Edit: Zebra Jun
water accounts for about 70 percent of body composition in newborns, this proportion is as high as 80% -90%. Once the human body leaves the water, the food cannot be digested, the nutrients cannot be transported, the waste cannot be excreted, and the body temperature cannot be adjusted. All the metabolism of the human body will be disordered. Human life is inseparable from water at a moment, so water is also called "the source of life".
However. The daily water intake of the human body is affected by factors such as climate and exercise. Scientists suggest that adults should drink more than 2500ml per day, which is equivalent to drinking at least 5 bottles of 500ml mineral water per day. The key effect of water on the human body makes the water market an absolutely rigid, high-frequency consumer market.
According to Euromonitor International’s statistics, my country’s bottled water industry regulations in 2018The model exceeds 180 billion yuan, a year-on-year increase of 9.5%, and the compound annual growth rate in the past five years is 11.5%. However, a horizontal comparison shows that the per capita consumption of bottled water in my country is still far below the world average level, and there is a large room for improvement in both the sales volume and unit price of bottled water in the future. Euromonitor predicts that industry sales are expected to maintain a 7%-9% growth in the next five years, and sales growth will remain at around 6%-7%.
This article will focus on How has the Chinese bottled water market gone?
"China's first water"-Laoshan mineral water
China's bottled water market began In 1930.
In 1900, a German businessman accidentally discovered a water well in Laoshan, Qingdao. German scientists at the local hospitalThe water quality has been tested to confirm that its water quality has high health and medical value, and can effectively treat a variety of diseases including hypertension, gastrointestinal disease, rheumatism, etc. After the patient’s taste, most of the conditions have improved. The event was published in newspapers, and Laoshan mineral water became an instant hit.
In 1930, the water well was sold to Germany's most beautiful time foreign company. The foreign company adopted the glass bottle packaging technology imported from Germany at that time, which gave birth to China's first bottled mineral water. At that time, the "Laoshan" series of drinks were exported in batches and sold at home and abroad. In 1949, after the founding of New China, the "Laoshan" series of beverages became water for state banquets, and it has long maintained the top export volume in the country, becoming the well-deserved "China's first water".
The founder of China's pure water-Cestbon pure water
Although Laoshan mineral water originated earlier, its production capacity was small at that time, and most of its products were mainly exported. Since the founding of the People’s Republic of China, the country’s industrial policy focusing on heavy industry has prevented China’s bottled water market, represented by Laoshan mineral water, from forming a climate. It was not until 1982, the fourth year of reform and opening up, that the country listed beverages as planned products and bottled water. Ranked among them, this indicates that the development of China’s bottled water industry has officially entered the initial stage.
The predecessor of C'estbon is China Longhuan Beverage (Shekou) Co., Ltd., a beverage company established in Shekou, Shenzhen in 1985 that mainly produces and sells carbonated beverages. On November 19, 1984, Guiyang Prickly Pear Product Development Company, attracted by the development opportunities in Shenzhen, came to Shenzhen Shekou Industrial Zone, and wanted to promote the "Prickly Pear Juice", a beverage unique to Guizhou, to the whole country through Shenzhen. The predecessor of C'estbon-China Longhuan Co., Ltd.
Shortly thereafter, the domestic beverage market was in depression due to inflation. Coupled with the strong intrusion of foreign brands such as Coca-Cola and Pepsi, Longhuan Beverage, whose main business is carbonated beverages, has encountered the biggest trouble since starting a business. Small businesses are forced to survive in the cracks and have to find other ways to develop. Fortunately, Longhuan Beverage has found its own opportunity. Occasionally, Longhuan Company discovered purified water, a "new beverage" in the Hong Kong market,Favored by Hong Kong consumers, but this type of beverage is not available in China. Longhuan decided to seize the opportunity. Therefore, in 1989, it was the first to launch a new type of beverage-Cestbon purified water in China, creating a precedent for pure water in China.
"Water Aristocrat" created by "Father of Packaging Water"——Jingtian Baisui Mountain
In 1992, the former General Manager Zhou of CestbonJingliang set up his own business. At the age of 39, he founded Shenzhen Jingtian Industrial Co., Ltd. to produce and sell purified water. Zhou Jingliang was dubbed the title of "Father of Packaging Water" by industry insiders because he successively created two brands of "Cestbon" and "Baisuishan".
More than 9 years of experience in the position of general manager of Cestbon has made Zhou Jingliang understand the corporate management and brand operation of a beverage company. As soon as Jingtian Company was established, it formulated clear strategic goals, skilled market play, formed the advantage of accumulating and developing, and achieved high growth for 9 consecutive years.
In 2001, when pure water sales reached a peak, Zhou Jingliang noticed that the mineral water market was expanding rapidly. But the best thing, the market share is often not the largest. At that time, there were not many companies involved in the field of mineral water. In order to open up this market, Jingtian began to search for high-quality water sources and launched Jingtian Baisuishan mineral water in 2004.
Since Baisui Mountain was launched, relying on the precise card position and outstanding cost performance of the product, as well as the successful marketing of Suishan grows rapidly with an increase of 30% to 40% every year. Since 2009, "Baisui Mountain Natural Mineral Water" has been ranked first in the domestic natural mineral water market for 9 consecutive years. And the export volume continues to rank first in the drinking water industry. In 2018, the share of Baisuishan mineral water in the bottled water marketThe amount has reached 10.1%, ranking third in the industry.
He created China’s first richest man from a water seller-Wahaha purified water
April 1987, 42 years old Zong Qinghou contracted the distribution department of a school-run enterprise in Shangcheng District, Hangzhou, and started his business by selling soft drinks, popsicles and stationery paper. In July of the same year, Zong Qinghou used the pollen sales payment and a bank loan of 50,000 yuan as original funds to build Hangzhou Baoling Children's Nutritional Food Factory, processing pollen for Hangzhou Baoling Company, and started Wahaha's entrepreneurial journey. Relying on agency sales and processing, Zong Qinghou won the first pot of gold in his life.
In 1995, Wahaha tried to make water and simultaneously launched mineral water and pure water The ex-factory price of water is 1.7~1.8 yuan/bottle, and the terminal price is 2.5~3 yuan. The sales volume is not good. In March 1996, Zong Qinghou reduced the ex-factory price to 1.35 yuan/bottle. In this way, every bottle of water The retail price is controlled within 2 yuan. In 1996, Wahaha purified water sales reached 100 million yuan, ranking first in the bottled water market. In 1997, pure water sales reached 300 to 500 million yuan. Later, it grew to 1 billion yuan. . In 2000, the market share reached 2 billion yuan.
In 2012, Wahaha Group’s revenue reached 63.6 billion yuan, making Zong QingAfter that, he became the richest man in Mainland China for the first time, and again in 2013 he became the richest man again. Zong Qinghou was also the first richest man born in China's water sellers.
The low-key latecomer-Nongfu Spring
In 1991, when Wahaha was already under the leadership of Zong Qinghou After the distribution department of a school-run enterprise in Hangzhou developed into a large enterprise with an output value of more than 100 million yuan, Zong Qinghou also "small fish eat big fish", merged with Hangzhou Canned Food Factory, and established Hangzhou Wahaha Group. Sui Sui was still the general agent of Wahaha Oral Liquid in Hainan and Guangxi provinces.
The Wahaha oral liquid at that time was an absolute fast-moving consumer product. Zhong Suansui's ability to win the provinces of Hainan and Guangxi cannot be underestimated. Unfortunately, because Hainan was a newly developed special economic zone at that time, WahahaThe agency price is lower; while the main sales area of Wahaha oral liquid is in Guangdong. Therefore, Zhong Suansui took advantage of this loophole and sold the Wahaha oral liquid that he got in Hainan at a low price to Zhanjiang City in Guangdong Province for a high price difference. After Zong Qinghou knew about the incident, Zhong Sui Sui was forced to remove the title of Wahaha Provincial Deputy. However, at that time, he saw the high profits in the beverage industry, "Sooner or later, I will come back again", he threw a harsh sentence.
In 1996, Zhong Suihui returned to Hangzhou to establish Zhejiang Qiandaohu Yangshengtang Drinking Water Co., Ltd. (the predecessor of Nongfu Spring). At that time, Nongfu Spring faced the eyes of bottled water giants such as Wahaha and Master Kong. The ambush. Zhong Suansui did not face the competition with these giants, but cleverly opened up the "natural water" market segment. Moreover, on the price side, Nongfu Spring was positioned in the mid-to-high-end market from the beginning, and avoided the relatively low-end route of Wahaha and Master Kong.Face the competition. In terms of marketing, in 1998, Nongfu Spring made the advertising slogan “Nongfu Spring is a bit sweet” through large-scale and high-density TV commercials, and 550ml sportswear Nongfu Spring quickly spread across the country.
On April 22, 2000, the production of purified water was stopped and only natural water was used. At present, Nongfu Spring's leading position is firmly established, ranking first in market share in the bottled water industry for many years.
The big brother who was forced to make a facelift-Master Kong Mineral Water
This food and beverage giant from across the Strait not only produces water And the most famous one is Master Kong's braised beef noodles.
In 2004, Master Kong's mineral water was listed. For more than ten years, Master Kong has occupied a leading market position in the bottled water industry, especially bottled water with a price of 1 yuan. In 2007, Master Kong Mineral Water surpassed Wahaha for the first time, successfully occupying the market position of bottled water with a market share of 17.3%.
However, in the new era of consumption upgrades, 2 yuan bottled water has gradually become the mainstream of consumption, standing at the turning point of the times, the growth of Master Kong bottled water has gradually weakened. Master Kong's advantage in this market competition is not obvious. In 2015, Master Kong Mineral Water officially changed its packaging, changed its name to Youyue, and set pricingAt around 2.5 yuan, enter the middle and high-end water market. At present, the two major brands of "Master Kong" and "Youyue" have "parted ways" and have begun to sell them simultaneously in different packaging forms on the market.
It is an indisputable fact that Master Kong's market share in bottled water has declined. In 2011, Nongfu Spring’s market share surpassed Master Kong's market share for the first time and took the lead in bottled water, and Master Kong ranked second in the industry. According to the latest statistics, Master Kong’s 9.9% Of the market share falls behind Baisui Mountain’s 10.1%, ranking 4th in China’s bottled water, which is far from the first place, Nongfu Spring’s 26.5% market share.
All brands are flourishing, and they are developing into the high-end market
In addition to ordinary bottled drinking water, Since 2006, various brands have continued to develop high-end bottled water. High-end water represented by "5100 Tibet Glacier Water" and "Kunlun Mountain" has risen rapidly. Ordinary bottled water is priced between 1 and 3 yuan, with an average profit margin of only 3.85%, while high-end bottled water relies on high-priced sales to achieve profitability. 6 to 7 times that of ordinary water, so major companies have entered the game.
Established in 2006, Tibet 5100, which focuses on high-end mineral water Relying on the huge orders from China Railway Corporation, revenue increased by 600% from 2008 to 2013; in 2010, Jiaduobao Group also set foot in mineral water and launched the high-end water brand "Kunlun Mountain." Since then, in Volkswagen With the promotion of consumption upgrade, high-end bottled water ushered in rapid growth.
In February 2015, Nongfu Spring launched high-end glass bottled water. In 2016, Nongfu Spring appeared at the Hangzhou G20 Summit.
In 2017, Baisui Mountain set foot in the high-end bottled water market and launched two high-end products, "Blairquhan Benlaiwang" brand natural mineral water and soda water.
In 2018, Laoshan Mineral Spring returned to its original intention, and high-end natural mineral water containing gas in glass bottles made a stunning appearance. In June of the same year, Reignwood Group's Fusi high-end water was officially opened and put into production.
New high-priced water products emerge in endlessly. In addition to the above brands, Coca-Cola Valser, Danone AORAKI, etc.Eyes on this flashpoint.
The Chinese bottled water market has experienced independent exploration, category innovation, ranking alternation, consumption upgrade, etc. After the trend, a stable pattern has been formed in which the top six (CR6) occupy more than 80% of the overall market share. It can be seen that the Chinese bottled water market has matured. However, in the face of consumption upgrades and the new consumer trend of the Z generation pursuing individualization, once a brand fails to keep up with innovation, it is easy to fall behind, and new brands still have a great opportunity to make up for it.
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