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germoney2

08/11/11 3:28 PM

#3013 RE: vanyak #3012

that´s exactly what I think.
The game is to get as many licenses and distribution agreements as possible in a short time frame. In China you have many regions with protected local tobacco companies and it would be much more expensive for CKGT to team up with every local player separately. This way it may leverage much more if it is a success. And if i remeber it correctly, an international expansion was part of the agreement with the Shandong cigarete factory to make it attractive for them to enter new markets with an innovative product. That was, why small CKGT got the big cig-company to team up.