'Convenience King' KT&G Electronic Cigarette 'Lil' Also Praised Overseas

PMI and Full-Scale Overseas Sales
Positive Reviews in Russian and Japanese Markets
Efforts for Speed Innovation, Export Expansion

[Asia Economy Reporter Lim Hye-seon] KT&G is solidifying its presence overseas by partnering with Philip Morris International (PMI) to actively promote the overseas sales of its heated tobacco product ‘lil’.

According to KT&G on the 15th, ‘lil’ has received positive feedback from local consumers in the Russian, Ukrainian, and Japanese markets. KT&G plans to gradually expand the countries where it sells its heated tobacco products.

Since its debut in 2017, ‘lil’ has been praised by consumers for its convenience and portability. Sales surpassed 200,000 units within 100 days of launch. In November 2018, KT&G also introduced ‘lil Hybrid,’ its proprietary electronic cigarette platform that combines heated tobacco with liquid cartridges. This significantly reduced the distinctive ‘burnt taste’ of heated tobacco products while enhancing rich and consistent vapor production and ease of device cleaning.

Since his appointment in October 2015, CEO Baek Bok-in has emphasized ‘technology leadership’ by focusing on research and development to strengthen product competitiveness amid rapidly changing market conditions. As a result, R&D expenses increased from approximately 12.6 billion KRW in 2015 to 23 billion KRW in 2019. KT&G filed 961 patent applications last year, more than doubling annually.

These innovation efforts have translated into exports. In January last year, KT&G signed a supply agreement with competitor Philip Morris International (PMI) to enter overseas markets with lil. KT&G supplies lil products to PMI, which sells them worldwide except in Korea.

What caught PMI’s attention was KT&G’s speed and innovation. ‘lil’ was launched later than Philip Morris’s ‘IQOS’ and British American Tobacco’s ‘glo,’ making market entry challenging. KT&G responded with a ‘fast follower’ strategy, releasing seven improved models over three years based on advanced technology (compared to an average of four models by competitors), continuously enhancing portability, convenience, vapor volume, and other features consumers expect from electronic cigarettes.

This content was produced with the assistance of AI translation services.