Wuhan Tobacco Group Successful in Developing International Markets

Source from:  Chutian Gold newspaper 02/02/2007

Wuhan Tobacco Group successful in developing international markets Wuhan Tobacco Group in central China's Hubei Province has been successful in developing international markets over recent years, with products going on markets in other parts of Asia and America, and expected to enter markets in Europe. In 2006, Wuhan Tobacco Group - one of the largest Chinese tobacco manufacturers - exported 90 million cigarettes (9,000 boxes) and 35 tons of cut tobacco to the regions of Hong Kong, Macao and Taiwan, and the Philippines, Indonesia, Singapore, Malaysia, East Timor, the United States, Australia and other countries. Besides, Wuhan Tobacco Group have conducted market surveys in South Korea, Japan, Mexico, Greece, Cyprus and other countries and regions to explore the possibility of entering markets there in a next stage. So far, Wuhan Tobacco Group's exports have mainly included its key cigarette brands of the Yellow Crane Tower and the RGD. In 2007, Wuhan Tobacco Group will make further efforts to increase its market shares in Hong Kong and Macao, enter markets in East Europe and develop markets in Australia and New Zealand. In 2006, China National Tobacco Corporation and Philip Morris jointly designated nine Chinese tobacco manufacturing enterprises as candidates for cooperation in gaining access to European markets. After several rounds of competitive assessment, Wuhan Tobacco Group emerged as the only winner that will represent Chinese tobacco manufacturers in entering markets in Europe. Official statistics show that in 2006, Wuhan Tobacco Group applied to the National Patent Office for 19 patents, including nine that have been certified and granted and two that have been recognized as patents for inventions. Consequently, Wuhan Tobacco Group has been ranked among the Top Three in the tobacco industry of China in terms of the quantity of patents in possession. Also in 2006, the two leading competitive cigarette brands of Wuhan Tobacco Group - the Yellow Crane Tower and the Red Golden Dragon - both hit record highs in market development. In 2007, Wuhan Tobacco Group will further increase investment in technical innovation, and will earmark 2 percent of the earnings from product sales as special funding for technical innovation, which is expected to reach over 200 million yuan (25 million U.S. dollars). According to its international markets development schedule, Wuhan Tobacco Group will officially put its trademarks at the marketplace in the Czech Republic in 2007, which will become yet another milestone in its drive to greatly develop international markets. Just three years ago, consumers in only six Chinese provinces could locally buy cigarettes made by Wuhan Tobacco Group. Presently, they can do so everywhere in China. Sources with Wuhan Tobacco Group said that inter-provincial sales by Wuhan Tobacco Group have accounted for 40 percent of its total cigarette sales. So far, Wuhan Tobacco Group has regained its seat in the club of big Chinese tobacco manufacturers. According to cigarette trade data released by the tobacco industry, Wuhan Tobacco Group's cigarette sales to other Chinese regions in 2006 reached 60.475 billion cigarettes (1.2095 million cases), the third largest amount for all Chinese tobacco manufacturers in the year. In particular, 23 percent of the Yellow Crane Tower brand cigarettes was sold to other Chinese regions in 2006. Enditem