China National Tobacco Corp - Brands

Brands

China National Tobacco, like many other tobacco companies, produces a plethora of brands – over 900, the largest of which, Hongtashan (Red Pagoda Hill), accounts for only 4% of total sales. Though, unlike with manufacturers outside of China, the vast majority of cigarettes sold in China are of very low quality. Up to 75% of China's population still resides in rural farming regions, and they simply cannot afford high or even mid-priced cigarettes. Therefore, Class D quality cigarettes enjoy the highest production rates in China, while Class C quality cigarettes bring in the largest gross profit. However, high-quality national brands do exist in China, though they are very hard to find outside of major cities and reputable retailers.

Trends in cigarette buying have not been lost of China either. In recent years several varieties of cigarettes targeted at women have been released (breaking a longstanding taboo). Varieties common internationally are just as common in China: Unfiltered, Filters, Lights, Ultra Lights, 100's, and 120's are all available in a variety of brands.

Foreign brands are to this day not unknown in China, since their introduction with the advent on China National and the STMA. Marlboro, 234, Camel, Kool, Lucky Strike, 555, and a variety of other brands can all be found in large cities in China. However, while these cigarette brands are marketed as premium brands outside of China, within China these cigarettes are made locally under license from local tobacco, and their quality usually falls to a mid-range (with certain exceptions for cigarettes still made solely outside of China, like Lucky Strikes and Marlboro). Foreign sales make up only 3% of the Chinese market, yet this still accounts for a respectable 51 billion cigarettes every year.