure by virtue of their strong competitive strength. National tobacco companies in many countries have been weakened or even eliminated in the fierce market competition. Since 1985, the domestic market in Japan has been gradually occupied by foreign tobacco. In 30 years, the share of international cigarette brands in the Japanese market has gradually increased from 2.4% in 1985 to 40.1% in 2015. The Korean Tobacco Ginseng Corporation鈥檚 share of the Korean cigarette market has also been declining year by year. In 2015, its domestic market share was 58.8%, which has dropped by 14.2 percentage points in the past 10 years. Partitioned by international companies and Japan Tobacco. Although Russia has developed into the second largest tobacco consumer in the world, since the large-scale entry of foreign capital in the early 1980s, the domestic market has also been controlled by foreign tobacco companies. At present, the brands of multinational tobacco companies account for more than the share of the Russian tobacco market. 90%, its national tobacco companies and brands have almost no existence.銆€銆€ China, as the world's largest cigarette market, if there is no strong national cigarette brand and industry, trillions of market share will be squeezed by foreign cigarette giants, and national tax revenue will be lost a lot.銆€銆€ From the perspective of the trade war, if the tobacco leaves of our domestic cigarettes are to be imported from the United States in large quantities, or if the cigarette machine equipment, raw and auxiliary materials are imported from the United States, the trade war will have a huge impact on our tobacco industry. It is precisely because we have implemented a monopoly system and have a firm grasp of the raw materials and the production, supply and marketing chain, the trade war has little impact on our tobacco industry.銆€銆€ In fact, the trade war does not have no impact on the tobacco industry. From a certain perspective, it shows the difficulty of China Tobacco in opening up the international market.銆€銆€Industry media reported that on April 3, the 2018 Tobacco Industry Expansion Work Conference was held in Beijing. The leaders of the National Bureau emphasized that China Tobacco's "going global" confidence will remain unshakable and its strength will not weaken. With the help of the "One Belt One Road" international strategy, efforts will be made in six aspects to steadily advance the expansion of the international market. The first is to work hard on the construction of the capital platform. Focus on building mechanisms, focus on problem solving, and focus on business restructuring, make the construction of an overseas capital operation platform the top priority of work, open roads in the mountains, build bridges in the mountains, and actively promote. The second is to work hard on transformation and upgrading. We must do a good job in business transfer, promote operations outside; do a good job in asset reorganization, promote management outside; pay attention to incentives and guarantees, promote personnel outside, and strive to build an international, substantive, and professional company that controls the operation and control of the entire overseas tobacco industry chain. The third is to work hard on market expansion. We must persist in targeting the market and expand the expansion of key markets; adhere to channel construction and expand investment in international marketing; adhere to marketability and expand product market coverage; adhere to the “three-product” strategy, expand the international influence of the brand, and strive to build internationalization Tobacco Company. The fourth is to work hard on tobacco leaf exports. It is necessary to further optimize processes, change ideas, stay close to the market, study the market situation in a timely manner, accurately grasp changes in supply and demand, and further digest tobacco leaf inventory. The fifth is to work hard on standardized management. It is necessary to adhere to the leadership of party building, highlight the focus of work, do a good job of inspection and rectification, and continuously improve the standard management level of overseas enterprises from a higher starting point. Sixth, work hard on risk prevention and control. It is necessary to attach great importance to the prevention and control of investment risk, business risk prevention and control, financial risk prevention and control, and legal risk prevention and control, resolutely maintain the bottom line of no systemic risks, and establish a long-term mechanism to prevent and defuse risks.銆€銆€ I have always felt that in the development of the international market for traditional tobacco products, there are many difficulties. If we want to achieve "curve overtaking", we should invest heavily in the field of new tobacco products and strive to develop a place in the international new tobacco product market.銆€銆€ is right. It's like our country hopes to achieve "curve overtaking" in the automotive industry by vigorously supporting the development of new energy vehicles. In the field of traditional automobiles, domestically-produced automobiles are far behind the world's automobile giants due to the large gap between the accumulation of technologies such as engines and gearboxes and the international advanced level. The biggest difference between new energy vehicles and traditional vehicles is the power system. Through the development of new energy vehicles, independent brands have bypassed the limitations of traditional engine and gearbox technologies, and have the possibility of overtaking in corners.銆€銆€ From the perspective of foreign tobacco development, they are now also vigorously researching new tobacco products. According to industry media reports, the total sales of Philip Morris International鈥檚 ordinary cigarette products and heat-not-burn tobacco products launched on the market in 2017 were 798.2 billion, a decrease of 2.7% compared with the same period in 2016, and various products accounted for the international market. Compared with the same period of the previous year, the share of the company has also declined. Despite the decline in product sales, net income is still on the rise. Statistics show that Philip Morris International's net income in 2017 reached US$78.1 billion, an increase of 4.2% compared to the same period last year. In this regard, the person in charge of Philip Morris International said that in the fourth quarter of 2017, the substantial growth of the company's performance promoted the effective growth of the annual performance. Despite the overall decline in sales, the main heating non-combustion products鈥攊QOS sales are in good shape, and the company will continue to invest in this new tobacco product. To this end, the company must first stop the sale of ordinary cigarettes in the UK and focus on promoting new heat-not-burn products.銆€銆€ Japan Tobacco has established development strategies for new tobacco products and traditional tobacco products. In the field of new products, speed up domestic and foreign investment, and build an international e-cigarette production base. In the field of traditional tobacco products, speed up the cultivation of the "seed market", seize the market through mergers and acquisitions, and implement brand integration. The organizational structure of the tobacco business was adjusted, and the "Global Strategy Committee" was added to specialize in mid- and long-term strategies, and to highlight the status of strategic planning. One of the three cores of Reynolds Tobacco's transformation strategy is tobacco product harm reduction. Through innovative products to significantly reduce the health hazards of tobacco use, a product innovation branch was established in 2016 to focus on next-generation steam and nicotine products. In the past five years, the research and development of new tobacco products has invested more than 400 million US dollars. In 2016, the research and development investment accounted for Tax 1% of sales revenue. Reynolds is the first to launch heat-not-burn tobacco products for several times among the major multinational tobacco companies, and has always insisted on the research and development of new tobacco products. Its main e-cigarette brand Vuse has become the brand with the highest market share in the US market only 2 years after its launch.銆€銆€We also talked about the previous issues. Since last year, the country has strengthened market supervision of new tobacco products and has uncovered many major cases of smuggling IQOS. This also shows in a way that there are already fixed consumer groups for new tobacco products in China. Director Ling once said that creating new international competitive advantages for new tobacco products is a major responsibility, key task and important task of the industry's new tobacco product research and development system. The focus must be on the "three keys". First, we must grasp the key to the mechanism of innovative talents. Strengthen the integration of production, education and research, and gather and introduce first-class talents. Second, we must grasp the key to product integration and finalization. Strengthen product integration and innovation, and realize stereotypes, commercialization, industrialization, and branding. Third, we must grasp the key to international market competition. We must go to the international market to test, work hard, and expand to enhance the international competitiveness of new tobacco products.銆€銆€ I think that for new tobacco products, our industry should launch several key brands as soon as possible and focus on cultivation.

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China-U.S. trade war stimulates Chinese e-cigarettes to speed up brand building

China-U.S. trade war stimulates Chinese e-cigarettes to speed up brand building

Cigarettes, Sino-US trade has started a "war"!銆€銆€ Yes, I鈥檝e read the news on the Internet these days, and I鈥檝e seen the Sino-US trade war the most.銆€銆€For some time now, the United States has continuously waved the "tariff stick" of trade protectionism against China. The Chinese side is also unrelenting. Not only has it issued tariff countermeasures, it will impose 25% tariffs on 106 products originating in the United States. The spokesperson of the Ministry of Foreign Affairs said bluntly "We are confident that we will have the last laugh". A spokesperson for the Ministry of Commerce said: We have taken note of the relevant US statement. On China-US economic and trade issues, China鈥檚 position has been very clear. We don't want to fight, but we are not afraid to fight a trade war. Behind the toughness is the improvement of our country's overall strength. Great, my country!銆€銆€ I saw a report issued by Ping An Securities, China and the US divided the industry trade balance, the industrial sector had a significant surplus, and the agricultural trade service trade had a significant deficit. In terms of different industries, in the industrial manufacturing sector, China-US trade has a significant surplus; while in agricultural products and service trade, China-US trade has a significant trade deficit. It can be seen that the distribution of Sino-US trade balances among the three major industries is not balanced. When the United States imposes trade sanctions on China in the industrial and manufacturing sector, agricultural products and services may become areas of choice for China to counter trade. The premise of launching a trade war is that the industries involved have a certain degree of economic contribution and can accommodate large-scale employment. The US trade sanctions are not purely to reduce the trade deficit, but also need to consider whether domestic related industries under trade protection can stimulate the economy and employment on a certain scale. From the perspective of industry added value, the added value of US chemical products, transportation equipment, electronics, food and beverage and tobacco, metal processing and manufacturing, machinery, and petroleum and coal accounted for more than 0.5% of the gross domestic product (GDP), and the scale was relatively large. Although the added value of plastics and rubber, non-metallic mineral products, primary metal products, electrical equipment, paper products, wood products, furniture, printing and textiles and garments accounts for 0.2% to 0.5%, they still have a certain scale. From the perspective of employment distribution, both the number of employed and unemployed in durable goods exceeds that of non-durable goods.銆€銆€ In fact, for ordinary people, the start of a trade war will have an impact on their lives, and will some products increase in price and cost? This is what everyone cares about most. For example, will the trade war affect the majority of smokers? After the United States announced a list of US$50 billion in sanctions against my country, the Ministry of Commerce of our country immediately responded within 12 hours and announced a list of counter-sanctions of the same scale, amount, and strength, and the tariffs imposed on the United States as announced by the Ministry of Commerce. In the list, you will find 12 tobacco products and tobacco raw materials. However, the impact of these measures on domestic smokers can be said to be minimal, because since the implementation of the tobacco monopoly system, my country's national cigarette brands have firmly controlled the domestic market, occupying more than 99% of the cigarette market share, and foreign cigarette brands have flooded the domestic market. Has become history.銆€銆€ Yes, for many years, the tobacco industry has always adhered to the construction and innovation of Chinese cigarette categories, shaping the unique style characteristics of the brand, and fully meeting the individual and diversified needs of consumers. Domestic cigarettes have been favored by consumers. National cigarette brands are highly recognized by consumers, thanks to the adherence and improvement of the tobacco monopoly system, the establishment and adherence to the development direction of Chinese cigarettes, the vigorous promotion of enterprise integration and brand integration, and the promotion of the expansion of key brands in a competitive state. Improve quality and value, promote the optimization and upgrading of product structure, and truly base the development of the brand on a reliable market foundation and solid work foundation, thus creating a strong group of Chinese cigarettes with distinctive personality, high reputation and high loyalty brand.銆€銆€ The National Bureau's proposal to obey and serve the overall situation of revitalizing national brands can be described as far-reaching. In the world tobacco market, several major multinational tobacco companies have gradually formed an oligopoly structure by virtue of their strong competitive strength. National tobacco companies in many countries have been weakened or even eliminated in the fierce market competition. Since 1985, the domestic market in Japan has been gradually occupied by foreign tobacco. In 30 years, the share of international cigarette brands in the Japanese market has gradually increased from 2.4% in 1985 to 40.1% in 2015. The Korean Tobacco Ginseng Corporation鈥檚 share of the Korean cigarette market has also been declining year by year. In 2015, its domestic market share was 58.8%, which has dropped by 14.2 percentage points in the past 10 years. Partitioned by international companies and Japan Tobacco. Although Russia has developed into the second largest tobacco consumer in the world, since the large-scale entry of foreign capital in the early 1980s, the domestic market has also been controlled by foreign tobacco companies. At present, the brands of multinational tobacco companies account for more than the share of the Russian tobacco market. 90%, its national tobacco companies and brands have almost no existence.銆€銆€ China, as the world's largest cigarette market, if there is no strong national cigarette brand and industry, trillions of market share will be squeezed by foreign cigarette giants, and national tax revenue will be lost a lot.銆€銆€ From the perspective of the trade war, if the tobacco leaves of our domestic cigarettes are to be imported from the United States in large quantities, or if the cigarette machine equipment, raw and auxiliary materials are imported from the United States, the trade war will have a huge impact on our tobacco industry. It is precisely because we have implemented a monopoly system and have a firm grasp of the raw materials and the production, supply and marketing chain, the trade war has little impact on our tobacco industry.銆€銆€ In fact, the trade war does not have no impact on the tobacco industry. From a certain perspective, it shows the difficulty of China Tobacco in opening up the international market.銆€銆€Industry media reported that on April 3, the 2018 Tobacco Industry Expansion Work Conference was held in Beijing. The leaders of the National Bureau emphasized that China Tobacco's "going global" confidence will remain unshakable and its strength will not weaken. With the help of the "One Belt One Road" international strategy, efforts will be made in six aspects to steadily advance the expansion of the international market. The first is to work hard on the construction of the capital platform. Focus on building mechanisms, focus on problem solving, and focus on business restructuring, make the construction of an overseas capital operation platform the top priority of work, open roads in the mountains, build bridges in the mountains, and actively promote. The second is to work hard on transformation and upgrading. We must do a good job in business transfer, promote operations outside; do a good job in asset reorganization, promote management outside; pay attention to incentives and guarantees, promote personnel outside, and strive to build an international, substantive, and professional company that controls the operation and control of the entire overseas tobacco industry chain. The third is to work hard on market expansion. We must persist in targeting the market and expand the expansion of key markets; adhere to channel construction and expand investment in international marketing; adhere to marketability and expand product market coverage; adhere to the “three-product” strategy, expand the international influence of the brand, and strive to build internationalization Tobacco Company. The fourth is to work hard on tobacco leaf exports. It is necessary to further optimize processes, change ideas, stay close to the market, study the market situation in a timely manner, accurately grasp changes in supply and demand, and further digest tobacco leaf inventory. The fifth is to work hard on standardized management. It is necessary to adhere to the leadership of party building, highlight the focus of work, do a good job of inspection and rectification, and continuously improve the standard management level of overseas enterprises from a higher starting point. Sixth, work hard on risk prevention and control. It is necessary to attach great importance to the prevention and control of investment risk, business risk prevention and control, financial risk prevention and control, and legal risk prevention and control, resolutely maintain the bottom line of no systemic risks, and establish a long-term mechanism to prevent and defuse risks.銆€銆€ I have always felt that in the development of the international market for traditional tobacco products, there are many difficulties. If we want to achieve "curve overtaking", we should invest heavily in the field of new tobacco products and strive to develop a place in the international new tobacco product market.銆€銆€ is right. It's like our country hopes to achieve "curve overtaking" in the automotive industry by vigorously supporting the development of new energy vehicles. In the field of traditional automobiles, domestically-produced automobiles are far behind the world's automobile giants due to the large gap between the accumulation of technologies such as engines and gearboxes and the international advanced level. The biggest difference between new energy vehicles and traditional vehicles is the power system. Through the development of new energy vehicles, independent brands have bypassed the limitations of traditional engine and gearbox technologies, and have the possibility of overtaking in corners.銆€銆€ From the perspective of foreign tobacco development, they are now also vigorously researching new tobacco products. According to industry media reports, the total sales of Philip Morris International鈥檚 ordinary cigarette products and heat-not-burn tobacco products launched on the market in 2017 were 798.2 billion, a decrease of 2.7% compared with the same period in 2016, and various products accounted for the international market. Compared with the same period of the previous year, the share of the company has also declined. Despite the decline in product sales, net income is still on the rise. Statistics show that Philip Morris International's net income in 2017 reached US$78.1 billion, an increase of 4.2% compared to the same period last year. In this regard, the person in charge of Philip Morris International said that in the fourth quarter of 2017, the substantial growth of the company's performance promoted the effective growth of the annual performance. Despite the overall decline in sales, the main heating non-combustion products鈥攊QOS sales are in good shape, and the company will continue to invest in this new tobacco product. To this end, the company must first stop the sale of ordinary cigarettes in the UK and focus on promoting new heat-not-burn products.銆€銆€ Japan Tobacco has established development strategies for new tobacco products and traditional tobacco products. In the field of new products, speed up domestic and foreign investment, and build an international e-cigarette production base. In the field of traditional tobacco products, speed up the cultivation of the "seed market", seize the market through mergers and acquisitions, and implement brand integration. The organizational structure of the tobacco business was adjusted, and the "Global Strategy Committee" was added to specialize in mid- and long-term strategies, and to highlight the status of strategic planning. One of the three cores of Reynolds Tobacco's transformation strategy is tobacco product harm reduction. Through innovative products to significantly reduce the health hazards of tobacco use, a product innovation branch was established in 2016 to focus on next-generation steam and nicotine products. In the past five years, the research and development of new tobacco products has invested more than 400 million US dollars. In 2016, the research and development investment accounted for Tax 1% of sales revenue. Reynolds is the first to launch heat-not-burn tobacco products for several times among the major multinational tobacco companies, and has always insisted on the research and development of new tobacco products. Its main e-cigarette brand Vuse has become the brand with the highest market share in the US market only 2 years after its launch.銆€銆€We also talked about the previous issues. Since last year, the country has strengthened market supervision of new tobacco products and has uncovered many major cases of smuggling IQOS. This also shows in a way that there are already fixed consumer groups for new tobacco products in China. Director Ling once said that creating new international competitive advantages for new tobacco products is a major responsibility, key task and important task of the industry's new tobacco product research and development system. The focus must be on the "three keys". First, we must grasp the key to the mechanism of innovative talents. Strengthen the integration of production, education and research, and gather and introduce first-class talents. Second, we must grasp the key to product integration and finalization. Strengthen product integration and innovation, and realize stereotypes, commercialization, industrialization, and branding. Third, we must grasp the key to international market competition. We must go to the international market to test, work hard, and expand to enhance the international competitiveness of new tobacco products.銆€銆€ I think that for new tobacco products, our industry should launch several key brands as soon as possible and focus on cultivation.

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China-U.S. trade war stimulates Chinese e-cigarettes to speed up brand building

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China-U.S. trade war stimulates Chinese e-cigarettes to speed up brand building

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