Preface
If you want to know about the world, ask Nongfu Spring! This "old-timer" in the drinking water industry has recently made a big news -- the launch of the "green bottle of pure water" is back! In an instant, the entire bottled water circle is boiling. This is nothing less than Nongfu Spring's head-on declaration of war against old industry rivals such as Wahaha and Cestbon. Some insiders joked that this is "the return of the old demon to the world, and the beginning of revenge". Who is the expert? How will this pure water war be staged? Come with us to see this wonderful industry drama!
1. Shocked: Nongfu Spring launched the "Green Bottle" pure water and entered the pure water market
Comparable to the mystery of the earth's destruction, Nongfu Spring has launched a "green water"! This can surprise consumers, and many people have complained that "I get dizzy when I see green water" and "is green water poisonous", there are many conspiracies behind it.
This 550ml "Green Bottle Pure Water" priced at XX yuan has an ingenious appearance design, using a soft grass green glass bottle, close to the natural color. In addition to the classic "Nongfu Spring" trademark printed on the front of the bottle, the three characters "pure water" are also marked, which makes people feel a sense of collision between innovation and tradition.
The back of the bottle is even more exaggerated about the natural nutrients it comes from, claiming that the water source is taken from the ten major underground deep reservoirs in China, including Qiandao Lake, Danjiangkou and Emeishan in Sichuan. A water station owner excitedly told reporters: "This is a brand-new water product relaunched by Nongfu Spring after 24 years, and it is directly benchmarked against the pure faucet Cestbon, which seems to be about to set off an industry war!"
Indeed, from the product design to the promotional concept, it is very different from the concept of drinking "natural water" that Nongfu Spring has always adhered to in the past. After many years, has Nongfu Spring completely given up its prejudice against pure water? Is it out of commercial considerations, or has it been impacted by consumers' tastes? Can such a "green 'turn'" inject new vitality into it? Let's wait and see!
2. Exposure of the inside story: the reason why Nongfu Spring really launched new products
In the first quarter of this year, the financial report was announced, and Nongfu Spring's packaged drinking water revenue fell below the 50% "warning line" for the first time! Industry insiders bluntly said: "Nongfu Spring's main natural water has reached the real industry ceiling, and there is no possibility of growth." "
A middle-level farmer who did not want to be named revealed: "Last year, everyone's salary rose by a few, and Mr. Zhong also saw that traditional single products no longer worked." It is no wonder that Nongfu Spring urgently needs to open up a new track, and it has become the best choice to regain the pure water that was once "bombarded" by Zhong.
In addition to the sluggish growth of major products, vacancies are also a major reason. According to the data, mainland consumers are still dominated by pure water and natural water, and the retail sales of pure water in 2023 will reach more than 60% of the overall drinking water. It can be seen that if you don't enter the pure water track, you will lose half of the country.
"On the one hand, the promotion of pure water is to seize the market, and on the other hand, it is also to compete with competitors in all categories.
Wahaha and Cestbon have long been running side by side on the two tracks of natural mineral water and pure water, striking each other at Nongfu Spring. Dark horse brands like "Youkuang" and Baisuishan also have good performance. According to the analysis of industry insiders, Nongfu Spring's "green bottle" pure water is to form all-round competition with them.
Some analysts pointed out that this was related to factors such as the development stage of the industry and consumption habits at that time, but in the final analysis, it was caused by Nongfu Spring's one-sided understanding of pure water and its lack of strategic vision. Now that we have regained pure water, it is equivalent to making amends, and opportunities are better than hesitation.
"It may have been a mistake in decision-making to give up at the beginning, but the current restart is not a 'return of the old demon', but a review of the situation to meet the general trend of consumption, which is where the vitality of Nongfu Spring lies.
3. Analysis of the industry pattern: a list of leading enterprises in pure water
The pure water market was originally the world of Cestbon, and Nongfu Spring can take away its home battle rights this time!
According to the data, the retail sales of the pure water "Cestbon" brand of China Resources Beverage, the parent company of China Resources C'estbon, reached 39.5 billion yuan last year, firmly occupying the leader position in the pure water market. Once Nongfu Spring's "green bottle pure water" is launched, it will be directly aimed at the fat target of Cestbon.
According to the analysis of industry insiders, Cestbon has actually done a very good job in marketing and channels, but it has been in the state of "two skins" of natural water and pure water for a long time, which has always been a bit "insufficient in focus" in terms of brand image. Nongfu Spring's positioning of "focusing on pure water" this time may be able to take the opportunity to overtake.
However, don't forget that Wahaha is also a valuable "big fish". Although this time-honored brand mainly focuses on children's nutritional drinks, it has also long been deployed in the field of natural mineral water, and in 2023, it will also launch a new product line similar to Nongfu Spring's "Green Bottle Purified Water". No wonder some people in the industry say that Nongfu Spring pure water is actually more like a direct reference to Wahaha.
In addition to large manufacturers, some small and medium-sized brands have also begun to emerge in the subdivision track. For example, Jingtian's "Baisui Mountain" natural mineral water will have sales of more than 11 billion yuan in 2023. There are also those dark horse brands with a sense of fashion, such as "Youkuang" and "Yike Huoquan", which are attracting the favor of the younger generation of consumers.
From the perspective of the overall industry ecology, the pattern of the two major tracks of natural mineral water and pure water has been basically formed, and the concentration of leading enterprises is relatively high. In the future, with the continuous addition of new brands and the increasingly fierce competition, there will be a major reshuffle within the two tracks, and finally present a "29" situation.
As for who will dominate the "two" and who will be the "nine"? To a large extent, it depends on the comparison of product quality, brand marketing, channel development, and other comprehensive strengths. However, one thing is certain, that is, consumers will be the biggest winners, and the quality and price will be further optimized, and the market prospect is promising.
Fourth, the analysis of industry experts:
A big gamble or perverse action? Nongfu Spring's "green" move has attracted wide attention and heated discussions in the industry. "From a strategic point of view, Nongfu Spring is undoubtedly betting on the future development trend of the industry. Song Tao, a well-known marketing expert, is not surprised by this, "After the growth of natural water peaks, it is the trend of the times to expand new categories, and pure water or other categories need to depend on the company's own positioning and strength." Nongfu Spring's choice of pure water is largely based on its original brand influence and channel advantages. "
Lu Yahui, a food and nutrition expert at Tsinghua University, said: "Nongfu Spring has a lot of experience in quality control and marketing strategies over the years, and if we can replicate these experiences in the purified water business, we are expected to get a piece of the pie." Of course, the biggest challenge is how to gain consumer recognition in a short period of time, which requires innovative brand marketing strategies. "
Zhang Li, a senior analyst in the industry, analyzed this "self-greening" from another angle: natural water and pure water are fundamentally different in terms of production and raw material sources, and blind accumulation of categories will only increase operational complexity and cost pressure. She said bluntly: "How to grasp the strategic direction of enterprises in subdivided fields and form differentiated competitive barriers is the way to win." "
However, if this big gamble wins, the industry pattern will also be reshuffled. Lu Xiaodong, a professor of marketing at Tsinghua University, believes that if Nongfu Spring makes a breakthrough in the field of pure water, it will be a big impact on the current industry leader Cestbon, and may even trigger a brand remodeling.
"My suggestion is that Nongfu Spring should dare to continue to innovate and make breakthroughs in channels and marketing, and at the same time increase investment in product quality, so as to create a real 'natural + pure' dual brand advantage. Song Tao said, "For old enterprises such as Cestbon and Wahaha, we should also take precautions and actively respond, and make new explorations and attempts in differentiated marketing and younger brands." "
Zhang Li believes that if the industry bigwigs do not want to be overtaken by Nongfu Spring, they must focus on the main business and identify the subdivisions to continue to make efforts: "Natural water takes the quality route, pure water does a popular price war, and small and medium-sized brands must take the characteristic route to form differentiated competition." "
Industry insiders pointed out that with the deepening trend of consumption upgrading, the bottled water industry is expected to usher in a new stage of development in the future, and consumers are the ultimate winners. So, who will win this battle? We'll see.
5. Other people familiar with the inside story broke the news
At the same time that the outside world was in an uproar about Nongfu Spring's "green" new products, some people familiar with the matter revealed some more details to us!
A veteran employee of Nongfu Spring, who is about to retire, said that the company has been gearing up for this new product for a long time. "At least two years ago, we have been planning to launch this pure water, and a project team has been set up to do preliminary research. "
And the final positioning of this product turned out to be from the mouth of Zhong Sui. The old man personally ordered the clearance, including bottle design, formula research and development, etc., all of which he led. The employee said, "Pure water was his biggest 'selfish killer' back then, and now he has personally justified its name, which can be regarded as a timely correction." "
Another insider revealed that in order to promote the new product, Nongfu Spring can be said to have come up with a killer marketing strategy and channel resources...... "But I don't know the specific content, you better wait for the official news to be released." "
It is worth mentioning that it is reported that Nongfu Spring's "Green Bottle Purified Water" may be better than the previous pure water in terms of product formula and taste, and even some special versions of nutritional fortification will be launched in the near future... However, these are still at the rumor stage, so let's wait and see what the official news will be.
In short, with Nongfu Spring's persistent pursuit of product quality and accurate control of industry changes, it is believed that this blockbuster new product will bring new vitality and shock to the bottled water market. Of course, as the end of the revelations, I also call on everyone to protect the sources, so as not to affect the work and life of the relevant people, let us look forward to the latest development of the incident!
epilogue
Whether it is an old enterprise or a rising star, only by constantly innovating and breaking through oneself can one finally excel. We believe that in this new round of industry reshaping, some outstanding players who truly represent quality, brand and development concepts will eventually emerge. As consumers, we are the biggest beneficiary, and there will be many surprises in the future of bottled water products in terms of quality optimization and price concession. I wish all enterprises to thrive in the competition, and let us look forward to a bright future for the industry together!