Preface
Tobacco, as a special agricultural crop, has been closely related to human life since ancient times. The tobacco industry is not only an important agricultural industry, but also a huge source of tax revenue. According to statistics, the total annual tax payment of Chinese tobacco has exceeded one trillion yuan, accounting for about 6% of the total tax payment of the whole country, which can be said to have made a great contribution to the country.
However, despite the fact that China's tobacco tax is already very large, tobacco companies are losing money year after year. Factors such as high operating costs, non-profit nature, smoking bans in public places, the disappearance of low-priced cigarettes, the rise of e-cigarettes, and increased health awareness are all likely to have an impact on the growth and profitability of the tobacco industry. Next, let's analyze these influencing factors one by one.
High operating costs
First of all, the operating costs of the tobacco industry are very high, which is a big reason why tobacco companies lose money. As a national tobacco monopoly enterprise, the treatment of employees of tobacco companies is very generous, coupled with the particularity of the tobacco industry, the wages and benefits of employees are relatively high, which leads to the labor cost of the tobacco industry is very huge.
In addition, the cost of publicity and promotion, sales channels, brand building and other aspects of the tobacco industry is also very high, which makes the operating costs of the tobacco industry remain high, which brings certain pressure to the company's profitability.
The non-profit nature of tobacco companies
Secondly, the non-profit nature of tobacco companies is also one of the important reasons for their consecutive losses. As a national tobacco monopoly enterprise, the tobacco company is not a profit-making organization in the real sense, although its tax payment is very considerable, but in fact, the profit of the tobacco company is not very high, generally only about 10% of the selling price.
This also means that even if the sales performance of the tobacco company is good, it will not actually bring very considerable profits to the company, which is undoubtedly a very big challenge for a company.
Smoking is prohibited in public areas
In addition to the above two factors, there are a number of other factors that have also had an impact on the development and profitability of the tobacco industry. For example, in recent years, in order to protect public health, the state has implemented strict tobacco control measures in public places, and smoking has begun to be banned in many public places.
This will undoubtedly have a certain impact on the sales performance of the tobacco industry, because the public cannot smoke in public, and the frequency of smoking will naturally be reduced, which is a big impact on the sales performance of the tobacco industry.
The disappearance of low-priced cigarettes
In addition, in order to reduce the harm of second-hand smoke to public health, the country has also begun to phase out low-priced cigarettes, which means that some of the previously cheaper cigarettes may gradually disappear, while some higher-priced tobacco products will gradually become mainstream.
This is undoubtedly a very big impact on some people at the bottom, because their economic strength may not be able to afford those higher-priced tobacco products, which will lead them to reduce the frequency of smoking, which may have a certain impact on the sales performance of the tobacco industry in the long run.
The rise of e-cigarettes
In addition to traditional tobacco products, new tobacco products such as e-cigarettes have also begun to gradually enter the market, and their market performance is very eye-catching, which will undoubtedly have a certain impact on the traditional tobacco industry.
Compared with traditional tobacco products, e-cigarettes have many advantages such as smokeless, tar-free, and second-hand smoke, and their flavors are also very rich, and are deeply loved by some young people.
Rise in health awareness
Finally, with the progress and development of society, people's attention to health is also increasing, more and more people begin to pay attention to quality of life and health problems, and gradually realize how harmful smoking is to their health, therefore, they begin to gradually reduce the frequency of smoking, and even make up their minds to quit smoking.
This will undoubtedly have a certain impact on the development of the tobacco industry, because if more and more people begin to realize the dangers of smoking and make up their minds to quit smoking, then the market demand of the tobacco industry will gradually decrease, which is undoubtedly a very big challenge for tobacco companies.
epilogue
To sum up, there are many reasons for the loss of Chinese tobacco year after year, high operating costs and non-profit nature are undoubtedly important reasons, and factors such as smoking ban in public places, the disappearance of low-priced cigarettes, the rise of e-cigarettes and the improvement of health awareness have also had a certain impact on the development and profitability of the tobacco industry.
In the face of these influencing factors, the tobacco industry may need to make some changes and adjustments, such as accelerating the pace of innovation, launching more tobacco products that meet market demand, strengthening health advocacy, improving product quality, and finding new development models, so as to cope with the current situation and achieve sustainable development of the industry.
At the same time, as the general public, we should also enhance health awareness, be aware of the harm of smoking to health, actively participate in health promotion and disease prevention, and jointly create a healthy living environment.