More and more people in Japan are turning to heat-not-burn products over conventional cigarettes.
Philip Morris Japan’s president, Shea Lih Goh, attributes the company’s success in this market with its IQOS device to certain aspects of Japanese culture, saying, “Every market is unique, but what makes this especially true with regards to Japan is that the culture is very concerned about not bothering others, which makes no combustion and similar features (of the products) resonate well with Japanese customers.”
“For over a decade, we have been conducting research and development on reduced-risk products, and our immediate goal is to encourage consumers to convert from cigarettes to our IQOS lineup,” Goh said. “It’s a very exciting time. We are transforming from a traditional tobacco company to one focused on science and technology and realizing a smoke-free vision. This requires a lot of things to change within the company, including how we go about business and how we organize ourselves internally.”
In addition, Goh believes the company’s inclusive working environment and narrowing the gender gap, which distinguishes it from other companies in Japan, also play a pivotal role. Philip Morris Japan’s workforce comprises employees of over 20 nationalities, 40% of which are young, talented millennials, and a gender gap of 0.4%, compared to Japan’s 24.5% gap as of 2017.