Yunnan Provincial China Tobacco Industry Corporation in southwest China's tobacco-producing Yunnan Province held in the provincial capital city of Kunming on November 9 a high-profile symposium on coordination between the manufacturing and commercial sectors of the tobacco industry in promoting development of big competitive cigarette brands and cigarette marketing.
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Attending the meeting were high-ranking government officials and leaders and departmental chiefs from the tobacco monopoly administrations (or tobacco companies) from the 36 key cities in 33 provincial-level regions across China designated by the State Tobacco Monopoly Administration (STMA), as well as leaders and chiefs of the marketing development and other relevant departments from Yunnan Provincial China Tobacco Industry Corporation, Hongta Group, the HongyunHonghe Tobacco Group.
Deputy Governor Cao Jianfang of Yunnan Province, Deputy STMA Director-General He Zehua and General Manager Cao Huaqing of China National Cigarette Sales Corporation, General Manager Zhu Shaoming of Yunnan Provincial China Tobacco Industry Corporation, HongyunHonghe CEO Wu Yi and Hongta Group CEO Li Suiming respectively delivered important speeches at the symposium.
In his address to the meeting, Deputy Governor Cao Jianfang of Yunnan Province said that the tobacco industry would remain a backbone industry in Yunnan Province, and that both the Chinese Communist Party Yunnan Provincial Committee and the provincial government of Yunnan would exert all efforts to support the tobacco industry of Yunnan in supplying more and better products to cigarette markets across China.
Also speaking at the meeting, Deputy Director-General He Zehua of the STMA said that the tobacco industry of Yunnan needed to treat the demand of consumers and handle the trend of brands development in a forward-looking way, sufficiently understand characteristics of the marketing of big competitive cigarette brands, earnestly study issues concerning the structure of marketing sources, set up new marketing ideas, broaden its vision, keep researching and developing new technologies and means of production, and keep strengthening its capacity.
For commercial enterprises of the provincial tobacco industry, they need to extend continued support and care to the development of cigarette brands of Yunnan Province as they had always done, and join hands with manufacturing enterprises in doing a good job of brands development, on the basis of sufficient understanding of the changes and readjustments of the provincial tobacco industry in reform and development, according to He.
At the meeting, General Manager Cao Huaqing of China National Cigarette Sales Corporation briefed the participants on the sales and market performance of cigarette brands of Yunnan in the January-October period, and fully affirmed the development and performance of competitive cigarette brands of Yunnan at the marketplace.
He said that development of competitive cigarette brands of Yunnan Province was a highlight of development of all cigarette brands in China in the year 2010.
General Manager Zhu Shaoming of Yunnan Provincial China Tobacco Industry Corporation delivered an address to the meeting entitled "Determination of one target, realization of five shifts, and strengthening of five capacities in full-scale promotion of development of cigarette brands to a higher level", putting forward the general guidelines for the development of the tobacco industry of Yunnan in a next period of time and even in the 2011-2015 five-year period:
The determination of one target means the setting of the 5331 brands development target by Yunnan Provincial China Tobacco Industry Corporation, under which the tobacco industry of Yunnan will, in accordance with the brands development strategy of the STMA, strive to increase the annual output of its Mount Hongtashan brand cigarettes to 5 million cases (250 billion cigarettes), Yunyan brand cigarettes to 3 million cases (150 billion cigarettes), Honghe brand cigarettes to 3 million cases (150 billion cigarettes) and Yuxi brand cigarettes to 1.5 million cases (75 billion cigarettes), through development over the 2011-2015 five-year period or a slightly longer period of time in future.
Firstly, there will be a shift of the relationship between the tobacco manufacturing groups in Yunnan from competition onto contest.
Secondly, Yunnan Provincial China Tobacco Industry Corporation will realize a shift from "self-development" onto "common development".
Thirdly, the development of cigarette brands will shift from the separate development of multiple brands and multiple specifications onto concentrated development of the four leading key brands.
Fourthly, in the development of international markets, there will a shift from the development of general trade onto the development of competitive brands and elaborate and practical development of markets.
And fifthly, efforts will be made to realize a shift from the development of big brands onto the development of competitive brands.
Zhu explained that the strengthening of five capacities means the strengthening of the brands development capacity, the market development capacity, the service and marketing capacity, the technological innovation capacity and the resources guarantee capacity.
In an address delivered at the meeting, HongyunHonghe CEO Wu Yi briefed the participants on the situation of production and marketing of HongyunHonghe in the January-October period, introduced HongyunHonghe's "331" brands development target as well as development plans and key points of operation in the 2011-2015 five-year period, and put forward ideas on continuing on strengthen coordination between the manufacturing and commercial sectors of the tobacco industry.
(Under the "331" brands development target, HongyunHonghe will strive to increase the annual output of its competitive Yunyan and Honghe cigarette brands each to 3 million cases (150 billion cigarettes), with the annual total of single-brand sales income reaching 100 billion yuan (14.7 billion U.S. dollars), by the year 2015, in sufficiently embodying the spirit of the STMA's guideline of "promoting cigarette production to a higher level".)
Wu Yi said that the holding of the current symposium means a new opportunity to realize full-scale, coordinated and sustainable development of HongyunHonghe.
He said that HongyunHonghe will, under the current favorable situation of coordinated development of production and marketing, growth in taxes and profits and enhancement of the production capacity, continue to sharpen the competitive edge of its high-grade cigarette brands, strengthen its advantages in terms of resources, improve its systems and mechanisms, upgrade its basic management, and strengthen its human resources development, in order that the operation of HongyunHonghe in various aspects including marketing, raw materials supply and technology will be promoted to a higher level, and in order that the "331" brands development target of HongyunHonghe will become a major part of the "532" and "461" brands development strategies of China's tobacco industry meant to better meet the demand of consumers and drive up economic development.
The STMA's "532" development target provides that in a period of five years or longer, efforts will be intensified to develop two well-known cigarette brands each with an annual output of 5 million cases (250 billion cigarettes), three each with an annual output of 3 million cases (150 billion cigarettes) and five each with an annual output of 2 million cases (100 billion cigarettes). And, the "461" development target of the STMA provides that by the year 2015, efforts will be intensified to develop 12 highly influential cigarette brands each capable of generating over 40 billion yuan (5.9 billion U.S. dollars) in annual sales income, including six each capable of generating over 60 billion yuan (8.8 billion U.S. dollars) in annual sales income, and one capable of generating 100 billion yuan (14.8 billion U.S. dollars) in annual sales income.
Also speaking at the meeting, Hongta Group CEO Li Suiming expounded Hongta Group's brands development and situation of production and marketing in the January-October period, as well as the tobacco group's guideline on marketing in 2011. Enditem
