Heated Tobacco Electronic Cigarette 'Ploom Advanced' First Released in Korea
Unlimited Inhalation for 5 Minutes with 'HeatFlow' Technology
'No Compatibility Between Manufacturers' Electronic Cigarettes Lock-in Effect Remains a Challenge
JTI Korea is making a renewed attempt to enter the domestic heated tobacco market after three years. As the Korean tobacco market is clearly shifting from traditional cigarettes to electronic cigarettes, the company has determined that it can no longer stand by passively. JTI Korea aims to overcome its late market entry with differentiated product capabilities and aggressive marketing.
JTI Launches Heated Tobacco 'Ploom Advanced' for the First Time in Korea
JTI Korea, the Korean branch of Japan Tobacco International (JTI), held a press conference on the morning of the 28th at the Fairmont Hotel in Yeouido, Seoul, to unveil its new heated tobacco product, 'Ploom X Advanced.'
The most notable feature of the newly revealed Ploom Advanced is the application of a special 'Heatflow' technology that maintains an optimal heating temperature, enhancing energy efficiency and battery life. When using the device, users can inhale without limit for 5 minutes per session and can use up to three sticks consecutively. With a full charge of 90 minutes, up to 20 sticks can be used.
Frederic Estripeau, Marketing Director, who introduced the product that day, emphasized, "It was developed to deliver the authentic taste of tobacco with meaningful satisfaction without smoke, odor, or ash." He added, "By indirectly heating the sticks without combustion, potentially harmful substances have been reduced." He further explained, "This has resulted in an average reduction of 90-95% in nine toxic substances designated by the World Health Organization (WHO), and improvements in personal hygiene aspects such as reduced tobacco odor and less teeth staining."
David Wheeler, President of JTI Korea, is making a presentation at the press conference commemorating the launch of 'Plume Advanced' held on the 28th.
JTI Korea also highlighted design as a strength alongside Heatflow technology. Director Estripeau explained, "The device focuses on harmonizing simplicity and intuitiveness," adding, "It is designed with smooth curves to fit comfortably in the hand, enhancing the user experience." He emphasized, "Above all, heating starts simply by sliding open the cover and inserting a stick. The device omits all complicated buttons, making it very easy to use."
Additionally, the device can be customized to suit user preferences. Ploom Advanced will be released in four colors: 'Slate Gray,' 'Navy Blue,' 'Black,' and 'Silver,' and offers 10 front panel colors and 6 types of back cover options, providing over 200 choices in total.
Ploom Advanced uses Ploom-exclusive 'MEVIUS' sticks, which come in five varieties: 'Deep Regular,' 'Ice Cold,' 'Purple Option,' 'Bays Option,' and 'Shine Fresh.' The new device will be available for purchase on the Ploom website starting November 4, priced at 69,000 KRW. The dedicated refill sticks will be stocked in convenience stores in the Seoul area beginning November 12.
"Convenience Store Exclusive Showcase... Boosting Presence with Aggressive Marketing"
JTI Korea’s decision to re-enter the electronic cigarette market is ultimately attributed to the continuous growth of the heated tobacco market. Previously, JTI Korea entered the domestic electronic cigarette market in 2019 with the capsule-type electronic cigarette 'Ploom Tech,' but discontinued the business in 2021 due to low market share and the impact of boycotts against Japanese products. However, with competitors continuously launching new flagship electronic cigarette devices, the company decided it could no longer ignore the market. Although the domestic tobacco market saw a slight decline in sales volume last year compared to the previous year, heated tobacco products continued to grow and became the market’s center.
According to the Ministry of Economy and Finance, domestic heated tobacco sales reached 610 million packs last year, a 12.6% increase from 540 million packs the previous year. Sales of heated tobacco, which were around 80 million packs in 2017, have increased nearly eightfold over six years. The sales share, which was only 2.2% of the total tobacco market in 2017, rose to 16.9% last year.
On this day, JTI Korea stated that it would overcome its relatively late market entry compared to competitors through product competitiveness and aggressive marketing. David Wheeler, President of JTI Korea, said, "Although we are a latecomer, we are confident in presenting a product that can compete properly in the market," adding, "We will target the market by approaching consumers focusing on the product’s strengths." He also mentioned, "We plan to enhance product promotion and accessibility by installing dedicated showcases called refill stations in convenience stores."
He expressed determination to gradually increase market share. Wheeler said, "Ploom Advanced is scheduled to launch in 25 markets in the near future," and added, "We will actively pursue sales aiming for a double-digit market share globally, including Korea, within the next three to four years." Regarding the limited launch in the Seoul area, he explained, "Electronic cigarettes are complex and costly products, so we judged that selective launches are better than launching in all markets at once," and added, "After a smooth landing in Seoul, we plan to respond by expanding sales channels according to consumer demand."
With JTI Korea’s re-entry, the domestic electronic cigarette market is expected to be reshaped into a four-player structure. The domestic heated tobacco market is currently dominated by KT&G’s 'Lil' and Philip Morris Korea’s 'IQOS' in a duopoly, with BAT Rothmans pursuing with 'Glo.' However, the lock-in effect of electronic cigarettes is considered a challenge for JTI Korea. Since devices and sticks from different companies are not compatible, purchasing a relatively expensive device is essential to use a new manufacturer’s product. This is why JTI Korea’s market penetration is expected to be challenging.
Meanwhile, JTI Korea plans to prepare for a new leap forward with a consumer-centered management strategy, starting with this product portfolio expansion. Earlier, President Wheeler stated, "As of October, we reorganized our sales organization to establish a more efficient and flexible management system," adding, "This will secure sustainable growth engines and competitiveness, enabling us to respond more swiftly to market changes."
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