Great Wall: China's No. 1 Cigar Brand

Source from:  Tobacco Asia 05/14/2010

Great Wall Cigar Factory (GWCF) is affiliated to China Tobacco Chuanyu Industrial Corporation (CIC.) and was founded in 2007. The factory has a 90-year production history behind its main cigar brand, Great Wall, the first and only Chinese-made cigar available since 1950. GWCF represents China at international expositions and has won many honors. Nowadays, GWCF products sell in over 30 Chinese provinces, cities and municipalities. It is consistently the domestic leader in terms of output and sales volume. Great Wall is the symbolic, representative Chinese cigar brand and has earns its status as "China's No. 1 cigar brand". [b]First cigar base[/b] Possessing sufficient resources is vital for Great Wall to become China's leading cigar brand. Great Wall Cigar Factory (GWCF) is situated in Shifang - China's air-cured tobacco center -- established a special tobacco base there utilizing appropriate environmental conditions suitable for growing cigar tobacco. Currently, over 7,500 mu of premium cigar and white tobacco is under cultivation. The factory optimized the varieties of tobacco through the advanced experience of foreign countries and by utilizing natural conditions for many years. It gradually developed a set of field management methods and mature tobacco modulation technologies post-harvest, guaranteeing a supply of abundant premium raw materials or cigar production. Meanwhile, the factory seeks international suppliers who can guarantee good quality and reasonable prices to satisfy its requirement for high-quality raw materials for cigar manufacturing. GWCF is the oldest cigar manufacturing enterprise with the best technological base in China's cigar industry as its predecessor enjoyed a long history manufacturing cigars. China Tobacco Chuanyu Industrial Corp (CIC) instituted efficient strategic planning for its subordinate brands in 2006 after a reshuffle. The factory injected more resources towards cigar production while GWCF was set up independently, ensuring CIC's development as a modern manufacturing enterprise and laying a solid foundation for the rapid development of Great Wall cigar. CIC cooperates with foreign companies with the support China National Tobacco Corporation (CNTC) and it has established economic and technological cooperation with two famous international cigar companies - AGIO and Altadis USA - to supply the best opportunities for GWCF to improve itself and to enhance its independent research and development ability. Engaging in technological cooperation with two foreign tobacco enterprises at the same time is unique in foreign cooperation history for China's tobacco enterprises, and the highest-level managers of the domestic tobacco industry attach much importance to Great Wall cigars. As for equipment technology, GWCF initiated a technological transformation project over an area of 450 mu for a total investment of nearly RMB1billion (US$146 million). Construction progresses smoothly and the project enters the trial phase by the end of this year. By 2013, production will rise to 5 billion cigars with anticipated annual sales of RMB1.5 billion realizing a total profit and tax earnings of over RMB1 billion. At that time, GWCF will be the biggest cigar production manufacturing base in Asia and its equipment technology will reach international leading standards. [b]Large cigar market[/b] In 2009, the GWCF produced a total of 1.25 billion cigarettes on a sales volume of 1.14 billion. Its cigar output and sales volume quadrupled after the factory came on-stream. The cost-volume-profit report for 2009 shows that the total output and sales volume of Great Wall cigars amounted to 55% of the total number of Chinese-made cigars, demonstrating Great Wall cigar's obvious advantage. China's cigar market grows at over 30% annually, which is much higher than the 10% average growth level of the total tobacco industry. However, there are only few and scattered cigar consumption groups in China's tobacco market, compared to international markets. GWCF has tried to develop the giant potential of China's cigar market. It has formulated pertinent product R&D and market launch plans after thoroughly investigating the regional and domestic tobacco markets. Zhang Dairong, factory director of GWCF, insists on producing large machine-made cigar in order to adapt to Chinese consumer preferences, aiming to realize the perfect combination of cigar products and demand. GWCF developed several kinds of machine-made mini-size cigars whose shape is the same as China's traditional cigarette and whose inner quality and flavor is the same as a cigar to improve Chinese consumers' acceptance of cigar products and to gradually enhance consumers' understanding of cigars to develop and expand domestic cigar consumption. GWCF actively produces small blade-shaped cigars following the global trends away from thick to thin cigar products, changing from original to multiple flavor products. It developed different blade-shaped, mini-size cigars, Lion brand helix-shaped cigars and products aimed at tourists. GWCF strategy is to produce exquisite, high-end leaf-bundle-shaped cigars to build a high-end brand image. GWCF formed a preliminarily brand system structure with its Great Wall family catering to the middle and high-end of the market and the Lion series the middle-end. The factory actively explores new marketing models successfully to earn a larger share of the Chinese cigar segment. [b]Lead the way[/b] Currently, Great Wall is the best cigar made in China. Objectively speaking, the history of Great Wall is the history of Chinese cigars: GWCF historically led the way in the development of cigars conforming to Chinese consumption demands. The growth of Great Wall cigars also reflects the development course of China's cigar industry. The industrialization of China's cigar industry began from almost nothing. Establishing cigar manufacturing and technological standards with Chinese characteristics is the driving force behind China's cigar industry. GWCF commits itself to creating Chinese cigars that conform to international cigar manufacturing standards while catering to Chinese consumption preferences. GWCF is the leading force behind the drafting of related technological standards for Chinese cigar manufacturing. Although GWCF is eager to reach the pinnacle of cigar manufacturing success, it is keenly aware that the growth of a brand is a long-term project. Cigars enjoy a cultural connotation of wealth and social stratification, so GWCF needs to improve its own quality and constantly enrich the cultural connotation. It led China's cigar industry with long-term development in mind. The growth of GWCF is based on a solid foundation. It introduced advanced, international cigar manufacturing technology to China and actively researches and develops characteristic cigar products and technologies with self-owned intellectual property rights to make Great Wall cigars more attuned to Chinese characteristics and to develop Chinese cigars further. Meanwhile, it constantly enriches cigar product specifications to satisfy diversified demand and it tries to create efficient brand marketing means and methods. Establishing consumer awareness of cigar products will be the main challenge for Chinese cigar enterprises; and Great Wall cigar leads the way. Enditem