In 2024, perhaps the year of the price battle in the bottled water market, various major drinking water brands, such as the farmers ' mountain springs, the wakhaa and the yibao, were sold at reduced prices, and the minimum price for drinking water was less than $0. 42/bottle. The expert called the low-cost strategy “no voodoo,” and the consumer called it “the real good.” (thiru evening: 0531-85193656; mailbox: 4056177016@q. Com)
A dollar buys two bottles of water
On 13 november, journalists arrived at a large supermarket chain in jenan, where a price label indicated that the major drinking water enterprises were running low prices. Yibao sells $1. 8 for pure water at 555 ml/bottle, $550 ml/bottle for red bottled farmer springs at $550 ml/bottle and $596 ml/bottle for wakha。
The price of packaged volume vendors is even more intense. Green bottle farmers sold $550ml*12 bottles at $9. 9, kang master sold $380ml*15 for water, $596ml*12 for water purification at $14. 4 for water purification at wakha, $596ml*12 for water purification at $14. 8 for water purification at wakha, $16. 8 for water purification at kingda's 360ml*12 bottles and $14 for 500ml*12 bottles at shang dynasty spring. Among them, the lowest price is today's mallion's pure water, with a sale price of $550 ml*12 and a bottle of less than $0. 42/bottle。
Bottled water in a supermarket chain
According to the shopping director at the mall, the price of drinking water, such as green bottles and red bottles for farmers in mountain springs, dolls and ebays, is two dollars per bottle, and it is now necessary to catch up with the shop and move on. “we did similar promotional activities in july-august, which lasted about two weeks. The buyer said。
In addition, there are currently no promotions related to drinking water for bees, oranges, 711 chains and general stores. A convenience shopkeeper told journalists that during the summers, there had been promotions for the sale of potable water brands such as the green bottle farmer springs, the vahaha, and the yibao. Will there be any promotions at a later stage, subject to further notification。
In april this year, it was understood that farmers ' mountain springs were restarting pure water products and introducing green bottle products that were different from red bottles of natural drinking water at a price of $2. 00. In june, the product was the first shot at price. Following up quickly, the brands of yibao, vahaha, and kingda, the market for drinking water was in a heavy price battle。
Why is the bottled water market so rolling
The market for bottled drinking water has been relatively stable for a long time. According to the report, in 2023, the market share of farmers in china's packaging of drinking water was 23. 6 per cent, 18. 4 per cent, 6. 1 per cent, 5. 6 per cent, 4. 9 per cent, and the top five brands dominated most of the market。
But in 2024, the storm changed. As of the end of february this year, farmers' mountain brands and products were severely negatively affected, resulting in a gain of 8,531 million yuan in the first half of the year for packaging potable water products, a decrease of 18. 3 per cent from $10,442 million in the same period last year, which amounts to over 1. 9 billion less。
However, the competition has received a “blowing flow” of pure water, which was once sold out in the official shivering shop and in multiple retail terminals. According to the 2024 sales conference held in vakha in november, there was a 188 per cent increase in bottled water in 2024。
It seems that the price reduction strategy of the farmers' mountain springs is being pushed against their will. In other words, it is a proactive attempt to add product categories, supplement product line gaps and stir up the pure water market. Because there is greater potential in the sub-area of pure water in the red bottle farmer springs than in the natural water market。
Price of bottled water for farmers in mountain springs
According to the report, china's retail-based market for soft drinks in 2023 amounted to $909. 2 billion, of which the largest group of products was filled with drinking water in retail terms. The market for clean drinking water in 2023 accounted for 56. 09 per cent of the packaged drinking water. The market size was $215 billion, with a projected compound annual growth rate of 7. 9 per cent between 2023 and 2028, that is, the fastest growing of all soft drinks, and the rate of increase will be higher than that of natural mineral water。
A big cake like this is enough for the drinking-water industry to move. For farmers in the mountains, the price reduction policy is also “retarded”: according to data published by farmers'springs, from 31 may to 3 june, the total sales of pure water from green bottles exceeded 1 million. On that day, “6/18”, pure water products entered the top of the list of new drinks in kyoto。
"no voodoo" or "good smell"
Essentially, the bottled water business does not sell water, but the difference in costs。
The most costly link in the entire bottled water chain, apart from water extraction, treatment, testing and bottling, is transport. In this price belt of us$ 1-2, once the sales site is more than 500 kilometres from the production site, transport costs squeeze profits, while the 10 water sources in the farmers'springs are largely evenly spread across the country's main consumer markets, giving them greater bargaining power。
In an interview with china's food industry analyst, zhu danbhorn, stated that the overall cost of bottled water for enterprises with economies of scale was around 40 cents per bottle, or more than 30 cents if compressed to the extreme. However, in his view, the low-cost strategy of the farmers' mountain springs “do not speak of martial arts”, brought the entire price of the current drinking water industry into an era of disorderly competition。
The price battles between the smoke and the smoke have led consumers to call "the tasty". Mr. Lee is putting a bag of green bottle farmers' springs in a shopping cart. “i have no idea of natural water, pure water, nor any particular preference for the brands of peasant springs, wahaha and ebay, usually cheap. I'm going to put more in place before the price goes down." mr. Lee said that he needed about four parcels of drinking water a month, at a promotion price, to save more than 50 times a month。
For the future development of the drinking water sector, judambhorn had predicted the continuation of the 6+n model, i. E., six national and n regional brands. “the effects are more pronounced in the whole industry, with six national brands projected to account for more than 90 per cent of the market, and small and medium-sized drinking water enterprises dropping out of competition over the next two years.”
Zilong
