The water business may seem unremarkable, but it is highly lucrative, having produced several billionaires, from Wahaha's Zong Qinghou in the past to Nongfu Spring's Zhong Shanshan today. Less known is that behind Ganten, the leader in the natural mineral water market, stands another billionaire—Zhou Jingliang, known as the 'Father of China's Packaged Water.'
The water business has a magical ability to attract money.
Behind Wahaha, Zong Qinghou has repeatedly topped China's rich list. Before Nongfu Spring went public, few knew of a person named Zhong Shanshan. But now, Zhong Shanshan remains China's richest person.
In fact, there is an even more mysterious water billionaire than Zhong Shanshan—Zhou Jingliang, known as the 'Father of China's Packaged Water.' He started at C'estbon, produced China's first bottle of purified water, and later founded his own company, Ganten.
Unlike C'estbon's focus on purified water and Nongfu Spring's natural water, Ganten focuses on natural mineral water and is the leader in the mineral water market, positioning itself as the 'aristocrat of water.'
In the history of China's bottled water development, Zhou Jingliang is a pivotal figure. Despite his billions, he is extremely low-key, rarely appearing publicly in recent years, and his image is absent from Ganten's official website.
The Invisible Billionaire
On the 2023 Hurun Global Rich List, Zhong Shanshan continued to top China's rich list with 465 billion yuan, while former richest man Zong Qinghou still had wealth of 100 billion yuan. Zhou Jingliang, whom few notice, had wealth of 12 billion yuan.
Closely tied to his wealth is Zhou Jingliang's water business.
Zhou Jingliang was born in Hainan in 1950. In 1984, China Longhuan (Shekou) Co., Ltd. (the predecessor of C'estbon), which made beverages, was established in Shenzhen. Zhou Jingliang was its first general manager. In 1990, under Zhou's leadership, the company produced China's first bottle of purified water and subsequently registered the C'estbon brand.
Having gained experience in bottled water operations and sensing market changes, Zhou left C'estbon in 1992 to start his own business, founding Ganten (Shenzhen) Food & Beverage Group Co., Ltd. (hereinafter referred to as Ganten) in Shenzhen, initially also producing purified water.
After starting his own business, the biggest challenge was how to open up sales channels.
It was truly a stroke of luck. In August of the same year, Shenzhen began issuing stocks, attracting millions of people to buy. Because of the stocks, the entire city of Shenzhen was buzzing. Zhou had a flash of inspiration and transported Ganten purified water to stock sales points for sale. Within two or three days, a million cases of water were snapped up.
Zhou and Ganten, who were short on cash, welcomed the working capital.
At this time, although Ganten was still in its infancy, the future giants of China's bottled water had not yet been born. It wasn't until 1996 that Wahaha, already famous in the health products market, launched purified water products; Nongfu Spring was also born; and the troubled C'estbon was waiting to be acquired by China Resources.
In those years, the packaged drinking water market was dominated by purified water.
In 2001, when purified water sales were at their peak, Zhou noticed that the mineral water market was expanding, but few companies had entered it. In 2004, Ganten launched Ganten Mineral Water.
Image source: Visual China
Before this, Zhong Shanshan of Nongfu Spring had sparked a 'century water war,' directly targeting giants like Wahaha and Robust that produced purified water, with Zong Qinghou and peers fighting back. This seemed like a battle between natural water and purified water, but in reality, it was more like Nongfu Spring using hype for marketing.
While Nongfu Spring, which made natural water, was locked in close combat with purified water giants like Wahaha and Robust, Master Kong launched mineralized water in 2003—adding a certain amount of minerals to purified water.
Master Kong's 1-yuan mineralized water became a weapon for attacking cities, leading to the rapid rise of Master Kong's packaged water. Competition among giants like Wahaha, Master Kong, and Nongfu Spring became increasingly fierce.
In 2007, Ganten repositioned Ganten Mineral Water, entering the high-end mineral water market and positioning the product as the 'aristocrat of water,' a positioning that continues to this day.
Ganten differentiated itself in terms of category, packaging, marketing, and price. For example, the 'aristocrat of water' marketing; and the bottle shape broke the mainstream 'slanted shoulder' design, changing to a 'flat shoulder' for greater recognition.
To date, Zhou Jingliang's Ganten (Shenzhen) Food & Beverage Group Co., Ltd. has three bottled water brands: 'Ganten,' 'Ganten Mineral Water,' and 'Blairquhan.' Among them, Ganten focuses on purified water, Ganten Mineral Water on natural mineral water, and Blairquhan on high-end mineral water.
Of course, Ganten Mineral Water is the core. In the entire domestic bottled water market, Nongfu Spring has been the leader for many years. However, in the mineral water segment, Ganten has ranked first for many consecutive years.
If Nongfu Spring hadn't gone public, no one would have predicted that Zhong Shanshan would become China's richest person. Ganten has not yet gone public, and Zhou Jingliang remains an invisible billionaire.
Marketing the 'Aristocrat of Water'
In China's packaged drinking water market, many brands compete. According to data from Qianzhan Industry Research Institute, in 2021, by sales volume, the top five were Nongfu Spring (11.8%), China Resources C'estbon (8.1%), Ganten (4.8%), Master Kong (3%), and Wahaha (2.4%).
Although Ganten lags behind Nongfu Spring and C'estbon, becoming the third-largest in the industry is quite an achievement. It's worth noting that despite starting early, Ganten was not in the top three for a long time.
Marketing is a major focus in the packaged drinking water industry.
Although C'estbon appeared earlier, it was Wahaha, which pioneered celebrity endorsements, that first rose in the packaged drinking water market.
Wahaha invited Jing Gangshan to endorse, using his song 'My Eyes Only Have You' as the main advertising song, and took him on a national tour to meet fans, giving away free samples in supermarkets and stores. After Jing Gangshan, Wahaha's cooperation with Wang Leehom lasted longer.
Additionally, in 2001 and 2002, Wahaha spent heavily to win the 'advertising king' for a 15-second slot after CCTV's weather forecast. In those years, Wahaha was the dominant player in the bottled water market.
Wahaha's challenge came from Nongfu Spring. Zhong Shanshan made shocking statements: purified water lacks minerals and is not as good as natural water, 'purified water is not beneficial to human health,' and declared that Nongfu Spring would no longer produce purified water but would focus on natural water.
After launching the 'century water war,' Nongfu Spring used a series of event marketing and catchy ads like 'We don't produce water; we are nature's porters' to embed the concept of 'natural water' in people's minds. Nongfu Spring gradually rose to the top of China's bottled water market.
Relying on existing brands and channels, Master Kong, which sold instant noodles, sold its 1-yuan mineralized water nationwide. Only after being acquired by China Resources did C'estbon begin its national expansion with China Resources Snow's 'mushroom strategy.'
Each giant has its own 'playbook,' and competition among them has been fierce. Although Ganten was established earlier, it didn't stand out among the giants' strategies. It wasn't until the launch of Ganten Mineral Water that it gradually carved out its own territory.
Ganten's rise is based on differentiation, avoiding the giants' strengths.
When 1-yuan and 2-yuan water were still mainstream, and while purified water and natural water competed, Ganten's 3-yuan mineral water indeed seemed 'noble.'
Zhou Jingliang's statement, 'We don't sell water; we sell culture,' further revealed Ganten's differentiated marketing approach.
'Aristocrat of water—Ganten.' With this slogan, Ganten directly distinguished itself from other brands. Ganten's official website states in large letters: 'Ganten is natural mineral water, not natural water.' Clearly, this is a dig at Nongfu Spring, the leader in bottled water.
Since 2013, Ganten has released four advertising films with the same background music, like a series, featuring castles, princesses... but no dialogue between characters, like 'silent ads,' ending with 'Aristocrat of water—Ganten.'
From a mass communication perspective, these ads don't accurately convey effective information, and many people say they don't understand the story behind them. However, the elegant and noble atmosphere, combined with the long-used 'aristocrat of water' slogan, has over time reinforced brand memory.
Image source: Visual China
In sports marketing, Ganten places more importance and shows more loyalty than its peers.
For years, Ganten has been tied to sports. The Premier League, women's volleyball, Thomas & Uber Cup, World Snooker China Open, Australian Open, China Open, Chinese Super League, CBA, FIBA, FIVB, WTT, BWF... Ganten has appeared in all of them. At the recent Sudirman Cup and Durban World Table Tennis Championships, Ganten was also present.
Through these major top-tier sports events and projects, Ganten aims to shape a 'noble water culture.'
A brand researcher told 'Market Insights,' 'Sports events release positive, uplifting energy, making it easier for consumers to gain higher recognition of the brand. Athletes have high standards for food and beverages, so sponsoring sports events can easily create positive brand associations.'
Since 2013, Ganten has entered the top five in China's bottled water market.
Ganten has built its 'noble temperament,' which is probably what Zhou Jingliang calls 'water culture.' But when you think about it, isn't it just a bottle of water? Competitors can come at any time.
Giants Besiege Ganten
With a differentiation strategy and unique marketing, Ganten emerged from among the giants. Although Ganten Group has not disclosed relevant sales figures, after becoming the fifth-largest in the industry, Ganten became fourth in 2016 and third in 2018.
Packaged drinking water is the largest sub-category in the beverage industry, with a market size exceeding 200 billion yuan. This 200-billion-yuan market includes purified water, natural mineral water, and other types of drinking water (mainly including natural spring water, natural water, and other drinking water).
Representative brands of purified water include C'estbon and Wahaha; the representative of natural water is Nongfu Spring; and the representative of natural mineral water is naturally Ganten. In the industry's hierarchy, natural mineral water stands at the top, with relatively higher prices.
Brands like Wahaha, Master Kong, C'estbon, and Nongfu Spring mainly compete in the 1-2 yuan price range, while Ganten, at 3 yuan per bottle, has led the mineral water segment for many consecutive years.
Guoyuan Securities once analyzed that the 2-yuan price range accounts for over 50% of market sales, but the market structure is most solidified, with strong control by leading brands, making it difficult for other brands to enter; while leading brands have weaker control over the 3-yuan price range than the 2-yuan range, making it easier for other brands to enter, and future competition will be fierce.
That fierce competition has already arrived.
In March, Jinmailang launched its Jinkuang mineral water, priced at 3 yuan for a 570ml bottle, the same capacity and price as Ganten. The accompanying slogans are all like 'Jinkuang premium mineral water,' 'Premium to the sky,' 'Drink premium today.'
On a shelf in a Beijing supermarket, Nongfu Spring's mineral water products. Image source: Market Insights
In 2021, Nongfu Spring launched Changbaixue natural snow mountain mineral water, announcing its entry into the 3-yuan price range. As the leader in the packaged drinking water market, Nongfu Spring has heavily promoted its mineral water products. In 2022, Genki Forest launched Youkuang natural mineral water, setting the retail price at 3 yuan upon official launch. The same year, C'estbon also launched its natural mineral water 'C'estbon Lu.' Many other mineral water brands have also 'lowered their prices' to around 3 yuan, such as Evergrande Spring, Kunlun Mountain, and Evian.
The direct reason for brands' efforts in the 3-yuan water market is that the 2-yuan price range has long been dominated by Nongfu Spring and C'estbon, each with their own advantages, making the market relatively fixed; the 4-yuan price range has not yet become mainstream, and almost no brand can be easily accepted, as Evergrande Spring is a precedent.
In the 3-yuan mineral water price range, Ganten has not established an absolute advantage, and this market has large profit margins, giving companies sufficient buffer and dilution capacity for cost changes. How could the giants not be tempted? All the major players are pushing into this market, undoubtedly forming a siege against Ganten. How to defend and counterattack, how to maintain existing market share or even grow further? These are challenges Ganten cannot avoid. Ganten must respond.
There are many brands of all sizes in the bottled water market. When everyone starts to compete in the mineral water market, prices will also rise. For consumers, don't forget the main purpose of drinking water—staying hydrated—just because of the many marketing gimmicks.
References: 'Mineral Water, Purified Water, Spring Water: The Tripartite Water World,' Information Times, 2011; 'Noble Water Culture Helps Ganten Win the Mineral Water Industry Championship,' Southern Daily, 2011.