Tobacco Asia

Volume 18, Number 5

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Page 53 of 83

54 tobaccoasia By Allen Liao China Tobacco Hebei Industrial (CTHIC) – a pro- vincial tobacco company in China's Hebei prov- ince – has been successful in focusing its efforts on developing its competitive cigarette brand known as Zuanshi (Diamond). Addressing the 2014 national tobacco work conference held in Beijing last January 16-17, direc- tor-general Ling Chengxing of the State Tobacco Monopoly Administration (STMA) proposed that all efforts be made to promote market-oriented reform of the tobacco industry and to actively ex- plore new channels and approaches for market dis- tribution within the framework of STMA. He also suggested that reform pilot projects be launched first in Beijing, Tianjin, and Hebei Province. As the leading operator in the tobacco industry in Hebei, CTHIC naturally plays a significant role in the coordinated development of the Beijing- Tianjin-Hebei Zone as well as the execution of market-oriented reform projects in the area. Development of Diamond amid competition A requirement of market-oriented reform is to es- tablish product development mechanisms which sufficiently understand the market. By taking into consideration the challenges faced when develop- ing new products and the necessity to foster com- petitive new products and develop more market segments, CTHIC believes that it is indeed im- perative to expand operations into other Chinese regions in addition to its home province of Hebei. In this endeavor, CTHIC has become well aware that what it needs is not only a competitive brand, but also the spirit of craftsmanship charac- terized by carefulness and perfection. Created in 2001, Diamond is a cigarette brand manufactured by CTHIC's Zhangjiakou Cigarette Factory. Over recent years, CTHIC has taken steps to extend the line of Diamond cigarettes stage by stage, level by level. In light of the smoking hab- its and sense of style of different Chinese regions, CTHIC continuously improved Diamond smok- ing styles, tar levels, and packaging designs as well as enriching the variety of products, striving to bet- ter meet the demand of different groups of con- sumers and different regions. Because of CTHIC's persistent efforts, Diamond achieved a level of success and recognition in the market. However, in comparison with some other big cigarette brands, Diamond is still more of a local brand popular in only some regional markets. Therefore, the launch Developing Competitive Brands Profile: China Tobacco Heibei

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