STMA Chief Pledges Support for Development of Key Competitive Cigarette Brands

Source from:  STMA 06/25/2007

Director-General Jiang Chengkang of the State Tobacco Monopoly Administration (STMA) - the regulator of China's Tobacco Industry - has pledged support for efforts of the tobacco industry to develop more than a dozen key competitive cigarette brands as a strategic development task and target to significantly increase its core competitiveness. In an address to a symposium on the development of more than a dozen key competitive cigarette brands held by the STMA in Beijing on June 12-13, Jiang said that as far as the development of more than a dozen key competitive cigarette brands is concerned, the STMA will not only support further rapid development of advantaged cigarette brands, but will also encourage the development of those that emerge as new burgeoning brands or that prove to be latecomers surpassing old-timers. Jiang urged the tobacco industry to be well aware of changes in the structure of cigarette brands as a result of exacerbation of competition at the marketplace, define the orientation of development, and actively take steps to strengthen the development of key competitive cigarette brands, in order that their key competitive cigarette brands will be continuously upgraded and will have sustainable development amid market competition. The STMA chief said that the key to sustainable and sound development of the tobacco industry lies in full-scale upgrade and sustainable development of key competitive cigarette brands, and that the trend of development of key competitive cigarette brands has become a major factor affecting the development of the tobacco industry. From January to May, the tobacco industry of China registered continued steady growth in a favorable trend of development, with key competitive cigarette brands playing a major support and leading role, according to Jiang. He urged the whole tobacco industry to take the development of key competitive cigarette brands as a major task and effectively operate production and marketing in this respect, to contribute to increasing its core competitiveness and realizing sustainable and sound development. Jiang required the tobacco industry to well handle the relationship between key competitive cigarette brands and the Top 100 Chinese cigarette brands designated by the STMA, the relationship between key competitive cigarette brands and low-grade cigarette products, and the relationship between efforts to accelerate the development of key competitive cigarette brands and realization of higher growth rates, in striving to maintain sound development of key competitive cigarette brands. Firstly, development of the Top 100 Chinese cigarette brands should be the basis while development of key competitive cigarette brands should be a target. Secondly, it should be made clear that both reform of the structure of existing cigarette brands and development of existing cigarette brands should be mainly intended for the development of key competitive cigarette brands. Reform of the structure of existing low-grade cigarette brands should be carried out strictly in accordance with the demand of consumers, in striving to provide them with high-quality products with rational pricing. And thirdly, attention should be paid to appropriately promoting the development of key competitive cigarette brands, which will contribute to strengthening the basis for future development of the tobacco industry, in order that it will be able to maintain sustainable development amid market competition. Enditem