Industry Analysis & Industry Trends
Industry revenue is expected to increase by 14.0% in 2011 to $97.99 billion by the end of the year, with annualized increases of 14.4% in the past five years (constant 2011 dollars). Strong 2011 growth was mainly driven by accelerated cigarette output and moderate inflation in China during the year. The economic slowdown in China and around the world in 2008 and 2009 had little direct effect on this industry as the demand elasticity for cigarettes is quite low and stable, and because cigarette prices are very low in China.
However, increasingly stricter controls by the government on cigarette smoking in public places and other buildings will have negative impacts on the performance of this industry in the future.... purchase to read more
Industry Report - Starting a New Business Chapter
The establishment of an enterprise producing tobacco products is subject to the approval of the Department of Tobacco Monopoly Administration (DTMA) under the State Council. All enterprises wanting to enter the industry must obtain a license for tobacco monopoly production enterprises, and then register with, upon the DTMA's examination, and obtain approval from the Administrative Department for Industry and Commerce.
There is significant brand loyalty among consumers and this is supported by in-store promotions. The integration of production and distribution by existing companies make it difficult for a major new entrant to become established... purchase to read more