Tokyo (SCCIJ) – At the July 2025 Luncheon, more than 50 SCCIJ members and guests gathered at the Shangri-La Tokyo to learn how Philip Morris Japan (PMJ) is playing a pivotal role in one of the most profound corporate transformations of our time: the transition from traditional cigarettes to science-based, smoke-free alternatives.
In a joint presentation led by three senior executives of PMJ – Ms. Cecilia Siu (Director of Communications), Ms. Liz Kim (Director of Marketing), and Ms. Shikha Mahajan (Director of Consumer Experience) – attendees gained a behind-the-scenes look at how innovation, purpose, and strategic vision are redefining not only the company, but also the entire industry.
“Cigarettes belong in museums.” Ms. Siu, what does this statement really mean?
Ms. Siu: That powerful statement by our CEO, Jacek Olczak, captures the heart of our transformation. Philip Morris International is no longer just a tobacco company. We’re reshaping our business entirely, intending to replace cigarettes with scientifically substantiated smoke-free alternatives, as fast as possible. It’s not just a vision; it’s a commitment that’s guiding every decision we make.
How is this change reflected in the company’s global strategy?
Ms. Siu: It’s about transforming everything, not just switching one product for another. We’ve invested over 12.5 billion dollars since 2008, and by Q4 of 2024, nearly 40% of our net revenues already came from smoke-free products. We are now present in over 90 markets with these products. This isn’t a marketing campaign, it’s a company-wide reinvention involving science, technology, and a new way of engaging with society.
Japan is often seen as a unique market. Ms. Kim, what role does PMJ play in this global transformation?
Ms. Kim: Japan is actually the most advanced smoke-free market within our company. IQOS was launched here ten years ago, and since then, PMJ has been driving an innovation at a remarkable pace. In Q1 2025, our Heated Tobacco Units made up 32.2% of the total tobacco market in Japan. We see Japan as a testing ground and an inspiration for our global efforts.
Can you tell us more about the evolution of the IQOS brand in Japan?
Ms. Liz: IQOS has become much more than a product, it’s part of evolution. For the 10th anniversary, we launched the TEREA Limited Edition collaborating with Japanese calligraphy artist Maaya Wakasugi. The edition wasn’t just about aesthetics. It celebrated our customers and encouraged them to keep moving forward, to find joy, to evolve, and to be part of something bigger.
Ms. Mahajan, beyond branding, how is PMJ creating value for its consumers?
Ms. Mahajan: Our focus is on experience. We’ve built a full commercial engine that touches people online and offline: LINE, social media, flagship stores, events in bars and clubs, customer service centers, even smoking rooms. What makes us different is the immersive, emotional connection we create. It’s not just about product features – it’s about surprise, delight, and building trust.
What’s next in this journey of transformation?
Ms. Mahajan: We have a clear vision. By 2030, we aim to have over two-thirds of our revenues coming from smoke-free products. But this isn’t just a target, it’s our responsibility. We believe in change not just because it’s good for business, but because inaction has real-world consequences.
