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« : 13 Февраль 2013, 16:51:29 » |
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В конце прошлого года ваш покорный слуга принял участие в фокус-группе от этой мониторинговой компании. Со мной связались представители оной и задавали массу вопросов о состоянии нашего российского сигарокурения. Я честно ответил на вопросы и вот недавно получил от них копию их отчёта. Сразу скажу, что многое в этом отчёте у меня вызвало недоумение, но в целом и общем картинка похожа на правду. К сожалению, не стал переводить. Поэтому и разместил этот репорт в закрытом разделе. Читайте!
LUXURY CIGARS IN RUSSIA -
CATEGORY ANALYSIS
HEADLINES
• Luxury cigars grows by 11% in current value terms in 2012, continuing the improvement of the post-crisis period and reaching sales of RUB814 million
• The increasing interest in aficionado culture stimulated by the activity of cigar clubs raises appreciation of high quality tobacco brands and the exclusive process of their consumption
• Tobacco specialist retailers is the most popular distribution channel for luxury cigars, despite increasing interest in foreign websites which can provide both better prices and various novelties
• Luxury cigars will see a CAGR of 5% over the forecast period, with sales of more than RUB1 billion in 2017
TRENDS
- The process of smoking cigars in Russia is historically associated with success and higher social classes. The typical luxury cigar smoker in Russia is an affluent person eager to consume only the best quality products, whether traditional or new, and ready to pay a higher price than in other European countries. While aficionado culture is only in the early stages of development in Russia and the number of real admirers of luxury tobacco goods is modest, they tend to organise clubs with regular meetings. The appreciation of the cigar smoking process as a ritual is resulting in increasing numbers of tobacco specialists and specialist published literature, in addition to internet portals.
- The market for luxury tobacco in Russia is expanding both in terms of volume and value sales. However, the dominant reason for current value growth is closely connected with the switch to more expensive kinds of cigars. Besides that, luxury cigars retailers put high margins on products, thus they are able to keep a stable sales flow. The strengthening purchasing power of Russian cigar smokers supports their growing appetites.
- The tradition of cigar smoking is not strong in Russia in comparison to other countries such as Cuba and Spain. Despite the fact that during Soviet times Cuba was distinguished as a strategic partner and lots of hand-made cigars appeared in the market, at the moment a large proportion of cigars sold in Russia are counterfeit. Producers of Cuban cigars have a lot of difficulties fighting against illegal production. They put a lot of effort into educating Russian consumers and teaching them to distinguish authentic products from well-made fakes by providing shop assistants with organised training, and arranging tastings and presentations. This is having a positive effect, with the gradual decline of fake Cuban cigars in the market.
- Cigars fall under the same regulations as all other tobacco products. Therefore, the category’s development is highly dependent on the decisions of the government. Due to the large number of smokers in Russia and constantly increasing health concerns, the legislation for tobacco goods is becoming stricter. Changing taxation regulations also have a significant impact on industry development. Thus, recently renewed excise regulation required every single cigar to be marked with and new excise mark. Such decisions have two main implications: firstly they raise the end cost of cigars and, secondly, they have negative consequences for non-Cuban cigars. Cuban cigars can easily be sold quickly with old markings due to their high popularity. The sales of non- Cuban cigars can be restrained though and finally result in high non liquid leftover.
- There are several cigar clubs in Russia, and even though their number is smaller than, for example, in the UK, their members are active and devoted. There are two clubs in Moscow – Moskovskije Aficionado and Moscow Cigar Club. The latter one offers specialist literature is the establisher of Cigar University and organiser of cigar tastings for its members and is active in the promotion of aficionado culture to mass consumers. St Petersburg’s aficionado community is represented by three cigar clubs - Petersburg Cigar Club and two private, resembling English-style clubs. It is worth mentioning that the Russian Cigar Association has a significant impact on the development of aficionado culture, uniting cigar clubs and independent tobacco and wine specialists, which arrange various events, thus nurturing consumer perceptions of tobacco smoking. In other big cities, the activity of cigar clubs is not so noticeable, but they also have an impact on the further development of the luxury cigar market.
- Cigar smoking in Russia is traditionally considered to be a male habit. There are also female smokers in Russia, but they prefer smaller luxury cigars or cigarillos. Some producers, therefore, launch product lines to attract female consumers as well. For example, Davidoff produces aromatic mini cigarillos with a soft and sweet taste. Despite such launches, there is no strong trend of moving from luxury cigars to other tobacco products, though it is noticeable that the share of non-Cuban cigars in total luxury cigar market is increasing.
Summary 25 Selected Luxury Cigar Clubs: 2011
Moscow Aficionado
Russian Cigar Union
Cigar Club
St. Petersburg Cigar Club
Source: Euromonitor International from company reports, company research, trade press, trade sources
COMPETITIVE LANDSCAPE
- The most popular cigars sold in Russia undoubtedly come from Cuba. Such brands as Montecristo, Cohiba, Bolivar, and Romeo y Julieta account for the largest share of sales. Davidoff by Imperial Tobacco is also popular. Cuban cigars have the largest appeal to consumers worldwide, and Russia is not an exception. Habanos SA is the leading super premium cigar seller in the world and its Russian subsidiary, Top Cigars, is the largest player in Cuban cigars locally.
- Luxury cigars are traditionally considered to be the prerogative of wealthy people in Russia. With increasing experience and knowledge of the field, the Russian luxury tobacco admirer values the quality of tobacco, pays attention to brand heritage and is eager to try novelties. Growing education has resulted in a decline of counterfeit products in the market, in addition to more precise checks of quality by tobacco retailers. Luxury cigars are believed to survive the competition only in terms of high service, product quality and detailed consultancy provision.
- The tobacco industry cannot avoid being influenced by increasingly strict government legislation. Changing regulations usually have significant influence on both prices and promotional freedom. Thus, recently regulations were introduced limiting advertisements of tobacco related products. The Ministry of Health of Russia is considering a law which would ban sponsorship activity by tobacco companies. It has not been adopted yet, but it may have an influence on the luxury segment if it passes as an official law. Therefore, most brands develop their marketing strategies paying attention to the importance of a presence on the internet, by offering news subscriptions, for example. Some internet sites, such as My Cigars and Cigar Info, gather cigar aficionados together to discuss major events and launches in the cigar industry.
- Top Cigars Corporation, which owns exclusive distribution rights for Habanos SA products in Russia, started active development of aficionado culture in Russia after its establishment. The company provides cigar boutique consultants with serious training and organises cigar tastings together with retailers they have partnerships with. Top Cigar Corporation is the organiser of the Montecristo Golf Cup and Habanos Days in Russia. The latter is an event for tobacco industry professionals and cigar aficionados, who have an opportunity to meet representatives of the tobacco industry from Cuba, enjoy a gala dinner and try out newly launched cigars.
- Luxury cigar admirers are always delighted by novelties in the luxury cigar world. New launches are always discussed on forums and are long-awaited by Russian consumers, who have developed a taste for high quality tobacco. Producers do not fail to meet loyal customers’ expectations and work on new editions of luxury cigars which differ in size, strength and aroma. For example, in 2012, Habanos presented Edicion Limitada at a festival in Cuba, and almost right away the cigars appeared in Russian boutiques. In March 2012, Davidoff launched a new line – AVO 25th Anniversary to honour the famous pianist and aficionado Avo Uvezian. New offers of luxury tobacco keep the growth of the industry positive.
- Russians are known to be among consumers of the most prestigious and expensive cigars. Thus, producers have focused on a high-end segment of luxury tobacco as the strategy for development in Russia. After a long period of exposure to counterfeit cigars, people, who can finally be sure about cigars‟ authenticity with the existence of certified boutiques, are very eager to consume the most expensive genuine tobacco. It is notable, that Muscovites are eager for novelties and now have a tendency to taste different luxury cigars from all over the world and not particularly from Cuba, while St Petersburg luxury tobacco lovers prefer to stick to historically established Cuban cigar brands.
PROSPECTS
- In the forecast period, the activity of organised cigar clubs will become more extensive. Cigar aficionados from the leading cities in terms of consumption, Moscow and St Petersburg, will share their experience with counterparts from the regions. Thus, more retailers will be willing to spread their distribution across Russia. This will allow luxury cigars to maintain positive growth, though dampened by excise increase, with a 5% CAGR and reach RUB1 billion sales in 2017.
- The improving economic situation in Russia, along with increasing aficionado culture, will bring more wealthy smoking people to cigar clubs. Due to this fact, volume growth will be quite healthy. The customer base for luxury cigars in Russia is not large, but the category will maintain a positive dynamic in the forecast period as its core consumers are responsive to novelties and are not usually sensitive to prices. Thus, the forecast CAGR both in volume and value terms will rise compared to the review period.
- Currency fluctuations may negatively affect value sales, but no price increases are likely to scare off the customer, as the affluent Russian smoker of luxury tobacco has a higher purchasing power than in many other countries. The largest threat to growth is the
government‟s intention to generate anti-smoking sentiment among Russians and reduce the number of smokers. However, the likelihood that wealthy, passionate cigar smokers will stop collecting and trying new cigars because of the government‟s actions is not high.
- Prices will be slowly growing in the forecast period, along with excise increases and further rigorous legislation. Currently, retailers set very high margins which allow them to generate large revenues. The increasing costs of the business in terms of taxes and additional regulation will also result in a higher unit retail price.
- Large global producers of luxury tobacco will be willing to work more closely with retailers of their products. Thus, they will organise more training for the staff of cigar boutiques to ensure that their target customer is satisfied with every aspect of the purchase. Besides, Top Cigars Corporation, which is quite new in the Russian market, might initiate more large events for cigar aficionados similar to those happening in Cuba. Festivals and conferences which gather cigar smokers from all over the country might become regular in Russia.
- Currently, Top Cigars Corporation is almost a monopolist in the luxury cigars segment, therefore, it has the highest potential for distribution. It does not own boutiques, but it grants the title Habanos Point to cigar boutiques in which Habanos cigars are kept according to established technologies. This is done to ensure that clients get the best service and genuine products when buying Cuban cigars, which positively affects customer loyalty. Wine and tobacco specialists are usually the most popular luxury tobacco distribution channels, however, the tendency to purchase tobacco online, especially from overseas retailers, is increasing. The internet will be developing further as a retail channel. The share of non-store retailing, which is about 10%, will grow in the forecast period. The importance of web portals and official websites will be increasing along with the further expansion of broadband internet and higher Russians computer literacy.
CATEGORY DATA
Table 39 Sales of Luxury Cigars: Value 2007-2012
RUB million 2007 2008 2009 2010 2011 2012
Luxury Cigars 654.7 741.9 641.5 664.2 732.3 814.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Table 40 Sales of Luxury Cigars: % Value Growth 2007-2012
% current value growth
2011/12 2007-12 CAGR 2007/12 Total
Luxury Cigars 11.2 4.5 24.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Table 41 Sales of Luxury Cigars by Distribution Format: % Analysis 2007-2012
LUXURY GOODS IN RUSSIA
% retail value rsp
Passport 75
2007 2008 2009 2010 2011 2012
Store-Based Retailing 91.0 90.9 90.8 90.7 90.6 90.4
- Grocery Retailers 88.6 88.3 88.1 87.9 87.8 87.5
- Non-Grocery Retailers 2.4 2.6 2.7 2.7 2.8 2.9
Non-Store Retailing 9.0 9.1 9.2 9.3 9.4 9.6
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 42 Forecast Sales of Luxury Cigars: Value 2012-2017
RUB million
2012 2013 2014 2015 2016 2017
Luxury Cigars 814.4 854.2 917.9 977.0 1,015.2 1,060.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
Table 43 Forecast Sales of Luxury Cigars: % Value Growth 2012-2017
% constant value growth
2012-17 CAGR 2012/17 TOTAL
Luxury Cigars 5.4 30.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources
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