“Innovative products with fine cigarettes as the main body have become the new kinetic energy of the development of the industry” and are regarded as one of the three landmark achievements in the development of the industry in the past five years. (Excerpted from the National Tobacco Work Report of 2018).
In 2018, the number of innovative products such as short-term bursts in the industry increased by 1.609 million boxes, an increase of 50.8%. The development momentum of innovative products in 2019 is not diminished. Innovative products such as short and medium bursts are referred to as: innovative products.
Innovative products are expected to achieve three breakthroughs in sales in 2019: fine cigarettes over 4 million boxes, medium cigarettes over 1 million boxes, and bursting tobacco over 1 million boxes (excluding industry planning and control factors). As of the relevant (January to June 20) sales data: 2.287 million boxes of fine cigarettes, an increase of 541,300 cases, an increase of 31%; medium cigarettes, 491,900 cases, an increase of 231,900 cases, an increase of 23%; The smoke was 579,200 cases, an increase of 193,500 cases, an increase of 50%.
First, the innovative product market conforms to the “three trends” of the cigarette market in the new situation, and takes the compliance trend as a new starting point.
1. Innovative products conform to the diversification of cigarette consumption, taking consumers' new needs as a new starting point.
With the introduction of some macro policies in recent years, cigarette consumption behavior is undergoing profound changes. Differentiation of consumption choices: old smokers have higher brand loyalty and relatively fixed smoking habits; new smokers do not pursue traditional products, pursue freshness, advocate individuality release, and have new demands on taste and packaging; Enhanced, some smokers' demand for food has turned into a preference for new tobacco products. It can be foreseen that conspicuous and comparative consumption is significantly reduced; individual consumption, self-priming consumption, and rational consumption will become the mainstream trend of cigarette consumption.
2. Innovative products conform to the trend of cigarettes, support the trend of structure, and take the new positioning of the industry as a new starting point.
In the past ten years, the benefits of cigarettes have grown significantly due to the “sales + structure” two-wheel drive. Nowadays, China's macro economy is moving from the rapid growth of the past to the "new normal" development of medium and high-speed growth. Cigarette consumption has entered the stage of "high-basic platform and low-speed development", and the total growth has been difficult. Especially in 2015, the performance was outstanding. The adjustment and implementation of the cigarette tax increase policy in the same year brought the pressure of cigarette sales to double, and the sales volume showed negative growth in the year. The inflection point was very obvious. Cigarette business is facing shifting, and its efficiency will be biased on the “structure” upgrade.
In the industrial context of “total control, tight balance, reasonable growth, and continuous”, the “license plate” for cigarette specifications will become a scarce resource. In 2018, the number of cigarette brands was 88, a decrease of six over the same period last year. After fully absorbing the epiphany of the after-sales cigarette market, the industry's positioning and planning of innovative products is well prepared, and innovative products that shoulder the “structural improvement” will receive more “license” resources.
3. Innovative products conform to the trend of cigarette brand extension, and take the new law of brand as a new starting point.
Some strong conventional cigarette brands will not be able to smoothly extend the brand benefits to innovative products such as short and medium bursts, and the use of co-brands across categories will not resonate with consumers. There is a brand split between conventional cigarette brands and innovative product brands.
Maotai liquor is the industry leader, and Maotai beer disappears. The slogan "Moutai Beer, Maotai in Beer" is not shocking and cannot detain consumers' interest. Because the consumer demand of the two types of consumers is different, the group that agrees with Maotai liquor cannot be directly copied into the group of Maotai beer. Forcibly extend the brand across categories, but it is a self-locking rope lock.
Compared with the conventional cigarette market, the layout of the innovative product brand has not yet been fixed, and the leading edge is not out of reach. The rookie brand has the opportunity to rise beyond the curve, and the competition space still exists.
There are always days. Some brands can adapt to the changing rules of the new market, develop their strengths and avoid weaknesses, develop innovative product markets and achieve the cornering of the new track. For example, in the first six months of this year, the top three cigarettes in the mid-tobacco market accounted for the top three titles of Jiaozi (X), Harbin (Old Bazhan) and Changbai Mountain (Wangchun Zhongzhi); The first one is expensive (crossing); all are non-traditional strong brands.
Consumers of the innovative product category represented by fine cigarettes were born in the 70s, 80s, and 90s, the largest of which was 70 years old and nearly 50 years old. These three generations have caught up with the wave of mobile Internet that has never existed in history. In the era of the greatest dissemination of autonomy in these three generations, each individual has the autonomy of communication, and the "everyone's communication to all people" becomes a new format of communication.
The power of the traditional media, the brand, has made the world's power gradually weak. In particular, the brand of fast-moving consumer goods, the concept of a single product wants to "play the father and son soldiers, cover the old and the young", will be fleeting like a meteor. In the previous case, Evergrande tried to copy the brand model to Evergrande Ice Spring. As a result, Evergrande Real Estate smashed and died of Evergrande Ice Spring.
In other words, a new generation of consumers is more loyal to their preferences than to a “brand+” cross-product. Using social media marketing with caution is not the same as disabling. "Whoever masters the Internet, whoever grasps the initiative of the times. He is good at using social media platforms, and he will "walk through the road, and I will go up and down."
2. Three new kinetic energy for innovative products under the new situation
1. The historical mission is to give new kinetic energy to cultivate innovative product market.
In the first quarter of 2019, the sales volume of innovative products represented by fine cigarettes increased by 41.4% year-on-year, accounting for 13.69%, reaching the highest level in history; the contribution to the sales volume of the industry was 145.55%, which was also the highest level in history.
As early as the 2018 National Cigarette Sales Work Conference, the National Bureau made specific arrangements for promoting the high-quality development of cigarette marketing. Emphasizing that the spirit of the 19th National Congress of the Communist Party of China and Xi Jinping's new era of socialism with Chinese characteristics should be used as a guide to accurately grasp the internal and external challenges faced by cigarette marketing, and to prepare for the war of preventing and resisting risks, and to make a strategy of turning crisis into opportunity. Actively promote the promotion of high-quality development of cigarette marketing in the new situation. Cultivating innovative product markets is a specific response to internal and external challenges, prevention and protection against risks, and achieving high-quality development.
2. Brand development is a new kinetic energy that fosters the market for innovative products.
Innovative products have changed from “tributaries” in consumer demand to “mainstream” and have become the mainstay of the cigarette consumer market. Cultivating innovative product brands is an inevitable choice to maintain the brand's sustainable and healthy development. Strengthening innovative product products is an inevitable choice for both industry and commerce to enhance development. Especially in the innovative product market track, the rookie brand has the power to achieve the cornering beyond and the strength of the latecomer.
3. The development of the global cigarette market is a new kinetic energy that fosters the market for innovative products.
According to the "World Tobacco Development Report of 2018": In 2017, Euromonitor statistics of 78 cigarette consumers (excluding China) sold about 2.86 million boxes of cigarettes, an increase of 6%; about 2.2 million boxes of popcorn smoke, growth 27.2%.
The degree of economic globalization and regional economic integration has been continuously strengthened, and the country's “One Belt, One Road” policy has been steadily advanced. China's innovative products have the opportunity to realize the dream of making achievements in the international market in the “two leapfrogging” development strategy. Compared with the conventional Chinese cigarettes, the international market has been unremittingly developed for more than ten years. The innovative products are the most powerful and the most advanced technology to “go out” brands and products.