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Tommaso Di Giovanni, VP Market Activation & Support, Philip Morris International

The key to a successful business environment is continuous innovation. Believing that outdated business models and processes can be ignored is a recipe for future generations of disruptive companies to steal market share from established brands. For a cautionary tale, one only need look at the demise of the video rental market since the advent of online video streaming services. 1

Of course, many industries go through major changes in their working practices and operations over time to improve the way they introduce and develop new products and services for society. As a result, consumers will start to demand better alternatives to traditional products and services. With greater access to education on social, environmental and health issues, among others, industries evolve; often leading to a switch from old products, like diesel cars and non-renewable energy, to better alternatives such as electric vehicles and sustainable power for their homes and businesses.

Even prior to the COVID-19 pandemic, many companies had notably been moving away from their traditional business models and into new areas of growth and coinciding with advances related to Industry 4.0. This has allowed them to become more strategic and accountable for their actions. Fundamentally, the tobacco industry is no different from other industries in its own sense of welcome transformation. At PMI, our goal is to replace all cigarettes with smoke-free products as soon as possible.

As a 175-year-old institution, undoubtedly, it is as bold a move as any company can make to disrupt its business model and make a core product obsolete. While critics will point out that smoke-free products are more harmful than quitting smoking all together, a point PMI agrees with, smoke-free alternatives have the potential to significantly reduce the average levels of harmful chemicals compared to cigarettes, so represent a better choice for adults compared to continued smoking. This pragmatic approach is being increasingly welcomed not just by adult smokers but an increasing number of general public and health authorities around the world.

Backed by and recognizing the value of science and innovation, public health bodies in the UK and New Zealand actively integrate innovation, science and product related approaches into their strategies. For example, the former Public Health England, an executive agency of the UK’s Department of Health, also ran month-long campaigns called “Stoptober”, which encouraged those who do not quit completely to use potentially less harmful alternatives such as e-cigarettes.

While the industry is in transformation, ultimately innovations that are backed by scientifically substantiated evidence need to be recognized, and adult smokers should be informed so that if they do not quit - which remains the best option for their health - they can choose better alternatives to cigarettes like smoke-free products. As of March 31, 2023, it is estimated there were nearly 25.8 million total IQOS users, PMI’s leading smoke-free product. We further estimate that 18.5 million IQOS users - have switched to IQOS and stopped smoking, with the balance in various stages of conversion.2

However, one of the biggest barriers to achieving a smoke-free future is misinformation. This is especially true when it comes to scientific evidence that shows that smoke-free alternatives are a better alternative than continued smoking. Unfortunately, adult smokers are still left confused by false or misleading information that prevents them from making an informed choice, as the results of a new international survey by Povaddo suggests.

According to the survey, commissioned by PMI, there continues to be a high-level of confusion among adult audiences on this subject. 81 percent of adult participants of the survey in the UAE agree that adult smokers who would otherwise continue smoking cigarettes should have access to, and accurate information about smoke-free alternatives. This is supported by 90 percent of current adult smokers. Furthermore, 96 percent of those who in the UAE have switched to better alternatives and stopped smoking, confirmed that accurate information about how these products differ from cigarettes was an important factor in their decision to switch.

The key takeaway is that accurate information on smoke-free alternatives plays a decisive role in enabling smokers to move away from cigarettes. As a matter of public health, adult smokers also deserve accurate and current information to make their own informed choices.

We applaud the fact that the UAE was the first country in the GCC to regulate smoke-free products, such as heated tobacco products, electronic cigarettes, and devices to be used with them. These smoke-free products were subsequently regulated in Saudi Arabia and Kuwait.

These developments regarding smoke-free products in the GCC countries are encouraging. Our message remains very clear: quitting tobacco and nicotine is the best option for all smokers, and those who don’t smoke or use nicotine products should not start. However, smoke-free products substantiated by robust scientific assessment, while not risk-free, present a much better choice for existing adult smokers than cigarettes.

As with many other industries going through fundamental change, the journey towards a smoke-free future is far from over. But the speed of change is increasing all the time. With wider societal support for smoke-free alternatives, the move away from cigarettes can be achieved faster and to the benefit of adult smokers and wider public health everywhere.

Sponsored by Philip Morris Management Services (Middle East) Limited

1https://www.businessinsider.com/the-rise-and-fall-of-blockbuster-video-streaming-2020-1

2 Source: PMI Financials Q3 2022 Earnings Results: https://www.pmi.com/investor-relations/overview/event-details?EventId=24686

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