Category: China Tobacco

On May 20th, the Hong Kong stocks e-cigarette sector continued yesterday’s gains. As of the close, Huabao International rose by more than 24%; China Boton rose by more than 8%; China Tobacco International and Simer International rose by more than 4%

According to market news, it is reported that Boulder and China Tobacco Yunnan have jointly produced a new electronic cigarette Small Yellow Fish, and the Small Yellow Fish has already started production and will be available soon.

Some market participants pointed out that if the rumor is true, it means that the national team will officially compete, which will greatly enhance the certainty of the e-cigarette industry.

In fact, rumors about China Tobacco’s entry into the e-cigarette field have spread from time to time. As early as 2018, it was reported that Yunnan and South Korea’s IF Tobacco Co., Ltd. signed a MC (MyCigarette MyChoice) brand low-temperature heat-not-burn cigarette distribution agreement in Kunming.

Recently, a wholly-owned subsidiary of China Tobacco Corporation published a patent for “a smart heat-not-burn electronic cigarette”.

The patent summary shows that this utility model discloses an intelligent heat-not-burn electronic cigarette. The heating temperature of the intelligent heat-not-burn electronic cigarette of this utility model is adjustable; at the same time, it can collect the heat-not-burn electronic cigarette and user smoking information and display it on the user terminal, help users to understand their smoking status.

Public information shows that in 2019, China’s e-cigarette market reached 7.86 billion yuan, and it is expected to exceed 9 billion yuan in 2021.

The development of e-cigarettes in China has gone through a period of barbaric growth, and is now gradually entering a period of regulation.

In November 2019, relevant state departments began to tighten the control of e-cigarettes. On November 1, 2019, the State Tobacco Monopoly Administration and the State Administration for Market Regulation issued the “Notice on Further Protecting Minors from E-cigarettes“.

Subsequently, the eight national departments jointly issued the “Notice on Further Strengthening Youth Tobacco Control Work”, warning various market entities not to sell e-cigarettes to minors, especially through the Internet.

Despite the country’s heavy efforts to rectify e-cigarettes, it cannot be denied that in terms of environmental protection, e-cigarettes can reduce carbon dioxide and other gas emissions and energy consumption, which is of positive significance for China to achieve carbon neutrality goals and achieve ecologically sustainable development.

Regarding the entry of China National Tobacco Corporation into the e-cigarette industry, economist Song Qinghui said in an interview with the media: “It is expected to accelerate the development of the e-cigarette industry in the direction of regulation.”

According to the national standard information public service platform, the national standard project for electronic cigarettes has now entered the “review” stage.

On December 8th, the heat-not-burn product KUNGFU MINIS Global Promotion Conference was held in Chengdu.

According to the announcement, under the premise of ensuring the prevention and control of the epidemic, some global distributors and members of the “Elite Exchange” market review club are invited to participate.

This “Kung Fu MINIS Global Promotion Conference” is mainly to review the brand creation story, strengthen brand image, build brand culture, launch new products, and expand brand and product recognition.

Compared with the previous Kungfu device, Kungfu MINIS is 11% smaller in size and 15% lighter in weight.

In terms of appearance, Kungfu MINIS is die-casted from aerospace-grade aluminum body into a “space shuttle” shape, with a touch spray on the surface, giving it an extremely round and non-slip feel.

In terms of internal of the devices, Kungfu MINIS uses a more advanced intelligent learning temperature control system, with a 900mA battery capacity, it brings a stable and long-lasting vaping experience.

In addition, in the airway design, Kungfu MINIS refers to the design of the rotary parameter mixing dynamics principle, which serves the purpose of airflow assisted cooling.

In the middle of the night on September 24, 2020, news came from London, England that Sichuan China Tobacco’s heat-not-burn product Kung Fu MINIS packaging won the silver award on Pentawards.

According to reports, Pentawards, known as the Oscar of the packaging design industry, each year’s award-winning works have to a certain extent become a vane of future trends in the industry.

Since its inception in 2007, the Pentawards competition will employ 12 well-known designers around the world and packaging design directors from well-known companies to form a professional review team to evaluate packaging design works from all over the world.

It is reported that this time Kungfu MINIS packaging can highlight the final award. The judges agreed that the work is forward-looking, modern and transformative in terms of brand and design.

The originality of the product packaging is: KUNGFU MINI series products define “to the future”. Shuttle in space is human’s yearning for the future. In order to give products more imagination, the shape of “space shuttle” came into being.

Kungfu MINIS packaging is a transparent rectangular parallelepiped. In order to visually present the “Space Shuttle” suspended shape, the entire packaging uses a combination of transparent material PET and environmentally friendly paper to make the product more technological.

The lower part of the package is made of pet material to form a blue glacier, and the top part is molded to form a galaxy star. The heater is placed inside the package, which means “space shuttle” travels through the universe.

This brings more imagination to users. The PET silk-printed product structure diagram makes the packaging more futuristic. Products with different colors represent different planets and the naming increases the connection between products and packaging.

Relevant personnel of the “Kung Fu” brand said that this award is a great affirmation to our design team and an encouragement to the subsequent development and innovation of the Kung Fu brand! We will cherish this honor and turn it into a driving force to continue to bring consumers better, newer and more creative products.

At 8pm Beijing time on August 20, 2020, MOK 2.0 was launched in the MOK flagship store in Gangnam District, Seoul, Korea through the YouTube platform COG TV.

In the 50-minute live broadcast, the concept video, usage method, usage experience and actual product display of MOK 2.0 were carried out.

As a series of co-branded artists, GRAFFLEX was invited to be a guest at the live broadcast of Korean fashion model Lee Jung-hwan. The two participated in the live broadcast together throughout the whole process, helping MOK 2.0 debut.

It is understood that GRAFFLEX is a well-known trend artist in South Korea, and has had cross-industry cooperation with world-class brands such as Nike, Mercedes-Benz and Montblanc.

This time GRAFFLEX cooperated with MOK to launch a limited edition smoking kit and accessories.

The world premiere of MOK 2.0 on August 20 represents the innovation path of MOK and has entered a new journey. The facts show that as long as the company makes up its mind, it can still go out successfully.

We also hoped that China Tobacco will cooperate with domestic private e-cigarette enterprises in various aspects when implementing the “going out” strategy, complement each other’s advantages, and make greater achievements in the international market.

Recently, the China Guangdong Provincial Tobacco Monopoly Bureau held a staff meeting to announce that the bureau will move away from the Pearl River City Building, an internationally super Grade A luxury office building with a total investment of more than 3 billion yuan, which’s located in the CBD of Guangzhou.

According to news reports, on the afternoon of August 19, the third inspection team of the central government reported the inspection situation to the State Tobacco Monopoly Administration’s party group. It was emphasized that the Guangdong Tobacco Bureau moved “in violation of regulations” when the old office building was still available before moving into the luxurious office building. According to the feedback from the central inspection team, the State Tobacco Monopoly Administration implemented rectification and ordered the Guangdong Provincial Tobacco Bureau to move away from the existing office building in the near future and find another office space.

Pearl River Tower is located at the junction of Zhujiang Avenue West and Jinsui Road in Tianhe District, Guangzhou. In 2019, the United States High-Rise Buildings and Urban Habitat Council released the “50 Most Influential High-Rise Buildings in the World in the Past 50 Years” ranking. 11 buildings in China were shortlisted, including the Pearl River Tower. The office area of the Guangdong Provincial Tobacco Bureau occupies the highest floor of the Pearl River Tower, from the 59th to the 68th, a total of 10 floors.

According to public information, the current rent of Pearl River City is 180 yuan per square meter per month. Based on the construction area of 27,000 square meters of the new office space of the Guangdong Tobacco Bureau, the annual rent and property management fees of the office area of the Pearl River City Building exceed 70 million yuan. Among them, the rent is 60 million yuan per year, and the property management fee exceeds 10 million yuan per year (the building property management fee is 32 yuan per square meter per month). There are more than 300 employees in the bureau and the per capita expenditure is 200,000 yuan.

On August 20th, the Shenzhen International Electronic Cigarette Industry Expo was held at the Convention and Exhibition Center. This exhibition ushered in two subsidiaries of China Tobacco: Yunnan China Tobacco and Henan China Tobacco. These two companies both produced their own heat-not-burn products, attracting many participants to watch and try. These products have been exported overseas.

New products immersed in competition

Yunnan China Tobacco owns well-known brands such as Ashima and Hongtashan, which are well-known in the country. Many people are interested in the heat-not-burn products they produce. According to the exhibitor Chen Manman, their products have been exported to many countries such as Arabia. Very popular abroad.

A reporter from the Securities Times·e company saw on the spot that China Tobacco Yunnan has a tobacco tasting session. The staff will record customer feelings and solicit opinions from visitors. A senior smoker handed IQOS catridges to Chen Manman for a try. Chen Manman said while smoking, “IQOS cigarettes are more gentle and lighter, and our cigarettes are strong and rough.” The same heat-not-burn Ashima cigarettes are used, and different kits have different flavors.

There are several companies under China Tobacco, all of which are developing their own e-cigarette products. “There is not much communication with each other, and each has its own understanding and its own formula.” Chen Manman introduced. Traditional tobacco companies see the aggressive development trend of e-cigarettes, and naturally have a sense of crisis. They hope that research and development can also participate in it, so as to avoid China’s opening up of this market in the future and being at a disadvantage.

The government is actually encouraging traditional tobacco companies to develop heat-not-burn electronic cigarettes. A staff member introduced that they are exempt from exporting this type of products overseas. In order to develop e-cigarettes, China Tobacco Yunnan established Shenzhen Huayu Technology Development Co., Ltd. in Shenzhen through a Hong Kong company. Huayu Technology produces various smoking sets and atomized electronic cigarettes. However, China Tobacco Henan adopted a cooperation model. They and Shenzhen Yuyan Electronic Industry Co., Ltd. cooperates and only produces cigarette cartridges, and the other is handed over to the partner.

The industry is waiting to recover

Perhaps due to the epidemic, the number of e-cigarette exhibitions has declined compared with last year. The exhibition that was originally scheduled for April has been postponed. It has been 492 days since the last Expo organized by Shenzhen IECIE. The impact of the epidemic is still there. Few manufacturers said that the industry has not yet recovered to last year’s prosperity.

The atmosphere of the exhibition is a little different from the past. The once-popular smoke culture has retreated. The smoke booth is rarely seen on the scene, and there are no models swallowing the clouds. Only a few platforms have DJs playing manic music. , Leaving the mark of that period of smoke culture. Many emerging e-cigarette brands, such as Bode, Xiwu, Ono, Snow Plus, etc., were seen at the scene. Many brands were attracting investment on site, opening offline chain stores, and all of them were posted in conspicuous locations. The maximum subsidy for a single store reached 300,000.

After the government introduced policies to restrict online sales of e-cigarettes last year, China e-cigarettes have fully turned to offline, and e-cigarette manufacturers with physical channels have an advantage. This also forces e-cigarette manufacturers to open stores if they want to survive.

On-site reporters also saw two listed companies participating in the exhibition, among which Jinjia (002191) brought the e-cigarette brand foogo to the exhibition. According to the staff, they have a series of cooperation with China Tobacco Yunnan, and the two sides also established a joint venture company. The company also provides R&D services to many China Tobacco customers. Skole, a subsidiary of Yinghe Technology (300457), participated in the exhibition. Yinghe Technology acquired 51% of the shares of Skole in November 2018. In that year, Skole realized a net profit of 38.567 million yuan and realized deduction of non-net profit of 52.720 million yuan in 2019.

Recently, we saw photos of heat not burn cartridge photos from Henan China Tobacco. “Yue Shang” is printed on the upper left of the front of the package, and “Golden Leaf” is printed on the lower right. According to understanding, “Yue Shang” should be the brand name of the cartridge.

The bottom of the front of the package is printed with “Our company reminds that smoking is harmful to health, please do not smoke in non-smoking places”. The company name “Henan China Tobacco Industry Co., Ltd.” is printed on the side of the package.

It is understood that “Golden Leaf” is a brand cigarette produced by Henan China Tobacco Industry Co., Ltd. (Zhengzhou Cigarette General Factory) and was put into production in 1951. It has won many national, provincial and ministerial-level high-quality product awards. In 2006, “Golden Leaf” was recognized as “China Famous Brand”. There are multiple product lines under it.

On the afternoon of April 16, with the delivery of the last batch of express mails, Sichuan China Tobacco’s new tobacco “consumer opinion leader promotion project” was officially launched.

In recent years, citizens’ health consciousness has been continuously improved, and the new tobacco product industry is booming. In order to adapt to changes in consumer demand, it is particularly important to understand how consumer groups, especially some opinion leaders (KOLs), feel about products. This promotion project has selected 20 cultural celebrities from across the country, including famous writers, poets, philosophers, cultural critics, economists, professors in famous schools, founders and editors of famous journals, CCTV financial channel commentators, independent Publishers, curators, senior media people, Internet influencers, etc. They are all famous, authoritative, brilliant.

After obtaining the consent of these cultural giants one by one, the new tobacco products in the research and development stage are delivered as soon as possible for them to take the lead in trying, tasting and making recommendations. This is another measure of Sichuan Tobacco’s new tobacco industry focusing on high-quality development requirements, market-oriented, combined with consumption demonstration, to achieve seamless integration of technology, brand and market. The initial plan of this project lasts for three months, and later it will be upgraded and deepened according to the actual result.