CHINA/INTERNATIONAL. A strong growth in the number of Chinese travellers visiting Europe has led to sales of Chunghwa cigarettes soaring +15% to +20% year-on-year in Europe.
Gold Bond Enterprises Commercial Director John Polo told The Moodie Report: “We are expecting to see growth of this kind for the next five years at least, that is, if there are no disasters.”
The company, which is the agent appointed by Shanghai Tobacco to serve the European market is also trying to expand the cigarette brand’s listings. “We are particularly keen on the German and Spanish markets,” said Polo.
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Chunghwa cigarettes are already available at travel retail outlets in London, Amsterdam, Zurich, Geneva, Milan, Rome, Paris and Greece.
Polo points out that The Nuance Group, which sells the cigarettes at its Swiss stores, has also teamed up with Chinese travel agencies to distribute booklets listing top-selling items in duty free, one of which is Chunghwa. Travellers get these English/Chinese booklets on their flights, and when they arrive at the airport, they are ready to buy. This move, said Polo, has helped to grow sales.
With prices about -25% to -30% lower in European duty free outlets than in China’s domestic market, Chunghwa cigarettes are flying off the shelves, he said.
Polo recalled that a retailer in Milan said that the problem facing retailers selling Chunghwa is how small retail outlets could store the cigarettes efficiently. “When a Chinese group arrives at duty free, the first one or two people sweep all 20 or 30 cartons off the shelves, and while there are others who want to buy, by the time the floor staff get to the stock, the customers would have boarded,” said Polo.
The company has now also been appointed by Shanghai Tobacco to bring the Golden Deer and Double Happiness brands to Europe.
“We’re trying to get the reactions of customers to these brands during this TFWA World Exhibition,” said Polo.
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