Tobacco Asia

38 tobaccoasia / Issue 3, 2017 July / August rope Company (CTIEC) was officially launched in Roma- nia, and CT Anhui became one of the pioneers in "going global". In April 2006, the Chinese Ministry of Commerce approved increasing investment in Baofeng Tobacco Com- pany in which CT Anhui holds a controlling stake. After the process of increasing investment and shares, the company was renamed CTIEC, and CT Anhui took a major step in China's tobacco industry entering the international stage. In 2007, supported by great promotion efforts by STMA, CTIEC smoothly completed a technological transformation which was intended to establish a produc- tion base for China Tobacco in Europe. As a result, the level of equipment and the production and manufacturing capacity of CTIEC have both been significantly promot- ed. Besides producing Dubliss cigarettes, a brand owned by CTIEC itself, the company also produces RGD and Harmony cigarettes, which are brands owned by China To- bacco Philip Morris International (CTFMI). Soon, CTIEC determined the direction needed for the development of the enterprise and its competitive brands, with priority given to developing Dubliss. Taking advantage of Philip Morris' local marketing channels, the first batch of Dubliss was well received by local consumers. In Romania alone, the monthly supply of Dubliss to the local market can reach up to 2,000 boxes (20 million cigarettes). In 2013, taking advantage of the development momen- tum brought about by the Belt and Road initiative, CTIEC accelerated its expansion into Africa and the Middle East. In 2015, CTIEC, seizing opportunities brought about by China's implementation of the Belt and Road initiative, exerted all efforts to quicken its pace in "going global". In that year, the group increased its investment of US$25.3 million in the project. Presently, CTIEC is vigorously de- veloping markets in Africa, the Caucasus region, the Balkan region, Serbia, Montenegro, Croatia, Slovenia, Romania, Moldova, Ukraine, and parts of Turkey. China Tobacco Guangdong Industrial Co., Ltd. – Chi- nese flavor for global sharing. Under the auspices of the STMA, China Tobacco Guangdong Industrial Co., Ltd. (CT Guangdong), Tianli International Economic and Trade Co., Ltd. (Tianli), and British American Tobacco China jointly invested in incorporating China Tobacco British American Tobacco International Co., Ltd. (CTBAT). On August 28, 2013, CTBAT was officially inaugurated and put into op- eration in Hong Kong as a joint venture. After conducting a comprehensive market survey, CT- BAT swiftly formulated a strategy to develop internation- al markets with the Double Happiness cigarette brand, and set the target of turning the brand into the number one Chinese cigarette brand universally recognized in interna- tional markets, with the aim of possessing global distribu- tors and loyal consumer groups in both developing and developed countries. According to the agreement on investment in the joint venture, CTBAT will possess and manage the Double Hap- piness cigarette brand in markets outside China. Meanwhile, CT Guangdong will present to the market a new interna- tional version of the Double Happiness under the theme of "Chinese flavor for global sharing", which means that the pro- cess of internationalization of the Double Happiness brand will be significantly accelerated. China Tobacco Guizhou Industrial Co., Ltd. A late starter focusing on medium- and high-grade tobacco products. In September 2014, Guojiuxiang (the national liquor aroma), a leading competitive cigarette brand of China Tobacco Guizhou Industrial Co., Ltd. (CT Guizhou) entered duty-free shops in in- ternational markets. In little more than a year, the sales volume and the fine reputation of Guijiuxiang both kept increasing. At duty-free shops, a carton of Guojiuxiang 30 sells for HK$1,600 (US$205.00). Considered high-grade cigarettes, the prices of Guijiuxiang have remained very strong. At the time launching its drive to develop international mar- kets, CT Guizhou defined its guidelines for developing interna- tional markets for medium- and high-grade tobacco products by making international markets understand that can develop com- petitive products and brands, an example of which is the high value of Guiyan, its existing leading competitive cigarette brand. More Chinese brands "going global" On December 21, 2016, General Group of China Tobacco In- dustrial Shandong Industrial Co., Ltd. and China Tobacco Shan- dong Import-Export Co., Ltd. signed a framework agreement on cooperation in export, which provides for the export of more than 30 million generic filter tips, mint flavored filter tips with lines, and bursting beads filter tips, realizing the start of ex- porting filter tips manufactured by the provincial tobacco indus- try. This development means that General Group has taken yet another substantial step in developing international markets in implementation of the "going global" strategies of both STMA and CT Shandong. Last December 18, the first shipment of export-oriented Jinsheng (Porcelain) brand cigarettes manufactured by China Tobacco Jiangxi Industrial Co., Ltd. arrived in Yantian Port in Shenzhen City, from which the shipment will proceed to South- east Asian countries including Singapore, taking Jiangxi prov- ince's tobacco industry's first step towards internationalization. On December 27, 2016, China Tobacco Liaoning Import- Export Co., Ltd. (CT Liaoning IE) held a ceremony in Dalian to commence the export of the Great Hall of the People (Ancient Porcelain 8mg) cigarettes to Madagascar, which was attended by representatives from CT Liaoning IE, Madagascar Shenda Company, and Hongta Liaoning Co., Ltd. -- a subsidiary of Hongta Group. Following the ceremony, the first shipment of 500 boxes (5 million cigarettes) of the Great Hall of the People brand was dispatched to Madagascar. The aforesaid efforts made by China's tobacco industry prove that it has always been striving to "go global". Presently, the domestic tobacco market is saturated, how to "go global" and realize development of international markets is what de- serves the greatest attention. In this respect, the tobacco indus- try of China, however, still seriously lacks pertinent ideas, expe- rience, know-how, and effective measures. Under the Belt and Road initiative, the endeavor of the industry to "go global" will be of even greater significance, while global markets will be able to offer China greater room for growth.

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