What Kind of Tobacco Brands Are Emerging in the New Era?

 Compared to previous years, the overall trend in the tobacco industry has shown signs of recovery since the beginning of 2017, with an improving economic situation and better product market conditions, even giving us a sense of a "bottoming out and rebounding" feeling. I still remember the arrival of the new normal at the end of 2012 and the beginning of 2013, which adjusted the pace, model, and trajectory of the tobacco industry's development, while also providing commentary and judgment on the previous development phase known as the "golden decade."

A new development environment creates a new order and gives rise to new development models, which is an inevitable historical trend and a characteristic of the times. So, what changes or characteristics will emerge in the growth and operation of brands in the upcoming, highly probable "new era" of the tobacco industry? From the current signs, it is already beginning to take shape.

In recent years, the industry has faced pressure in its development, and both brands and products have shown an overall trend of "upgrading and replacing," particularly reflected in three levels.

First, there is the refinement and sorting of brand value.

The strong brands under Yunchan Tobacco, such as "Yunyan," "Yuxi," "Hongtashan," and "Honghe," can stand alone, which also brings corresponding difficulties in establishing the overall style and value unity of Yunchan Tobacco. From the final establishment and deep exploration of the concept of "good mountains, good water, good tobacco" to the new development stage's higher expectations for the future, it indicates Yunchan Tobacco's aspirations.

Hunan Tobacco, with brands like "Furongwang" and "Baisha," has achieved a solid market position over the years. From "Mellow Hunan Tobacco, Mellow the World" to the recently proposed "Sharing with You, Enjoying Life," it reflects the company's re-anchoring of brand value in the context of upgrading and replacing.

Second, there is the improvement and breakthrough in product line construction.

Brands like "Guojiumei," "Hehua," and "KuanZhai" have distinct common characteristics, all achieving market volume through products, thus realizing family-style development and awakening independent brand awareness, which consumers praise, similar to "HeTianXia." High-volume brands in the market currently include "Zhonghua (Gold Medium)" and "Zhonghua (Double Medium)." It is well-known that the "Zhonghua" brand, due to its unique brand gene and industry position, has faced significant challenges in achieving breakthroughs in new products, while the emergence of new medium products seems to be breaking this "curse."

Lastly, there is the extension and upgrading of classic product specifications.

Products like "Hongtashan (Classic 2nd Generation)," "Yuxi (High-End Version)," "Baisha (Premium 3rd Generation)," "Furongwang (Hard Blue New Version)," and "Furongwang (Hard Yellow)" have given rise to thin and short products, expressing the determination and strength of upgrading classic "old" products. This "determination" and "strength" come from the judgment of market trends for thin, short, and explosive products and the structural upgrade-driven orientation.

From products to product lines to brands, the trend of upgrading and replacing has already become evident. With the successful convening of the 19th National Congress and the arrival of a new industry environment, changes in brands and markets are already underway. Looking back at the brand development situation in 2017, it is clear that this is a year of change.