<strong>China: STMA Issues Opinions on Promoting Marketing of Homemade Cigars</strong>

The State Tobacco Monopoly Administration (STMA) – the regulator of China's tobacco industry – issued on June 4 a set of opinions on adopting effective measures to further promote the work of marketing of cigars made in China, and on vigorous promotion of sustainable and healthy development of domestic cigar production.

The opinions emphasizes that the tobacco industry of China shall adhere to the work orientation of fostering Chinese-style cigars, and continue taking vigorous support of the development of home-manufactured medium- and high-grade cigars as a target, in order to gradually form a system of products of home-manufactured cigars with high-grade cigars taking the lead and with medium-grade cigars as the basis, and to practically raise the market shares of medium- and high-grade cigarettes manufactured in China.

The opinions urges adherence to the policy of coordination between the manufacturing and commercial sectors of the tobacco industry in cigar marketing, embodiment of Chinese characteristics in the cultural meaning of products, adaption of the flavor of products to meet the favor of Chinese consumers and formation of Chinese characteristics in marketing models.

The opinions raises a package of four requirements for the working of cigar marketing by the tobacco industry of China:

Firstly, specialized operation:

Efforts shall be made to establish specialized institutions for the work of cigar marketing, and to establish specialized cigar marketing teams to take charge of the work of management over cigar marketing.

Secondly, coordination between the manufacturing and commercial sectors of the tobacco industry:

Efforts shall be vigorously made to launch the work of cultural dissemination and brands development, to enhance the competitiveness of Chinese cigar brands, and to strengthen efforts to introduce cigar products into the market.

Thirdly, achievement of terminal breakthrough:

Efforts shall be made to actively explore ways of marketing of cigar products with characteristics, and to focus energy on establishing a platform for the dissemination of the culture of cigar products, demonstration of the image of cigar products, personal trial of products by consumers, development of competitive brands and sales of products.

And fourthly, strengthening of performance grading:

Efforts shall be made to establish long-acting mechanisms for the work of cigar marketing, strengthen the training of human resources for cigar marketing, conduct research for formulating norms governing the business of cigar marketing, and form relevant mechanism and models. Enditem