China Tobacco
 |
|
|
Native name
|
中国烟草总公司 |
|---|---|
| State-owned enterprise | |
| Industry | Tobacco |
| Founded | January 1982 |
| Headquarters | Beijing, China |
|
Area served
|
China |
|
Key people
|
Ling Chengxing (凌成兴, President) |
| Products | Cigarettes |
| Owner | Chinese Central Government |
| Website | www |
China National Tobacco Corporation (commonly known as China Tobacco, abbreviated as CNTC) (Chinese: 中国烟草总公司 Zhōngguó yāncǎo zǒng gōngsī) is a Chinese state-owned manufacturer of tobacco products. It enjoys a virtual monopoly in China, which accounts for roughly 30% of the world's total consumption of cigarettes, and is the world's largest manufacturer of tobacco products measured by revenues.
The company was supervised by State Tobacco Monopoly Administration, while the Ministry of Finance of the People's Republic of China acted as the shareholder.
Although a national behemoth with 98% of the domestic market, the organization trickles down locally. China Tobacco contracts out orders to smaller, local factories. In turn these factories fill orders and deliver them for distribution to China Tobacco’s distribution chain. The smaller local factories pay a sort of tax to China Tobacco, but keep much of their profit. In turn, retail distributors buy cigarettes from China Tobacco, and the profits China Tobacco realizes from those sales is in turn taxed by the State Tobacco Monopoly Administration (STMA).
CNTC is under the jurisdiction of State Tobacco Monopoly Administration (also founded in 1982); this organization is responsible for enforcing the tobacco monopoly in China. While the STMA manages the monopoly, China Tobacco is the corporate body responsible for marketing, production, distribution, and sales of tobacco products.
Advertising in print, radio, and television has been banned in China, and even outdoor ads require prior approval provided they are not in one of nearly 100 local jurisdictions where outdoor tobacco ads are banned. These restrictions have forced China National into a strategy that harkens back to the 60's and 70's in the United States; with "cigarette girls", attractive women dressed in brand logos, handing out samples, lighters, and promotional material in front of clubs and bars. Another form of circumvention is printing outdoor advertisements in the name of another entity, the latter's name being clearly printed on the material. For example, the Hongtashan brand mentioned above has recently published their new climbing-themed advertisements through a Hongtashan Climbing Club.
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Wikipedia