Tobacco Asia

Tobacco Asia 79 cigarette market, this is manifested in the popu- larity of cigarettes priced around RMB150/car- ton. Basically, as long as cigarettes in this price range are available, consumers will buy them, with no signs of overstocking. Most innovative products are "flash in the pan"; "internet-famous" products struggle to become enduring classics. China's cigarette market sees around 40 new products launched annually. Currently, new cigarette products fea- turing "fruit flavors" and "low tar" are trending, with various fruit-flavored new products hitting the market. Competition in the "low tar" sector is also intense. Products have competed from "5mg" down to "3mg". Although low-tar technologies vary, they generally meet the dual requirements of high aroma and high satisfaction. However, at this stage, only about 10 products are currently on the market or about to launch. Their pricing is also concentrated in the ultra-high-end segment, rep- resenting competition among only a few high-end brands, not yet reaching the mass market. Whether low-tar or fruit-flavored, these are methods to reduce cigarette harm and enhance health attributes through technological advance- ment, aiming to provide consumers with prod- ucts that satisfy the palate while offering relatively healthier choices. This type of innovation is pri- marily driven by consumption trends and an ea- gerness to capture the young consumer group. However, the preferences of young consumers are fickle; they lack solidified consumption habits and no strong brand loyalty. Consumers follow the trends. Once a trend fades, the product becomes obsolete. Most of these new products, like "inter- net celebrities", lose appeal once the novelty wears off. There are many "internet-famous" products, but few "long-lasting" ones. With low technical barriers, they inevitably suffer from severe ho- mogenization. Insufficient high-quality supply is the main reason At present, China's cigarette consumption market is currently transitioning from a period of incre- mental competition to deepening existing stock. The market will only contract and will not expand further; competition is fierce. While the overall consumption trend of market fragmentation and weak demand naturally dampens market vitality and demand activity, the primary reason is insuf- ficient high-quality supply. Moreover, the main problems are still concentrated in high-end products and innova- tive products. What consumers want to buy isn't easy to access, and what manufacturers want to sell, consumers don't want to buy. A mismatch between supply and demand is a relatively obvi- ous issue. From the perspective of cigarette manufac- turers: Manufacturers need to increase r&d efforts to provide high-quality, low-harm products. They must closely follow new trends and utilize new technologies and materials to offer consumers genuinely "innovative products." After all, high- end consumers never lack purchasing power; what they lack are good products they are willing to pay for willingly. Only through technological innova- tion, cultural depth, and scenario adaptation can the cigarette market truly become active. From the perspective of tobacco compa- nies: No amount of customer service measures is as direct as organizing well-suited supplies; no number of customer service activities is as direct as rationally allocating cigarette supply. Therefore, improving the service level of marketing person- nel to retailers is also a very important measure. Tobacco company marketers should minimize ineffective visits to retailers. They must fully un- derstand a shop's inventory status, price compli- ance, and overall profitability, share supply allo- cation strategies, analyze the sales performance of various cigarette brands, and, based on the grade and characteristics of different retailers, truly help them. They should proactively tailor personalized guidance and service plans for retailers, effectively promoting new products. Summary Overall, the current trend of rational consumption is a consumption revolution focused on deflating bubbles. Consumers no longer blindly pursue the sense of vanity brought by brands; they pay more attention to the actual value of brands. After all, in this era full of variables, only genuine substance is the hard currency that can weather cycles. To restore prosperity and vitality to the market, rely- ing on the "holiday economy" is insufficient. Only through technological innovation and enhanced service, using craftsmanship and sincerity to cre- ate well-suited, high-quality products, can we truly win this consumption revolution. Chinese consumers prioritize brand value over image.

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