A foreign tobacco company recently launched a new product in order to compete in the heated electronic cigarette market in South Korea.
The sales price of these products, however, is twice as high as in Japan, which has sparked controversy. Although the products launched in Korea are new, they have been available in Japan for a year already, and some critics argue that their high price is taking advantage of Korean consumers.
Icos Iluma One will be available for sale domestically in South Korea starting February 16 for a retail price of KRW 69,000 (approximately CNY 369).
However, in Japan, it is priced at less than 39,000 South Korean won, which is only 3,980 Japanese yen (approximately 208 Chinese yuan), making it about 80% cheaper than in South Korea.
In addition, convenience stores in Japan have been consistently hosting discount events. All three products in the Iluma series are currently discounted by 2,000 yen, with Iluma One’s price set at 1,980 yen. Even after factoring in international shipping costs, this price is much cheaper than purchasing directly from Japan.
The price of South Korea's heating non-burning equipment is also higher than that of Japan's, including BAT's newly announced product.
The "GloHyper X2," which went on sale in South Korea on the 27th of this month, is priced at 40,000 Korean won (equivalent to 214 yuan), which is twice the price in Japan.
Korean consumers are unhappy that tobacco-related taxes have not been raised and the cost of machinery and equipment, which is subject to only a 10% value-added tax in Japan, is higher in Korea than in Japan.
Mr. Cui, Yeayeo Island – I am very uncomfortable about the fact that prices in South Korea are higher. I believe they should be more affordable.
Jin Caiyan, from Fuchuan in Gyeonggi Province, stated, "I don't believe that doubling the price is justified. That's why I have found many websites where I can directly purchase items from overseas.
A foreign tobacco company explains that their pricing policies take into account factors such as the timing of release in each country, the local tobacco market, and distribution environment.
Emma Dean, the General Manager for the BAT (British American Tobacco) North Asia market, stated that pricing varies based on different factors and market conditions. There are differences in distribution, labor, and production, leading to slight variations in each market. This is similar to how the sales price of Apple's iPhone differs in each country.
However, some people have pointed out that even though situations vary between countries, it is unjustifiable for electronic cigarettes to be twice as expensive as neighboring countries like Japan.
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