Smoking's positive social image in Russia holps profits

摘要

International cigarette companies are enjoying a profitable time investing in Russia, which remains a relatively soft touch for tobacco marketers. Smoking is still seen as a badge of class in the country with smoking Soviet-era unfiltered 'papirosi' now seen as the preserve of those on low incomes. Additionally, the country is now the world's third largest cigarette market, with nearly 70% of men and 27% of its women smoking, and low prices are still the norm, despite hikes in excise duties. The habit continues to have little of the social stigma that is now generated in the US and Britain. However, that said, tobacco companies view the Russian market as having cooled off since the first raft of post-Soviet takeovers and investment. "One primary factor is the rapid growth of the Russian economy and raise of standard of living - boosting purchasing power and, consequently, leading to market upgrading," said a spokeswoman for Japan Tobacco International (JTI). "In recent years, the market has been growing both regarding volume and value, mainly in the medium-price and premium segments. Today, volumes are stable but in terms of value, the market continues to grow."