High-end mineral water is at a discount at the top of kyoto
As the last month of the traditional drinking water promotion season began, in addition to the usual price exchange for low-end brands, a recent visit by beijing newspaper journalists found that high-end water had begun to sell on a massive scale this summer, under pressure from competition in the market. In the case of mount kunlun, known as the high-end water source, not only did a box of $50 worth cards be bought and delivered through traditional retail outlets, equivalent to a discount of 60 per cent, but activities such as 88 dollars less 10 per cent were also launched in electricity outlets, amounting to 8. 50 per cent. Market analysis, supported by high profits, is that high-end water can easily offer a six-percent discount to preserve brand image, but this year, with alsan's full-market product of the alpine equivalent, there is greater pressure on high-level brands, such as kunlun, to launch a six-percent sale for price swaps, but it does not prevent consumers from wondering: what is the profit from high-end water
It's a discount
During a visit to the market, beijing business journal journalists found that the purchase of a box for a $50 full-value card in kunlunshan, a box sold for $120, amounted to a discount, and that in beijing, in many large supermarkets, posters for the marketing of kunlun hill were featured, and consumers were given the opportunity to buy up to $4999 worth of activity incentives for two bottles and more。
Not only in traditional retail outlets, but on the electric power company platform, preferential activities ranging from $116 to $16, 88 to $10 or $8 are under way in kunlun hill. In addition to kunlun, the alshan natural active mineral springs, which are priced at similar prices, have also introduced such activities as a direct reduction of $20 per container and a full reduction of $68 per tank of $10. According to a supermarket worker to a beijing news reporter, the supermarket's drinking water activities concentrated on the brands of farmers ' mountain springs, kan, coca-cola ice creams, which cost about $15 per box, and the promotion of drinking water at more than $4 per bottle。
Sold to save the city
According to chu danbong, researcher at the china food business research institute, high-end water prices have been reduced to promote sales, directly related to the increased competition in the industry, in addition to catching the tails of the selling season。
He described the 10 per cent market share of high-end water in the domestic drinking water market, of which tibet accounted for 20 per cent, kunlun mountains for 10 per cent and 100-year-old mountains for 10 per cent. While the same high-end markets exist, the three brands do not compete directly with each other and maintain a stable market share, owing to poor prices. However, last year, when products, including al hill, increased in volume and prices, were close to the kunlun mountains, thus making them the subject of targeted competition. “as judged by the market coverage of several of the current brands, the problem of taking 10 per cent of the market share has not been significant, thus having an impact on existing brand patterns, particularly on the market share of kunlun mountain.”
However, the chinese consultant, the food industry researcher, has also stated that the low profit level of high-end water in the country is high and can support the marketing strategy of the enterprise, which earns even a discount。
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High-end drinking water, in the view of industry, is typically a “two-high” industry, with high market growth and high profitability. According to judambhorn, last year, although the market share of high-end drinking water was only around 10 per cent, it grew at an annual rate of between 30 and 40 per cent, with high-end water market capacity of not less than $10 billion over the next five years. This is precisely why foreign investment and national production are seen in this area。
Suspected profit
For example, in kunlun hill, which is priced at $120 per box, the cost of production is around $25, the cost of logistics across the country is $10, and, together with other costs, the profit margin is over 60 per cent。
“for high-end water, capture of water sources is a one-time input, while the most important cost input in the later period is transportation costs, which, supported by a profit margin of more than 60 per cent, will not cost the enterprise half a loss, but the high-end positioning of the brand will also be reduced.”
The declaration shares the view that kunlun hill opted for a six-sum promotion at the expense of profits and brands in exchange for market share. She stated that promotion strategies were detrimental to brand maintenance and should not be used as a tool for high-end brand-taking, and that it was more important for high-end water to attract consumers through products, brand culture。
In response to the above-mentioned issues of sale discounts and sales revenues at kunlun hill, the beijing newspaper correspondent contacted the company's relevant officials, but no response had been received as of the date of distribution。
Responsible editor: zhang dei
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