Issue link: https://read.dmtmag.com/i/1544088
38 tobaccoasia Issue 2, 2026 March / April olds for the holiday period. Each supply cycle com- bined regular allocations with customer-selected options. Following each cycle, supply brands and quantities for the subsequent cycle were dynami- cally adjusted based on market price feedback. Brands maintaining strong pricing continued to receive supply, while those with weak pricing were strictly controlled or suspended entirely. Overall supply strategy was dynamically calibrated accord- ing to changes in aggregate social inventory levels. The results proved remarkably effective. Shenyang's cigarette market showed sustained improvement, retail terminal profitability was pro- tected, customer satisfaction with holiday period supply rose steadily, and both social inventory lev- els and cigarette brand prices moved toward more reasonable ranges. The New Year and Spring Fes- tival period is followed by other traditional peak seasons such as May Day and National Day; a healthy first quarter thus lays a solid foundation for sustainable development in the second and third quarters. Disrupting market equilibrium and exceeding reasonable limits for the sake of a fleet- ing "strong start" would be counterproductive. 'Stability' to define the 2026 development trajectory Influenced by the overall consumption envi- ronment and informed by successful cases like Shenyang's, commercial enterprises and retail ter- minals are abandoning the pursuit of short-term surges in sales volume and structural upgrading for the 2026 New Year and Spring Festival period. Based on realistic assessments, they have not only established reasonable sales targets and plans but have also collectively embraced market-wide sta- bility as the guiding principle. For instance, the in- dustry made advance arrangements for managing holiday period sales as early as December 2025, allowing sufficient time for strategic alignment and technical preparation. Specific principles and sup- ply strategies for the premium cigarette segments and mainstream products were clearly outlined, with the explicit purpose of preventing short-term gains from disrupting the development rhythm of the whole year. Based on January operational data, while commercial sales volume in January 2026 was slightly below the same period last year, the de- crease remained within acceptable parameters. Overall, volume stayed within a reasonable range; notably, average daily sales volume compared fa- vorably with the past five years. Nevertheless, pressures do exist, particularly concerning ciga- rette product mix. The average price per case in January was significantly lower than the same pe- riod last year, only marginally exceeding early 2022 levels. Even accounting for proactive management of supply for premium and mainstream cigarette products, results remain less than ideal. The transition from "strong start" to "steady start" signifies fundamental change: times have evolved, and societal demands with them. The adjustment in China's tobacco industry market- ing strategy for the New Year and Spring Festival period—moving from sales stimulation to actively maintaining market health, adjusting strategies, controlling inventory, and promoting profitabil- ity—has the primary objective of stabilizing the market. Importantly, this pursuit of stability is not a phased strategic choice; rather, it will define the main development trajectory throughout 2026, ensuring the industry's sound development in a stable state across the entire year. Commercial operators and retail outlets have stepped back from chasing short-term sales spikes and rapid structural upgrades. Instead, they set more realistic targets and aligned around a broader focus on market stability.