International Market

06/24/2013

"Creating World-Class Brands"　is the strategic goal of Hongta Group. From a small tobacco leaves redrying factory founded in 1956 to today's landmark tobacco enterprise in China, Hongta made a miracle. However, facing these achievements, Hongta people know well that Creating World-Class Brands with high popularity, reputation and loyalty is the goal they have been pursuing.

From the mid-1980s until now, over more than two decades, Hongta Group has never stopped its exploration on realizing internationalization, which can be divided into three phases as follows:

Phase I: from 1987 to 1994, cigarettes were exported in general trade mode to raise foreign currencies for the later technical reform. 

Phase II: from 1995 to 2005, products were exported in general trade mode, and exploration was made on overseas entity operation. 

Phase III: during the "Eleventh Five-Year Plan" period, more investment was made on overseas entity operation.  

During the internationalization process, Hongta Group proactively played its role as the main body in developing international markets. By investing in overseas tobacco plants, strengthening the cooperation with international tobacco groups and local dealers, building sales channels etc., Hongta Group broke through the original export mode, proactively exploring multi-layer and multi-field international market exploration modes and operation systems.    

In 1997, Hong Kong Yu Chen Trading Development Ltd (Yu Chen in short), the only overseas wholly-owned subsidiary of Hongda Group was set up based on the original Hong Kong Hua Yu Trading Development Ltd registered in Hong Kong in 1993. In 2008, it was officially approved by Hongta Group as its office in Hong Kong. The business scope of Yu Chen includes: cigarette sales, importing of various kinds of mechanical equipment, accessories and cigarette auxiliary materials, and investment.  

As one of the overseas showpiece companies of Hongta Group, Yu Chen is engaged in selling cigarettes in overseas markets, and assisting the material purchase center of Hongta Group to import spares and parts from abroad. Besides, it also has participated in a number of investment projects specified by Hongta Group.  

Setting up Hong Kong Hongta International Tobacco Co., Ltd. in Hong Kong, Hongta Group took a crucial step toward internationalization. With Xiong Wei (International) Tobacco Co., Ltd. founded in 1992 as predecessor and located in Hong Kong SAR, Hong Kong Hongta International Tobacco Co., Ltd. is an overseas cigarette production enterprise of Hongta Group controlled by the original Chuxiong Cigarette Factory with shares. In 1998, according to the reply of the State Tobacco Monopoly Administration, the assets of Chuxiong Cigarette Factory were transferred to Hongta Group. On December 9, 1998, Xiong Wei (International) Tobacco Co., Ltd. was renamed as Hong Kong Hongta International Tobacco Co., Ltd. (Hongta Hong Kong in short). In 2011, by making full use of Hong Kong's advantage as a free port and an international financial center, Hongta Hong Kong, as a transitional bridge for Hongta Group to realize the transformation from domestic markets to localized overseas markets, played the role of assisting Hongta Group in expanding international markets. Depending on its advantage in production and exporting, Hongta Hong Kong will grow into an overseas processing base of Hongta Group in the fields of global duty-free markets and high-end product manufacturing.    

Hongta Hongkong mainly produces traditional flue-cured cigarettes such as "Yuxi", "Hongtashan", "Hongmei", "Ashima" and "Gonghe Xinxi", and  American blending cigarettes of "MARBLE", "ESTON", "STRAND"， "BRASS" etc., which are mainly exported to Southeast Asia, the Middle East, Africa, South America and so on. 

In November 2007, the Romania subsidiary HTS HONGTA SERVICES S R L wholly owned by HTS HONGTA SUISSE S A

 was founded. With the office in Bucharest, capital of Romania, HTS HONGTA SERVICES S R L is mainly engaged in sales and has a registered capital of 250,000 euros. It assumes the mission of selling Hongta's products in the taxable markets of Romania, and expanding markets to other European countries based on Romania, so as to gradually build Hongta brands, making contributions to Hongta's development strategy of Creating World-Class Brands. "Brass" and "Ashima" are the products of Romania subsidiary.  

In July 2008, Lao China Hongta Good Luck Tobacco Co., Ltd., with Lao China Good Luck Tobacco Co., Ltd. founded in 1992 as the predecessor, was set up in Vientiane, capital of Laos. Hongta Group holds 61% shares of the company. In 2008, the company set the "Three Bases" development goal, namely, developing into the tobacco leaf cultivation base, cut tobacco processing base and  cigarette making and exporting base of Hongta Group. The company mainly produces "HONGHUA", "JONNEE", "MARBLE", "GEM", "GongheXinxi", "Hongtashan" (Hard Pack), etc.  

In February 2011, to further strengthen the construction of its international markets, Hongta Group officially set up the International Business Department, and preliminarily build up a 3-level structural platform for exploring international markets, taking the headquarters of the International Business Department as the strategy-making and management center; taking Hong Kong Yu Chen and Hongta Hongkong as the secondary international market management and R&D platform, and building tertiary regional processing and sales centers in Southeast Asia, the Middle East, Eastern Europe, South America, etc. It is believed that the 3-level structural platform will form an effective operation system linking the control center and sales center of Hongta Group. 

From producing the first pack of "Hongtashan" in Yuxi Cigarette Factory in 1958 to today's marching to the international markets as a landmark tobacco enterprise in China, the growth of Hongta witnessed the struggle, dedication and also confidence of generations of Hongta people. Each progress recorded the self-challenge and sense of responsibility of Hongta people, and each leap brought Hongta closer to the dream of Creating World-Class Brands. Whenever starting a new journey, Hongta people would put the past achievements to a start-point, striding forward to the world with their perspiration and endeavor.