The JT Group earns around 40% of its operating profits in the Japanese domestic tobacco market. JT products account for approximately 60% of the Japanese ready-made cigarettes market. We have achieved this through the strength of our product brands - our greatest assets - and our world-class technological know-how. We use the latest innovation to develop, manufacture and market our tobacco products. We are also focusing on expanding Ploom TECH, which is a Tobacco-Infused Vapor product with low-temperature heating technology unique to JT. With such a major competitive advantage, the domestic tobacco business will continue to play its role as the JT Group's platform of profitability.
Leading the market through a strong brand portfolio
The Japanese domestic tobacco business is an important market in which the JT Group earns around 40% of its operating profits and has secured around 60% market share in the ready-made cigarettes business. We have achieved this on the strength of our brands - our most valuable assets.
Among our key brands, Mevius, which is Japan's No.1 brand,* has a strong presence in Japan and many other countries in Asia and remains popular following the name change from Mild Seven in 2013. We have also achieved robust sales of Natural American Spirit, another key brand that joined the JT Group portfolio in 2016. We will continue to maintain our market superiority and further generate profit through our competitive brands.
*Source: TIOJ and JT
Supporting our trade partners to help them meet consumers' needs
We are helping to maximize the potential of stores to enhance customer satisfaction by offering a wide selection of products according to customer demands as well as the market dynamics of individual sales areas and retail channels. Our trade marketers work with retail stores across Japan, providing marketing support according to the characteristics of each store. This includes providing advice on range and store layout to help consumers easily find and buy the brands they want. Our support for our trade partners demonstrates our commitment to achieving a high level of consumer satisfaction.
Delivering quality goods to consumers
We are constantly improving the quality of our products. In order to ensure a stable supply of quality tobacco leaf, the principle raw material for our products, we provide support to tobacco farmers to help them improve their productivity. We also focus on building an optimal manufacturing system to ensure an efficient and timely supply of quality products to the market. We will continue to strive for quality improvement throughout the process from procurement to manufacturing and marketing, so as to deliver quality and reliable products that meet consumer demand.
Creating new value through R&D
Through our global R&D network, we develop products for consumers worldwide through research and technological development carried out in Japan. Our R&D activity is focused on speed and flexible collaboration with other teams in the business, making use of the diverse expertise and individuality of each one of our employees. We are constantly challenging ourselves to create new value to meet the varied and evolving demands of our consumers.
Nurturing understanding and respect between smokers and non-smokers
Toward the goal of creating a society where smokers and non-smokers can coexist in harmony, in Japan, JT has been carrying out various activities, such as calling for better smoking manners and promoting separation between smoking and non-smoking areas. In addition, we are committed to developing new forms of tobacco products that are products with the potential to reduce impact of smoking to others, which should contribute to create a comfortable society for both smokers and non-smokers.
Promoting better smoking etiquette
Awareness-raising activities aimed at better smoking manners.
Prevention of smoking by minors
JT is further strengthening collaborations with related organizations to tackle the issue of underage smoking.
Promoting smoking area separation
JT consults on and promotes separation between smoking and non-smoking areas.
Developing new forms of tobacco products
New forms of tobacco products do not involve combustion. As such, the products do not produce tobacco smoke and tobacco smell.
Ploom TECH, Tobacco Vapor product with a new concept
We expect Ploom TECH, launched in Japan 2016, should contribute to create a comfortable society for both smokers and non-smokers because of its features with no smoke smell or ash and no negative impact on surrounding air quality.