Korea’s lil, Japan Tobacco’s Ploom, BAT’s glo, and PMI’s IQOS

 　According to Asia Economy News, Korea Tobacco & Ginseng Corporation (KT&G) held a press conference on November 6 this year to officially launch its cigarette-type electronic cigarette. With this, the Korean electronic cigarette market has formed a "tripartite confrontation" following PMI's iQOS and BAT Korea's glo.

 

　　British American Tobacco's glo   　　Cigarette-type electronic cigarettes, also known as heated tobacco, are a new type of tobacco product. Unlike regular tobacco cigarettes, cigarette-type electronic cigarettes are specially made to inhale vapor. Because the taste of tobacco is similar to that of regular cigarettes, and the tar content and other harmful substances are significantly reduced, they have attracted people's attention. In recent years, major global tobacco giants have accelerated the research and development and market layout of heated tobacco products, especially British American Tobacco (BAT), Philip Morris International (PMI), and Japan Tobacco (JT). Both BAT and PMI have already entered the Korean market.   　　Philip Morris International's iQOS   　　In fact, KT&G originally planned to launch the electronic cigarette in September this year, but the government's increase in the cigarette tax on electronic cigarettes forced the launch to be postponed to November. The company will release an electronic cigarette device called "lil" priced at 95,000 won (approximately 566 RMB) and a tobacco stick called "fit" priced at around 4,000 won (approximately 24 RMB). Especially, the upcoming fit is compatible with iQOS, and with a lower price than other brands, the industry predicts that KT&G's launch of the electronic cigarette will change the market landscape.   　　Japan Tobacco's Ploom   　　KT&G plans to first launch fit, which will only be sold at GS25 convenience stores. Some voices believe that although KT&G, which had a market share of 61.5% in the third quarter of this year, dominates the regular cigarette market, it is still in the trial phase in the electronic cigarette sales channel.   　　According to the Korea Herald, KT&G, Korea's largest cigarette manufacturer, recently launched its heated tobacco device lil at a press conference in Seoul, becoming the third tobacco manufacturer to release a product line after Philip Morris International Korea and British American Tobacco Korea. It is expected that price competition in the industry will further intensify due to KT&G's entry.   　　KT&G's pricing for lil will be 95,000 won (85 USD). However, customers can apply for coupons through its website, which will reduce the price at GS25 convenience stores to 68,000 won. This is seen as KT&G's move to establish a foothold in the heated tobacco market.   　　Its price is lower than the 97,000 won price of PMI's iQOS device and lower than the 70,000 won price of BAT's glo, both of which have discounts.   　　KT&G also stated that even if the government increases related taxes in the future, it is unlikely to raise the price of tobacco sticks. Lim Wang-seop, head of the company's innovative products department, stated: "The company currently does not consider raising the price of tobacco sticks. If the government decides to increase tobacco taxes, KT&G will discuss and observe the market. However, the company may just maintain the current price to gain market share."   　　The price for each pack of tobacco sticks for KT&G's device is 4,300 won, which is the same as other heated tobacco cigarettes. PMI and BAT had previously stated that if Congress increases related taxes, they might raise the price of tobacco sticks.   　　KT&G will start accepting pre-orders for its products at GS25 convenience stores from November 13 to 16, and sales will begin on November 20. The company plans to expand its sales suppliers nationwide.   　　KT&G added that they plan to focus first on the domestic market but will develop plans for overseas markets. Currently, the company has not disclosed when it will enter Japan, the world's largest heated tobacco product market.