Shi Chao: Innovation and Transformation Are the Main Themes of Business Development

 

Introduction: Shi Chao said: "The serious air quality issues reflect the severity of environmental pollution and expose the inadequacy of the current economic growth model. In the tobacco industry, one important experience that has allowed for sustained healthy development in recent years is the insistence on deepening reform and innovation-driven growth."

  According to news from the Chinese e-cigarette industry: On March 12, a spring rain ended the continuous sandstorms and haze in Beijing, the sky turned blue, and the air became fresh. The interview with Shi Chao, a representative of the 12th National People's Congress and general manager of Shanghai Tobacco Group Co., Ltd., also extended from this weather topic.
  This past winter and spring, many cities in eastern and central China frequently experienced haze weather, highlighting serious air quality issues. In response, Shi Chao stated: "The serious air quality issues reflect the severity of environmental pollution and expose the inadequacy of the current economic growth model."
  The traditional extensive development model can no longer meet the needs of China's economic and social development. A series of derivative issues, including environmental pollution, have created several constraints on achieving the grand goal of building a moderately prosperous society in all respects. Shi Chao believes that changing the development model is imperative. Whether it is building a "Beautiful China" or realizing the great rejuvenation of the "Chinese Dream," it must rely on innovation to drive transformation and development.
  Innovation-driven growth reflects a new development model driven by new concepts, new models, and new factors. "In the tobacco industry, one important experience that has allowed for sustained healthy development in recent years is the insistence on deepening reform and innovation-driven growth," Shi Chao analyzed to reporters. "Whether it is the separation of industry and commerce, mergers and reorganizations, or fully promoting the 'improving cigarette quality' strategic task and striving to create well-known brands like '532' and '461', whether it is building modern tobacco agriculture, creating modern cigarette distribution, or advancing major scientific and technological projects, the industry's continuous progress has always been accompanied by the shadow of innovation, benefiting from the transformation of development."
  As a key cigarette manufacturing enterprise, Shanghai Tobacco Group has always placed innovation at the forefront of its reform and development. According to Shi Chao, Shanghai Tobacco Group proposed in the second half of 2012 that the main line of enterprise reform and development in the coming period would be "innovation-driven, transformation development." After more than half a year of research, investigation, and discussion, Shanghai Tobacco Group has completed the "innovation-driven, transformation development" three-year plan, which points out the direction, establishes goals, and clarifies the path for the company's future development. At the same time, various functional departments of the enterprise have formed 14 innovation topics around this main line, covering technology, management, brand development, and marketing.
  Taking brand development as an example, Shi Chao introduced their "innovation-driven, transformation development" thinking to reporters: The "Zhonghua" brand surpassed 100 billion yuan in sales revenue in 2012, and the next step will be to deepen harm reduction and tar reduction work while continuing to strengthen its position; after the "Red Double Happiness" and "Double Happiness" brands' "marriage," they will further optimize the structure to enhance development momentum and vitality; the "Zhongnanhai" brand will continue to highlight its characteristics and improve development quality and level.
  To provide strong technological innovation support for enterprise and brand development, Shanghai Tobacco Group began investing in the construction of the Pudong Technology Innovation Park in 2012, with the park positioned as a "hub for high-end technology and an incubator for high-end products," dedicated to creating an open, diverse, and closely integrated technology innovation system and platform. Shi Chao stated that they will leverage the technological advantages of the innovation park to strive to form a batch of tobacco technology innovation achievements, transforming technological advantages into development advantages for enterprises and brands, injecting momentum into the transformation and development of the enterprise.
  Innovation is aimed at change, achieving development through change. However, in Shi Chao's view, innovation can not only promote change but also promote stability. This stability refers to the consistency of product quality. To ensure that brands like "Zhonghua" can always adapt to changes while maintaining their unique style and stable product quality, Shanghai Tobacco Group continuously innovates in research and process technology, achieving stability amidst change.
  Transformation development is a systematic project. It requires doing a good job in reducing consumption and emissions, learning to summarize experiences and explore innovations, and coordinating and optimizing structures. Shi Chao admitted: "Doing this well is not easy. Although Shanghai Tobacco Group has explored some experiences, there is still much work to be done, and we will strive for this purpose."
  At the end of the interview, Shi Chao expressed that as a representative of the National People's Congress, he will discover and think about issues from a national perspective in the future, focusing on important topics such as "innovation-driven, transformation development," learning more, researching more, exploring more, and striving to provide useful opinions and suggestions for the country, fulfilling the responsibilities and obligations of a representative of the National People's Congress and living up to the expectations of the country and the people.