As the 'ice cream assassin' controversy settles, 'baby water assassins' follow suit. Some food and beverage products pursue high prices without corresponding quality, leaving consumers feeling 'stabbed' after payment, which not only affects brand favorability but also disrupts normal market price expectations. In contrast, some high-quality natural mineral waters still adhere to a people-friendly pricing strategy.

With improved quality of life, the health benefits of minerals have received unprecedented attention. Mineral water, with its numerous advantages such as purity, naturalness, and richness in beneficial mineral elements, is becoming the first choice for daily cooling and thirst quenching, replacing ice cream and purified water.

01 Bottled Water Development Gallops Ahead Huge Market Space Development trend of bottled water in China: Bottled water originated in China in 1930. After more than 80 years of development, it has become the largest sub-category in the soft drink industry. In 2021, bottled water held a 20.3% market share in the soft drink industry. With rising incomes driving consumption upgrades and health pursuits, the demand for healthy drinking water is growing. Bottled water, with its advantages of hygiene, health, and convenience, is favored by consumers and developing rapidly, with the market size exceeding 200 billion yuan in 2021. Nielsen data shows that per capita consumption of bottled water in China increased from 21.9 liters in 2014 to 34 liters in 2019, a compound annual growth rate of 7.3%. High-end drinking water saw a growth rate of 46%-50% in 2017. As for mineral water, China's per capita consumption is among the lowest in the world. Based on current mineral water production, per capita annual consumption is only 10 liters, equivalent to 6% of Italy's consumption level. Compared with other developed countries, the bottled mineral water market has huge potential.

02 Consumption Upgrade Trend Arrives Kunlun Mountain Mineral Water Wins by Quality 1. From physiological satisfaction to quality demands, bottled water upgrade is an important manifestation of China's consumption upgrade. With changes in China's development stage, consumer demand has gradually shifted from basic needs to health needs and emotional needs, from survival-oriented consumption to quality- and enjoyment-oriented consumption, and from material consumption to service consumption. Water consumption upgrade is an important manifestation of China's economic consumption upgrade! Humanity's pursuit of healthy, good water is endless. Over the past decade, the packaged drinking water industry has developed rapidly, achieving the upgrade from tap water to bottled water for Chinese people. In the next decade, the market will shift from purified water to natural mineral water, and from surface water to snow mountain mineral water.

2. The evolution of bottled water retail prices: the 4-yuan water era is coming. The retail price range of bottled water has gone through the 1-yuan, 2-yuan, and 3-yuan eras. With consumption upgrades and increased health awareness, consumers' requirements for drinking water quality are also rising. The 4-yuan era for bottled water has arrived. At the same time, while the food and beverage industry is generally raising prices, Kunlun Mountain Mineral Water is going against the trend by adopting a down-to-earth marketing strategy, officially entering the mainstream drinking water market and embracing the water consumption upgrade.

3. Kunlun Mountain Mineral Water's down-to-earth marketing: affordable prices achieve quality victory. According to the 'Analysis Report on the Development Pattern and Investment Opportunities of China's Mineral Water Production Industry (2021-2021)' by Guanyan Tianxia, the top five high-end mineral water brands in China in 2021 were Kunlun Mountain, Evian, 5100, Pamir, and Linbi, with market shares of 48.57%, 22.80%, 20.00%, 3.88%, and 1.85%, respectively. Kunlun Mountain holds nearly half of the national market sales share. At the beginning of the year, Kunlun Mountain changed its original champagne bottle shape, upgraded its packaging to enter the mainstream drinking water market, and priced its mainstream 550ml mineral water at 4 yuan, allowing consumers to enjoy the satisfaction of high-end mineral water at a more affordable price. So why Kunlun Mountain?

First, Kunlun Mountain's high quality is inseparable from the unique advantage of its sole water source. The bottled water market is a 'strong get stronger' market, and those with significant shares are invariably companies with high-quality water resources. Kunlun Mountain has achieved a 'double uniqueness' in terms of water source: it is the only mineral water factory on Yuzhu Peak of Kunlun Mountain, and the only water source for Kunlun Mountain Mineral Water is Yuzhu Peak. Since the late 1990s, the Kunlun Mountain team spent ten years of arduous exploration and finally discovered rare mineral springs with abundant resources and excellent water quality in the Kunlun Mountains, known as the 'ancestor of all mountains,' 'source of three rivers,' and 'water tower of China.' Located at an altitude of 6,000 meters on Yuzhu Peak, after more than 50 years of natural filtration and mineralization, the water possesses the four golden qualities of 'pure, mineral-rich, small molecular cluster, and slightly alkaline'—natural purity, rich and balanced minerals, rare small molecular cluster structure, and natural weak alkalinity—better meeting consumers' demands for improved water quality.

Second, Kunlun Mountain 'goes all out' to promote and lead the national drinking water upgrade. Compared with 'concept waters' on the market, Kunlun Mountain has been positioned as high-quality since its inception, and only produces high-quality mineral water. It firmly believes that the bottled water consumption upgrade is not about launching new concepts for consumers to pay for, but about consistently maintaining quality and continuously guiding correct drinking water consumption habits. To enhance consumers' attention to drinking water health and improve their ability to identify and understand high-quality drinking water, Kunlun Mountain spares no effort in consumer education on water upgrade. The 'China Residents' Daily Drinking Water Grading Guide' released by the Water Industry Committee of the National Development and Reform Commission's Public Nutrition and Development Center, together with the Beijing Public Health Drinking Water Research Institute, classifies drinking water into four categories. Among them, natural snow mountain glacier mineral water, due to its rare source, low susceptibility to pollution, and richness in various mineral elements, is listed as the highest grade first-level drinking water.

Third, Kunlun Mountain also spares no effort in brand building. Life lies in movement, and water is the source of life. In brand building, Kunlun Mountain continuously leverages international events and top sports events consumption scenarios to guide drinking water consumption upgrades and shape the brand power of high-quality mineral water.

  • In 2010, Kunlun Mountain Mineral Water became the official designated drinking water for the Guangzhou Asian Games.
  • In 2012, it participated in the Berkeley World Water Tasting Competition, known as the 'Oscar of the water world,' and won the 'Gold Medal for Good Water.'
  • In 2014, it was selected as the official designated drinking water for the APEC Hangzhou Summit.
  • In 2020, Kunlun Mountain partnered with CCTV to become the designated water for its high-end interview program 'Dialogue.'
  • In 2022, Kunlun Mountain Mineral Water was selected for CCTV's 'Brand Powering the Nation' project.

Kunlun Mountain has also been the platinum sponsor and sole designated drinking water for the China Open tennis tournament for six consecutive years, and the official partner of the World Snooker high-end event for three consecutive years, continuously gaining recognition from international events and top competitions, as well as the favor of elite consumers pursuing quality life.

03 Aiming for 10 Billion, Kunlun Mountain Accelerates Full-Region Layout As a leader in the high-quality mineral water market, Kunlun Mountain's development is evident to all. It continues to seize the development opportunities of quality-oriented water consumption upgrades and makes strategic layouts and developments in three major aspects: product, channel, and market. After entering the mainstream drinking water market in 2022, it quickly achieved over 50% growth.

In terms of products, Kunlun Mountain Mineral Water will further enrich and improve its product matrix, providing high-end water in different specifications for different consumption scenarios. In terms of channels, it will embark on an 'all-channel path,' building on its previous advantages in special channels such as gas stations, cinemas, airports, and high-speed rail, further expanding mainstream channels to achieve full coverage of different consumer groups through diverse channels. In terms of market, Kunlun Mountain's strategy is to further deepen its focus on first-tier markets and gradually expand into second- and third-tier potential markets.

Finally, we are confident that with its accumulated brand assets over the years, experienced and excellent team, and industry-leading partner ecosystem, Kunlun Mountain Mineral Water will achieve ultra-high-speed leapfrog development on the new track.