Our recent trip to Tokyo brought us to Together X, a stunning event celebrating IQOS’s 10-year journey as a smoke-free alternative. Hosted by Philip Morris International (PMI), this event celebrated IQOS’s impact on modern lifestyles. We had the privilege of speaking with Mr. Tommaso Di Giovanni, PMI’s VP of International Communications, about IQOS’s evolution over the past decade.
- Over the past decade, IQOS has grown to be more than just a product; it has influenced culture and lifestyle. How do you see IQOS shaping social norms and cultural attitudes, especially here in Tokyo where it all began?**
Mr. Di Giovanni:
“Well, you’re right, it began in Tokyo 10 years ago, and I had the honor to actually be here exactly when we test-marketed, when we launched. And in 10 years IQOS has changed the world of tobacco and nicotine, it actually managed to overcome Marlboro, in terms of revenues for us, which is outstanding because if you think of an iconic brand, well, that was Marlboro.
And now we have another icon that’s called IQOS. It’s completely changing the way people think about nicotine and tobacco, and I think it’s also changing the way to think in general about the experience because IQOS has amazing technology. It has very innovative solutions to control the temperature, to give an experience that’s as close as possible to cigarettes, and I think this is why it’s been adopted by over 30 million consumers worldwide, and 72% of them, almost 3 quarters basically, have abandoned cigarettes, which is exactly what we wanted.”
2. The theme of Together X celebrates the fusion of music, art, and technology. How do you think IQOS integrates into modern lifestyles, and what role does innovation play in making it a product that connects with diverse consumers?
Mr. Di Giovanni:
“There are two elements here: modern lifestyle is shaped by innovation more, and innovation has always been with humankind. In the last decade, that connection between us and innovation has accelerated, and you see it in all fields. I think we probably can be proud that IQOS innovated ahead of a cycle in other sectors.
Obviously, for IQOS, innovation is at the core, and you see it from the technology, the fact that, for instance, it can control the temperatures very precisely. But innovation doesn’t stop there. I mean, we had eight, nine different versions of IQOS to improve constantly against pain points of the consumers. And this is exactly what’s happening. We’re innovating every time.
We have 1,500 scientists and engineers working mostly on those products at the moment. There’s a lot of research, technology development, and a network of partners in R&D. Many of them are startups. And clearly, the product will continue to improve.”
3. PMI has been vocal about its commitment to a smoke-free future. How does the IQOS product and this event reflect that vision, and what steps is PMI taking to engage adult smokers in making that transition?
Mr. Di Giovanni:
“IQOS was for us, the first step towards a smoke-free future. Actually, we launched IQOS before announcing our vision of a smoke-free future. It was an attempt to come up with something that smokers would have liked so that it could replace cigarettes.
And it’s after two years of IQOS that we realized we made it. We had found a product that smokers like and adopted. And Japan is exactly where that all started.
Our CEO then went public and announced that we wanted to replace all cigarettes with smoke-free products as soon as possible. And since then, I have to say, the progress has been amazing. Right now, almost 40% of our revenues come from smoke-free products. A big chunk, it’s obviously IQOS.
Our portfolio of products has expanded significantly. Not only do we have several versions of IQOS on the market, but we have other products like e-cigarette in the form of VEEV or others.”
4. As heated tobacco becomes more common, how do you think it has changed the way people interact socially? Have you observed any shifts in social dynamics or etiquette due to IQOS?**
Mr. Di Giovanni:
“Yes, significantly. And actually, there are places like Tokyo, , where over 50% of tobacco consumption is represented by heated tobacco products. And places like Vilnius, in Lithuania, where you have more or less the same. In those places, you really see a change.
People have an IQOS on the table. There’s no smoke.. In many countries, you would have noticed that very often, you have IQOS-friendly established locations which allows social interactions and a sense of belonging. Clearly there is a change in perception and mentality towards IQOS and smoke-free products in general.”
5. IQOS is often seen as a sleek and stylish alternative to smoking. Can you tell us more about how the design philosophy behind the different IQOS models has evolved to fit into a more sophisticated, premium lifestyle?**
Mr. Di Giovanni:
“It’s intentional because if you want to move smokers out of cigarettes, you need to give them something that compensates for the loss of simplicity that cigarettes have. Cigarettes are very easy to use. So, IQOS needs to be appealing to them to encourage them to switch.
And that’s why we spent significant efforts to make sure that the design of IQOS is appealing. It’s sleek, it’s innovative, it’s solid. At the same time, when we designed it, we paid particular attention to making sure that the design isn’t appealing to minors.”
6. Sustainability is an important consideration for many global brands today. What steps is PMI taking to ensure that IQOS production is sustainable, and how does this align with your long-term goals?
Mr. Di Giovanni:
“For us, sustainability is at the core of everything we do. We build these products with bioplastic, we have systems to recycle the majority of the electronics, and our factories are moving towards net zero emissions. We even worked with famous designers to make products like the Steve Aoki jacket from recycled materials. For us, it’s almost a concept embedded in the brand.”
7. IQOS has now been part of the market for a decade. Looking back, what do you believe is the most significant achievement or milestone that has defined this journey?
Mr. Di Giovanni:
“I certainly think the launch in Nagoya years ago was an important milestone, but then I would also say the launch of the new IQOS is an achievement because we addressed a number of pain points, and we see the consumer response is just amazing, which probably projects us to even further growth and further replacement of cigarettes.”
