China's Tobacco Industry Basically Completes Establishment of Modern Trading System

Source from:  Yangtze River Daily newspaper 09/28/2006

The tobacco industry of China has basically completed the establishment of a modern cigarette trading system, to meet challenges from transnational tobacco giants following China's entry into the World Trade Organization in 2001, a senior official with the tobacco industry said recently. In an address to a symposium on cigarette trade held by China Tobacco Society in central China's Wuhan City on September 25, Li Jian, deputy director of the Cigarette Sales Network Establishment Department of China National Cigarette Sales Corporation, said that the establishment of a modern cigarette trading system in China has resulted in the development of a system of placing orders for cigarettes by phone, a system of allocating cigarette supplies online, a system of electronic accounts settlement for cigarette trade and a modern physical distribution system. Presently, there are 4.3 million cigarette retailers in China, with not less than 90 percent of them placing orders for cigarettes by phone, and with 60 percent of them realizing accounts settlement for cigarette trade through an online electronic accounts settlement system, according to conservative estimates. So far, cigarette sales networks have extended deep into natural villages in the country. According to Li, the tobacco industry of Wuhan City has provided successful experience for the whole tobacco industry of China in terms of the establishment of cigarette sales networks. In a future period of time, the tobacco industry of China will shift its focus of attention onto improvement of the quality of operation from the establishment of cigarette sales networks, in order to enhance its brands development capacity and strengthen its market control capability. At the symposium, high-level researchers and senior officials from all Chinese provinces and provincial-level regions as well as provincial capital cities held discussions on how commercial enterprises of the tobacco industry can manage to meet the changing market demand, and how they can practically improve their service. Participants in the meeting fully affirmed the achievements Wuhan City has achieved in business development over recent years, particular in the rapid development of such key cigarette brands as the Yellow Crane Tower and The Red Golden Dragon. Enditem