Magazine: ‘Below in the valley the flowers are resplendent’ – for the time being
After the July peak a slow decline started in tobacco retail, but September data still show better results than many in the sector expected. The seasonal drop forecasted from Trafik.hu partner data was smaller than estimated earlier.
Yes, it is true that this result is only good in the given market conditions. But sales revenue in the peak quarter was probably between HUF 145-148 billion and that may ease the pressure a bit on the industry and on retail. At the end of summer and in early autumn months almost every manufacturer put new products on the market. Despite this move the positions of manufacturers weren’t influenced significantly. By the end of the 3rd quarter Philip Morris had nearly 40 percent of the market; in the same period JTI made modest progress while other manufacturers’ market share either stagnated or contacted in the year’s best period. Smaller players’ performance was saved by their dominance in certain product categories: Continental Dohányipari Zrt. is leader in the cigarillo category and Róna sells the most cigarette tubes. As for tobacco shops, the year’s peak quarter eased things a little for them, but they mustn’t forget that traditionally the 4th quarter of the year is worse than the 2nd and the 3rd. Another question they must answer is which products to take off the shelves after the change in contractual conditions proposed by the market leading manufacturer?
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