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PEST Analysis of Huanghelou

Political Factors

China's tobacco system compared to other countries, the biggest feature is the monopoly system.All cigarette production, acquisition, transfer, sale, storage and transportation, price and so on, is by the national unified management.China ratified the world health organization framework convention on tobacco control in 2003, it means that China will gradually fulfill the terms of the Convention.In the future, the development of chinese tobacco will under pressure from the international community.

Economic Factors

With the development economy, the improvement of people's income, expenditure on cigarette consumption also showed an increasing trend. In recent years, the structure of cigarette consumption is increasing, the per capita consumption of cigarettes in China reached 1700 per year, per capita consumption of cigarettes smoking population reached 2000 yuan every year, according to the domestic cigarette consumer grade division, China cigarette consumption level is still dominated by two types of tobacco grade below.

Social Factors

The cigarette as a hobby of consumer goods, has a deep influence on our daily life, regardless of the smokers themselves, or as a gift for friends, we always see the figure of cigarettes.On the other hand, \is harmful to health\has become the common understanding of most people,nowadays the cigarette industry are facing big challenge as people pay more attention to personal health.

Technological Factors

In the past 10 years, science and technology has rapidly developed, China's tobacco industry technology development has also been given more attention, in 2006 the State Tobacco Monopoly Bureau formulated the \of the tobacco industry in the long-term development of science and Technology\determined the tobacco breeding, raw tobacco, cigarette blending process, characteristics, harm reduction of tar, technical equipment, recycling economy, digital tobacco 8 focus areas, made a special key project, our countries has a series of policy to support the new technology the tobacco industry, enterprise technology development and independent innovation and more power.