BAT recently announced the launch of Glo Hyper Pro, the latest heated tobacco device in Japan, Italy and Poland. The latest product features the following improvement: new EasyView™ screen, displaying performance settings and information new HeatBoost™ technology for even better taste satisfaction
Hey Anthony, not sure if you’re aware but you can receive direct messages now. I’ve sent you a direct msg in case you didn’t see yet. Let me know. Thanks
Thank you for explaining how Illuma and Glo differ. I hadn’t realized how Glo’s experience was so far behind — Who wants to clean a device every 20 utilizations?
I know you don’t cover JT, but do you know how Ploom compares to Illuma?
You make a good point about HNB requiring constant R&D compared to cigarettes which change very little over time. I’m wondering if there’ll be a time where the devices and consumables are so good there won’t be as much of a need to improve them. Do customers still have pain points with Illuma?
Btw, I discovered your newsletter thanks to Devin Lasarre. I’m happy that I did and I look forward to your next articles!
Hi Tian Wen, based on what I have read so far, at least in Japan market, Ploom is a cheaper option for first time user of HNB. Value proposition could be different elsewhere and you may want to look at the cooperation between JT and Altria for launch of Ploom in the U.S. It is worth noting that JT is committing JPY300bn for development of HNB so the current iteration of product may be very different from what you see in a year’s time. So far the market share data has not supported any claim that Ploom is competitive against Iqos or even Glo.
It is a billion dollar question to figure out how product upgrade cycle may evolve over time. I am not sure if it is a perfect analogy, but iPhone hasn’t always been the most technologically advanced smartphone since its birth. It has never failed to be the #1 aspirational brand that commands the highest margin regardless. Same goes for Tesla, as you may find out some cheaper Chinese EVs are actually having better specs than Tesla or even after sales services. But that doesn’t quite change the fact that Tesla commands the highest margin in the industry while almost everybody else has poor profitability. PM CEO once said that “using IQOS tells people around you who you are” (I forgot the exact wording but you may find that from Capital Market event or earnings transcript when he was asked by an analyst a similar question.) If what he said is true, then PM is in an advantageous position to focus innovation on areas with high conviction of winning new customers and retaining existing customers.
Hey Anthony, not sure if you’re aware but you can receive direct messages now. I’ve sent you a direct msg in case you didn’t see yet. Let me know. Thanks
Thank you for explaining how Illuma and Glo differ. I hadn’t realized how Glo’s experience was so far behind — Who wants to clean a device every 20 utilizations?
I know you don’t cover JT, but do you know how Ploom compares to Illuma?
You make a good point about HNB requiring constant R&D compared to cigarettes which change very little over time. I’m wondering if there’ll be a time where the devices and consumables are so good there won’t be as much of a need to improve them. Do customers still have pain points with Illuma?
Btw, I discovered your newsletter thanks to Devin Lasarre. I’m happy that I did and I look forward to your next articles!
Hi Tian Wen, based on what I have read so far, at least in Japan market, Ploom is a cheaper option for first time user of HNB. Value proposition could be different elsewhere and you may want to look at the cooperation between JT and Altria for launch of Ploom in the U.S. It is worth noting that JT is committing JPY300bn for development of HNB so the current iteration of product may be very different from what you see in a year’s time. So far the market share data has not supported any claim that Ploom is competitive against Iqos or even Glo.
It is a billion dollar question to figure out how product upgrade cycle may evolve over time. I am not sure if it is a perfect analogy, but iPhone hasn’t always been the most technologically advanced smartphone since its birth. It has never failed to be the #1 aspirational brand that commands the highest margin regardless. Same goes for Tesla, as you may find out some cheaper Chinese EVs are actually having better specs than Tesla or even after sales services. But that doesn’t quite change the fact that Tesla commands the highest margin in the industry while almost everybody else has poor profitability. PM CEO once said that “using IQOS tells people around you who you are” (I forgot the exact wording but you may find that from Capital Market event or earnings transcript when he was asked by an analyst a similar question.) If what he said is true, then PM is in an advantageous position to focus innovation on areas with high conviction of winning new customers and retaining existing customers.