Early this year, BAT Rossmans increased the prices of its cigarettes and introduced a discount card for the "Glo Pro Slim" electronic cigarette, which industry experts believe was an effective way to increase business profits. This move successfully turned losses into gains and improved the company's market share in the electronic cigarette industry.
The Chief Executive Officer of BAT Rossmans, Eunji Kim, is pictured above.
In a surprising move, BAT Rossmans has increased the prices of its products. The prices of two of its products, Dunhill Fine Cut Smooth Crush and Mellow Crush, have gone up by 300 Korean won. Previously sold for 4,200 Korean won, these two products will now be sold for a new price of 4,500 Korean won.
Regarding the price increase, British American Tobacco provided an explanation stating, "The original price for these two products was 4,500 Korean won, and they were previously on sale at a discount.
Although regular cigarettes sold in South Korea generally cost 4,500 won, British American Tobacco (BAT) Rossmans has introduced a new product at a special price to increase its competitiveness and gain a larger market share. However, due to the persisting trade deficit, analysts believe that raising prices is a way to increase profitability.
With the growth of the tobacco market at the beginning of the year, the company is actively implementing marketing strategies to ensure its market share in the electronic cigarette industry. Since last month, BAT Rossmans has been conducting promotional activities, offering first-time buyers of Glo Pro Slim an 80% discount and selling it for KRW 9,900. Existing members with a purchase history can purchase the product at a discounted price of KRW 29,900, enjoying a 40% discount.
BAT Rossmans released its Q1 earnings report, which showed a slight decrease in its market share for regular cigarettes from 12% in 2018 to 11%. On the other hand, the market share for e-cigarettes doubled from 6% in 2020 to 12%, which is a notable performance.
After introducing the cigarette-shaped electronic cigarette "Glo 1" for the first time in 2017, it captured the lifestyle and needs of adult smokers with precision and gained a double-digit market share in the domestic market with the launch of "Glo Mini", "Glo Pro" and other products. It has entered the top five in the domestic electronic cigarette market.
An industry insider has stated that "BAT Rothmans is implementing a radical strategy to capture profitability and market share.
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