iQOS production keeps rising, but it sells out as soon as it hits stores
Despite rising competition, IQOS remains in short supply in Japan. PMI says sales have doubled since February, and production is being expanded to keep up with strong demand.
According to the Nasdaq website, despite the intensifying competition among such products, iQOS remains in short supply in the Japanese market.
PaulRiley, the president of Philip Morris International's Japanese subsidiary, said that since February this year, the sales volume of iQOS has doubled and the company is further expanding production to meet market demand. But the question is, how could the demand be so huge? Our iQOS production has been constantly increasing, but once it enters the store, it is sold out immediately. ”
After the trial sale of iQOS in several major cities in Japan, Philip Morris International expanded its sales coverage to the entire country in April 2016. So far, the sales volume of iQOS has exceeded 3 million units. After its launch in Japan, this product immediately sparked a consumption boom, and the situation of insufficient supply has persisted to this day.
The iQOS is priced at 9,980 Japanese yen (88.30 US dollars), but its price on online sales platforms has been driven up to 12,000 Japanese yen or even higher.
Philip Morris International said that due to the wide popularity of iQOS, its market share in Japan increased by 1.7 percentage points to 27.1% in 2016.
In January, Marlboro HearSticks' market share in the Japanese cigarette market was 7.6%. Currently, iQOS has launched four flavors in the Japanese market and will add two more flavors in March. By the end of this year, the sales market of iQOS will expand from the current 20 to 30.
