IQOS has achieved impressive results in Japan. Since its launch in Japan in 2014, iQOS has rapidly captured 12% of the market. In fact, the biggest challenge for parent Philip Morris International is the need to continually produce enough products to meet the needs of consumers.
In May of this year, iQOS went public in Korea with similar successes. After the IPO, iQOS surpassed Japan in the same period and became the fastest growing IQOS market. It is reported that iQOS's market share in South Korea reached 2.5% in just a few months at Philip Morris's third-quarter earnings announcement on Thursday, October 19, Japan's success is not an exception. Phillip Morris International incumbent Asia President Martin King attributes the success of iQOS in South Korea to the widespread awareness of iQOS in Japan. Martin King, who will become Philip Morris' CFO on January 1, declares, "We believe that more than 50% of South Korean adult smokers are now aware of IQOS, although we have not yet rolled it out across the country."
Tobacco company a new era?
The success of iQOS set a good business opportunity for Philip Morris International and its strong sales helped offset some of the decline in sales of traditional cigarettes. To date, the company has invested more than $ 3 billion on iQOS, with Philip Morris betting on a new type of tobacco product with reduced toxicity. The company said it hopes to phase out traditional cigarettes in the next 10 years. Interestingly, the iQOS experience more closely resembles smoking cigarettes than e-cigarettes. And that's where the key lies, PMI says he does not want to attract any non-smoker, just trying to replace the traditional smoker's traditional cigarette with a less harmful new iQOS product until it is completely out of the traditional cigarette industry.
Other tobacco makers are also turning to new tobacco products. Although iQOS enjoys a significant market share in this category, competition is intensifying as global and domestic tobacco companies roll out their own smoke-free products. In June of this year, JT introduced Ploom Tech, and South Korea KT & G also launched a smoke-free device in September. In China, as a leading manufacturer of e-cigarettes, Chinese tobacco companies are also busy developing their own non-combustible tobacco products. Sichuan Tobacco even brought the "width and width" of their heating and non-combustion equipment to South Korea for market research on potential product launches.
Introduce a company that produces iqos products: