Sunday, March 15, 2009

Хөрш гурван орон дахь тамхины сурталчилгааны талаарх судалгаа

Энэ удаа "Олон улсын зар сурталчилгаа" хичээл дээр хийсэн Монгол, Орос, Хятад гурван хөрш орны тамхины үйлдвэрлэл, борлуулалттай холбоотой нэгэн судалгааг танилцуулъя.

Tobacco industry and ads regulation in three neighboring countries: Mongolia, China, and Russia

The economic relationship of three neighboring countries: Mongolia, China and Russia play a vital role in Asia. Although Russia is belonged to Europe, the most of its territory is in Asia. Historically, those countries have long term trade relationship, particularly in tobacco importing and exporting. “Asia consumes half of the world’s tobacco. However, cigarette sales revenue is relatively low, since most cigarettes sold in Asia are inexpensive products”, reported the Financial Times in October 6, 2000.
With 350 million smokers, China is the world’s largest tobacco market. Few countries have attracted so much tobacco investment in such a short time as Russia has. The Russian cigarettes market is the largest in Europe and fourth largest in the world. Unlike the situation in most other markets, consumption in Russia is still growing, by 1.5 to 3 per cent per year. There are between 35 million and 40 million smokers in Russia, and no restrictions on tobacco consumption. However, Mongolia is a consumer of tobacco products not a producer.

Tobacco industry

No tobacco is grown in Mongolia. Mongolia imports tobacco from Russian Federation, Bulgaria, and China. A small quantity of cigarettes is imported from the U.S.A. Dry snuff tobacco is imported from China. In total, 620 million cigarettes which are 0.2 percent of global imports are imported annually. Because all tobacco and tobacco products are imported into Mongolia, employment generated by the tobacco industry is minimal. Utilizing available data, it was estimated that from 1980 to 1989, annual per capita consumption remained stable at around 560 cigarettes per adult aged 15 and above.
The state-owned China Tobacco Corporation, the largest tobacco producer in the world, currently dominates in the Chihese market. The corporation’s market value is estimated at 24.5 billion dollars and it posted 11 billion in sales revenue in 1999. Cigarettes made by China Tobacco Corporation account for 92 percent of China’s consumption, a full one third of the global total. In the first half of 2000, Chinese companies produced 16.4 million cartons of cigarettes. This was 462,000 cartons more than in the same period of previous year and constituted 2.9 percent increase. China is interested in U.S grown tobacco.
Approximately, 320 thousand million cigarettes are manufactured or imported into in Russia every year. Cigarette production and imports increased by 40% 215 thousand million in 1986. There are several reasons which have been assiociated with this dramatic increase:
· Tobacco rationing in early 1990-s
· Psychological distress on the Russian people
· Attraction of the Western style
· Lack of legislation regulating tobacco advertisng
· Easy access to cheap, low quality tobacco products
· Lack of financial resources in rublic health sector
· Absence on effective system for quality control of tobacco
There were 26 factories factories in 1995 making 140 thousand million a uniquely Russian smoking product. Now the Russian Finance Ministry registered 86 factories. Of those, around 60 are sizable plants, and 30 major factories make the best-selling brands. Twenty factories are associated to Tabakprom, the largest tobacco company in Russian, and ten factories are joint-ventures with foreign companies. Around 95 percent of all legel cigarattes sold in Russia were made locally in 2000. Today, Russia is importing about 150 thousand million cigarettes. The sales of American made cigarettes increased in volume by 36% and in price 57%. So far, a total of 2 billion dollars were invested in the Russian tobacco industry since 1990 and 75 percent of the money came from foreign companies.

Tobacco related issues

Tobacco’s only apparent economic attractiveness for Mongolia lies in its excise-generating ability for government. A very high percentage of the cost of cigarettes goes toward government revenue. Tobacco taxes now constitute 84-95% of the cost of cigarettes. Previously, tobacco had only been taxed for fiscal and not for health reasons.
Tobacco is a major source of revenue for the Russian government as well. Cigarette tax revenue is equivalent to 8 per cent of the government budget. In 1999, Russia’s tobacco tax collections totaled 6 billion rubles, up from 4 billion rubles in 1998. However, Russia’s tobacco taxes are among the world’s lowest, representing only 5 to 7 percent. In addition, tobacco industry gives direct employment to thousands of workers in both countries Russia and China.

Tobacco taxes in some countries
Country Percentage of retail price
Mongolia 87.5
Great Britain 79.6
Germany 73.0
Japan 63.0
United States 39.5
China 38.0
Russia 3.3

According to the 1991 survey, conducted around 9,000 persons of Mongolia, about 40% of adult males and 7% of adult females smoked. The age distribution of smokers was:
· 2.8% were below 18 years,
· 37.5% between 19-29,
· 30.2% between 30-40,
· 19.9% between 41-50, and
· 9.5% aged 51 and over.
In Russia, about two-thirds of men and one third of women smoke. Smoking rates among adolescents are increasing, especially among girls. Russian youth is especially attracted to images of old American movies, and TV programs and they perceive smoking as “fashionable”, or “high class”.

Smoking habit
In Mongolia, 19% smoked non-filter cigarettes; 14,7% smoked hand-rolled cigarettes (mostly workers), and 24.6%, including pipe tobacco (mainly farmers) and role-your-owns (15%). Nasal shuff was used primarily by elderly males and chewing tobacco was consumed only in the western region of the country in 1991. Smokers smoked on average 11 cigarettes per day.
According to the Journal of American Medical Association, more than 300 million men and 20 million women smoke in China. Only 6% of women currently smoke. The perception ofcigarettes as both fashionable and weight-control aid, could lead to an explosion of smoking rates among women. While in the most countries, smokers tend to stay loyal to one brand, Russian smokers often try a whole array of cigarettes before setting on one brand.

Tobacco related illnesses
Between 25% and 30% of heart diseases and cancers are caused by smoking in Russia. Tobacco causes 32% of all male deaths and 5% of all female deaths.
An official study conducted 48 major cities found that more than 82 percent of consumers know that smoking hams health. But one third of Chinese people did not know what are particular dangers caused by smoking. General Zhang Chaoyang, secretary of China Consumers Association announced on March 15, 2001 at the press conference, “Despite fancy tobacco advertisements and promotional campaigns, more and more Chinese consumers have realized that few puffs on cigarettes every day may take a huge toll on their health and set about ti change the unhealthy habit.”

Smuggling exists in all of the three countries. Widespread smuggling exists in Mongolia. In result of establishment open trade with China since 1990, the Mongolian people have experimented many counterfeit goods including tobacco. Independent retailers of small companies import fake cigarettes from China.
This problem is transcended to other countries rather than these three neighboring countries. The U.K. government employed more custom officials, put large container scanners and added stiffer sentences in order to investigate tobacco smuggling. Investigators found packets shipped to Britain from China. Criminal gangs are forging bixes in the colors of established brands such as Marlboro and filling them with cheaper cigarettes. Chihese authorities broke up 2,427 underground cigarette factories in 1999. This year 60 million cartons of illegal cigarettes valued at 700 million yaun ($84 million) were confiscated. Alomost 300 illegal cigarette markets throughout the country have been shut down.
Because of the lack of quality control over tobacco products and unprecedented smuggling, Russia was flooded with cheap cigarettes of dubious quality, with small or no health warnings at all. Contraband and counterfeit goods make up around 4 to 5 percent of the total market.
On the streets, elderly people mostly women sell packs of cigarettes to anyone with the cash no matter how young.

Tobacco regulation and advertising
Ary Assuma, a coordinator of several major health campaigns in Malaysia pointed out at the symposium on tobacco control in Geneva IN 1999 that Thailand and Mongolia have comprehensive tobacco-control programs in contrast to other Asian countries. The Ministry Health and Social Services first addressed tobacco control in 1984 with directives concerning smoke-free premises. Since 1988, there has been a ban on cigarette sales to children under the age of 16. In 1990 and 1991, the Ministry Health invited a WHO Consultant to advise on national tobacco control policy and legislation. In March 1994, comperensive legislation came into affect. However, implementation and endorcement of the law are proving to be problematic.
Since 1994 health warnings are required on cigarette packets (6 warnings have been to introduced), and tar and nicotine upper limits have been regulated. There are bans on direct advertising and sponsorship. Despite this ban, RJR promoted the Camel Trophy’ 97 jeep adventure tour in Mongolia. Radio, television, cinema and print media have been used to broadcast anti-smoking messages. Many of the health messages are on the economic impact of smoking (including reduced productivity), as well as on the risk of fores. Sports personalities are shown to emphasize a positive, healthy lifestyle. The Methodological Center on Anti-Alcoholic and Anti-Smoking Activities runs smoking cessation classes and established a Quitters Club in 1987. Implementation and endorcement of legislated tobacco control measures is not always possible.
Smoking was first prohibited on public transport and in health facilities, as well as many other worksites, including electricity stations, Army clinics, and at the Institute of Agriculture. That ban has been extended to prohibit in many public places, transport vehicles, offices, and schools.
The State Council is requiring of “reducing the nation’s tobacco stocks by 20 million dan (100 million kg/220 million lbs.) within three years starting from 2000. The government also plans to help big and meium-sized companies in the tobacco industry to reduce their total losses to around 15%, so the industry as a whole can stop incurring losses. To do this, the government aims to reduce its tobacco inventories to 1 million tons within three years.
As Jara Parker-Pope, state owned monopolies don’t have a need to advertise because they are the only game in the area. The Beijing Government jealiously guards its monopoly, relying on cigarette sales for 12 percent of its annual revenue (p.48). here are more than 900 brands. And some joint ventures and licencing agreements with Western companies are sponsoring countless radio shows and sporting events. Brand namews like Marlboro and Salem are on the café umbrellas.
The State Administration for Entry-Exit Inspection and Quarantine is responsible for testing and certification of tobacco goods along with other products. Pricing departments across the country will carry out eight price-relted inspections in areas including electricity, public security, tourism, housing and real state management, car purchases, education, agriculture, garin, and tobacco.
According to the Times of India, “Though tobacco advertising in developing countries is at present directed towards the general public, attempts are being made in China, Sri Lanka and the Philippines to target women (January 10, 2000)”.
The country did not have reliable, independent control of tobacco products before. Currently there are three laboratories that provide such control: the Laboratory of the Russian Research Institute of Tobacco and Makhorka in the city of Krasnodar; the Laboratory of the Oncological Research Center in Moscow; and the Laboratory for Tobacco Quality Control in Moscow. Russian market is improving value of cigarettes and making them cheaper while lowering tar and nicotine. Currently, only 49 percent of Russia’s tobacco factories have technical ability to meet requirement for nicotine limits.
Increased number of tobacco led to the massive amounts of tobacco advertising. American tobacco companies heavily advertise in Russia using American symbols such as billboards with the Marlboro Man.
Anti-tobacco video on TV during the daytime when most people are at work or at school. In contrast, a tobacco company has recently provided the bulk of 150,000 dollars spent on just one advertising festival in Moscow.
Adevertisement on local products appeals to Russian patriotism. Its pack depicts the battle at Sevastoplo and Borodino-glorious pages in Russian history. The motto is no less patriotic: “Changing the aims, we remain faithful to her.”
Irina Kazovskaya, PR representative of Eurotabak said “With advertisements you can persuade people to smoke even not-so-good cigarettes”(July, 2000). Indeed no product is so fiercely advertised in Moscow as cigarettes. Huge posters and billboards appeal to experimenting Russian smoker: “The night is yours-turn up the fire,” whispers Pall Mall; “Bet on the winner.” Boldly advises West1; “Is really possible to refuse yourself?”, tempts a Winston.
According to the Article 16 of the Advertising law, there are some limits on tobacco advertisement. It says, advertisements for alcoholic drinks, tobacco and tobacco products disseminated by any method must not:
· Be disseminated on radio or television prorams between 7 a.m. and 10 p.m. local time;
· Be disseminated in any form on radio or television programs, cinema or video services or printed publications for minors;
· Be disseminated on the first or last pages or a newspaper or on the first or last pages of covers or a magazine;
· Be disseminated at children’s, scholastic, medical, sporting or cultural organizations, or within 100 meters of them.

In addition, the law prohibits to demonstrate process of smoking and to use image of popular among youth person in ads. As law says all tobacco products must be accompanied by warning on dangers of smoking.

Tobacco brings much money to the government budget in three neighboring countries in Mongolia, China and Russia. Mongolia has more restrictive regulation banning all kinds of tobacco advertising. In contrast, China has almost no banning on tobacco advertisement because the largest tobacco corporation is owned by the State. Russia’s advertising law is weak. It aims mostly on children. In reality, the most ads are targeted to women. Cigarette companies have portryed smoking as a “torch of freedom”, “a tool of beauty” and a sign of progress.
In general, Russia is becoming increasingly lucrative market for cigarette manufacturers from Western Europe and the United States. Newly built cigarette factories in Russia are results of the tobacco industry’s response to legal setbacks in the West. Those factories have been touted as an economic benefit, not a risk to that nation’s health.
China is succeeding in increasing both its production and sales of tobacco, while also decreasing its stocks of its product.
The marketing and advertising pressure from the tobacco companies that the U.S. experienced in the 40’s, 50’s and 60’s is now happenning in the developing countries. China and Thailand had taken steps to raise cigarette taxes.
Lured by financial gains, the tobacco industries is growing in both countries: Russia and China. Those countries’ policies will not be as effective unless transnational tobacco firms are made to limit their aggressive advertisements.
As long as cigarette makers produce cigarettes, they will sell them, consumers will buy them, and people continue to smoke. And if people keep smoking, the cigarette makers will continue to make money. It is paradox that their governments encourage their production and at the same time they want to regulate everything: production, price, sales and advertising. If the governments have interest to gain money for the budget as taxes from cigarattes, this circle will continue.

Albarran, A. & Chan-Olmsted, S (1998). Global Media Economics. Iowa University Press.
Parker-Pope, J. (2001). Cigarettes. The New Press.
2001 оны 5 дугаар сарын 9

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