Korea's First Application of 'Demi Slim' Stick
Tobacco Leaf Content 30%, Deep and Rich Flavor
Induction Heating Technology... Enhancing Consumer Convenience
Eunji Kim, CEO of BAT Rothmans, is introducing the 'Glo Hyper X2' at a press conference held on the 14th at Lotte Hotel in Jung-gu, Seoul.
BAT Rossmann has introduced a new heated tobacco electronic cigarette device, reigniting competition in the domestic e-cigarette market from the beginning of the year. Attention is focused on whether BAT Rossmann's new product launch can create cracks in the domestic market structure, which is currently dominated by the duopoly of KT&G and Korea Philip Morris.
On the morning of the 14th, BAT Rossmann held a press conference at the Lotte Hotel in Sogong-dong, Jung-gu, Seoul, announcing the official launch of the new product, 'glo Hyper X2,' in South Korea.
The glo Hyper X2's most notable feature is that it uses the 'Demi Slim' heated tobacco format for the first time in Korea. Demi Slim is a dedicated stick that is thicker than the existing Super Slim by increasing the tobacco leaf content by 30%, allowing users to experience a richer flavor. Additionally, for the first time in the glo series, the boost mode and standard mode buttons are separated, enabling users to select their preferred heating method. In standard mode, heating is completed in about 20 seconds, allowing approximately 4 minutes of use, while in boost mode, it is ready in about 15 seconds, providing a faster and more intense experience of glo's rich flavor.
Consumer convenience has also been enhanced. The device is equipped with an iris shutter to protect it from dust and foreign substances, and LED indicators make it easy to check charging and heating status as well as the start of boost mode. The glo Hyper X2 features a two-tone design combining a matte texture with glossy metallic accents and is available in five colors: Mint Blue, Metal Black, Metal Orange, Black Red, and White Gold.
Kim Eun-ji, CEO of BAT Rossmann, said, "It is an honor to introduce glo's latest heated tobacco electronic cigarette device, the Hyper X2, to Korean consumers," adding, "We are confident that we can provide Korean consumers with a high-quality and satisfying experience."
The glo Hyper X2 will be officially sold from the 27th of this month through the official glo online store, convenience stores nationwide, and major e-commerce platforms such as Kakao, Naver, and Coupang, priced at 40,000 KRW. The glo-exclusive sticks, 'Neo,' will be launched in four types: 'Neo Purple Boost,' 'Neo Boost,' 'Neo Dark Tobacco,' and 'Neo Fresh,' priced at 4,800 KRW each.
With BAT Rossmann also launching a new product, competition in the domestic heated tobacco e-cigarette market is expected to heat up further. Earlier, Korea Philip Morris announced on the 8th that it would release the 'IQOS Iluma One.' This product strengthens the lineup with a value-oriented model just three months after launching the 'IQOS Iluma Series' last October, strongly demonstrating Korea Philip Morris's determination to reclaim the lead. Unlike the existing Iluma, the Iluma One is designed as an integrated device without a separate charging holder, enhancing convenience, and its price has been reduced by about 30%.
KT&G, which rose to the top of the market share last year, introduced the new product 'Lil Able' in November and has already expanded its sales channels nationwide. Lil Able is the first heated tobacco e-cigarette equipped with 'smart artificial intelligence (AI)' technology, featuring an optimal usage environment from preheating to charging by utilizing AI technology. One device can use three types of dedicated sticks.
Meanwhile, the domestic heated tobacco e-cigarette market size is showing rapid growth. According to the Ministry of Economy and Finance, domestic sales of heated tobacco e-cigarettes reached 540 million packs last year, a 21.3% increase compared to the previous year. It was the first time that more than 500 million packs of heated tobacco e-cigarettes were sold in a year. The share of heated tobacco e-cigarettes in the total tobacco market rose from 2.2% in 2017 to 14.8% last year. In contrast, sales of conventional cigarettes decreased by 1.8% to 3.09 billion packs.
Ellie Kritikou, Global THP Category Head of BAT Group, is introducing 'Glo Hyper X2' at a press conference held on the 14th at Lotte Hotel, Jung-gu, Seoul.
On the same day, BAT reiterated the group's vision of 'A Better Tomorrow' and announced its goal to achieve 5 billion pounds (approximately 7.5 trillion KRW) in sales from new categories by 2025. Furthermore, the company plans to increase the number of users of non-combustible products, including heated tobacco e-cigarettes, to 50 million worldwide by 2030 and pursue sustainability by reducing the health impact of its business.
As of 2022, BAT Group's sales of new category products approached about 3 billion pounds (approximately 4.6 trillion KRW). Additionally, the number of global consumers of non-combustible products reached about 22.5 million. The domestic market is also accelerating the paradigm shift toward non-combustible products accordingly. In fact, glo's market share in the domestic heated tobacco e-cigarette market nearly doubled over the past two years, rising from about 5.8% in 2017 to 11.7% last year.
Ellie Kritiku, Global Head of THP, emphasized, "Korea is one of the top markets for heated tobacco e-cigarettes within the BAT Group and plays a very important role in achieving BAT Group's goal of 'A Better Tomorrow.' By introducing this new product to Korean consumers, we will further accelerate the transformation through non-combustible products."
Last October, BAT Group announced the results of a one-year clinical study demonstrating the excellence of glo as a 'reduced-risk product.' The study showed that adult smokers who completely switched from conventional cigarettes to glo exhibited continuous improvement in many potential harm indicators compared to those who continued using conventional cigarettes.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
