Operator of Provincial Tobacco Industry Centralizes Power of Marketing

Source from:  Fujian Province 06/08/2006

Fujian Provincial China Tobacco Industry Corporation, which is the operator of the tobacco industry of Fujian Province in southeast China, took over from its two subordinate tobacco manufacturing enterprises – Xiamen and Longyan Cigarette Factories - the power to market cigarette products within the province on June 1, in taking a major step of structural reform of the provincial tobacco industry. In centralizing the power of marketing, Fujian Provincial China Tobacco Industry Corporation will use the Fujian Provincial Tobacco E-Commerce Center as the trading platform, with a funds management system and an e-commerce transactions systems under it. Therefore, all transactions and accounts settlement will be made through an Intranet of the provincial tobacco industry. According to an official reply from the State Tobacco Monopoly Administration (STMA), Fujian Provincial China Tobacco Industry Corporation will start the exercise of its power to market cigarette products to other Chinese regions in July. At the beginning of 2006, Fujian Provincial China Tobacco Industry Corporation initiated a structural reform of marketing resources of the provincial tobacco industry, under the premise that the existing management system of its tobacco companies and cigarette factories would remain unchanged, and under the principle of "unifying planning, carrying out reform in steps, realizing stable transition and coordinating the interests of all sides." As a result, Fujian Provincial China Tobacco Industry Corporation has established under it a comprehensive marketing center, and has managed to reform the structure of marketing resources of its subordinate Longyan and Xiamen Cigarette Factories by putting their marketing businesses, sales personnel, brands and relevant data under its unified control, paving the way for its extension of the structural reform to other Chinese regions, which is expected to involve corporate merger or association. Enditem