Key points:
South Korean tobacco company KT&G is transferring its HNB device production base from Vietnam to Malaysia.
Due to policy changes in Vietnam causing production interruptions, KT&G temporarily suspended sales of the "lil Hybrid 3.0.
After the production base was relocated, the supply issue was resolved at the beginning of this month.
After the supply is restored, KT&G is expected to consolidate its leading position in the South Korean HNB market.
Currently, KT&G's "lil" series holds a market share of approximately 46% in South Korea, surpassing Philip Morris International (PMI)'s "iQOS.
According to News1 on May 9th, South Korean tobacco company KT&G has relocated the production base of its HNB device "lil Hybrid 3.0" from Vietnam to Malaysia, and resumed normal supply earlier this month.
KT&G's subsidiary, which produces HNB devices, previously had a factory in Hanoi, Vietnam. However, due to a sudden notification by the Vietnamese government in December last year to shut down the factory without a transition period, production was interrupted and supply became unstable. This policy change led to KT&G halting the sales of "lil Hybrid 3.0" in convenience stores and other sales channels in February.
Although it was initially expected that supply issues would continue until the end of next month, KT&G sped up the relocation of its factories and ultimately resumed equipment supply and distribution in the Korean market at the beginning of this month.
With the supply issues being resolved, KT&G is expected to further solidify its leading position in the HNB market in South Korea in the second half of the year. Currently, the "lil" series holds about 46% market share in South Korea, ranking first and facing fierce competition from Philip Morris International's "iQOS" product, with only about a 1% difference in market share between the two.
Representatives from KT&G stated that:
"Due to supply issues caused by changes in Vietnamese policies, the problem is being quickly resolved and products have been restored to supply since the beginning of this month. With the normalization of supply, we expect to further consolidate our leadership position in the HNB market."
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
