Recently, many photos of 3-yuan water hitting the market have appeared in my social media feeds, and after discussions with friends, I feel that many are still using the 2-yuan water approach for 3-yuan water, which will likely lead to failure. Indeed, over the past three years, consumers' health awareness has significantly improved, and their demands for water quality have risen. Coupled with the continuous guidance and education on water quality by companies like Nongfu Spring, Ganten, Kunlun Mountain, and Evergrande Spring, more entrepreneurs have clearly seen the development prospects of the bottled water industry, especially the mid-to-high-end segment. As a result, various water brands have sprung up like mushrooms, leading to fierce competition in the drinking water market, with most water companies ending up with poor results. First, let's define: 3-yuan water refers to water with a retail price of 3 yuan per bottle in the mass distribution channel. The mainstream price range for bottled water is 1-3 yuan. If we compare the price range to a balance, 2-yuan water is in the middle, with 1-yuan water on the left and 3-yuan water on the right. Currently, this balance is starting to tilt to the right. In the market, 1-yuan water has formed a duopoly: Jinmailang and Master Kong; 2-yuan water also has a duopoly: Nongfu Spring and C'estbon; only 3-yuan water has a significant player: Ganten. Today, I'd like to share my thoughts and views on developing the 3-yuan water product itself. Things You Must Know to Operate 3-Yuan Water In the current market environment, a 550ml water retailing at 3 yuan is considered mid-to-high-end for mainstream consumers. Besides basic physiological needs, it requires good health awareness; otherwise, it's hard to drive purchase behavior. Given the current level of Chinese consumers' understanding of water, only natural mineral water has such characteristics. So, to create 3-yuan water, you must focus on natural mineral water. Let's look at some data: Data source: UA Market Research Report Consumers have the highest demand for quality (how to shape high quality through product strategy becomes key), reaching 43.75%, followed by taste (which depends on the mineral content in the water, inherent to the water), at 31.5%. Data source: UA Market Research Report Summarizing data from several authoritative departments, we can identify several attributes of 3-yuan water:

  1. Natural mineral water has strong growth potential; 2. It must meet the health needs of target consumers; 3. Key to sales: quality is most important, taste second; 4. Mainstream packaging is around 500ml. Must Have Knowledge of Natural Mineral Water
  2. Definition: Water that naturally emerges from deep underground or is collected via drilling, containing certain amounts of minerals, trace elements, or other components, unpolluted in a certain area and with preventive measures to avoid contamination; under normal circumstances, its chemical composition, flow rate, water temperature, and other dynamic indicators are relatively stable within natural cyclical fluctuations.
  3. National standards for mineral water boundary indicators:
  4. Mining license: With the country's strict control over the drinking water market, mineral water production requirements are increasingly stringent. In recent years, the state has included mineral water in liquid mineral resources. To produce genuine mineral water, at least a provincial-level land and resources department must issue the license. If you produce genuine drinking natural mineral water that meets the national standard GB-8537 (2008), you must obtain a mining license. In addition, you need a "Drinking Natural Mineral Water Appraisal Certificate" issued by a provincial-level or above appraisal committee, plus other conventional qualifications such as water extraction permit, industrial production license, and business license. Only then can you produce (the process is lengthy and relatively difficult). The above knowledge is the entry-level and foundation for mineral water. To make a mark in mineral water, you must thoroughly study these aspects. Of course, there are shortcuts: with the disappearance of China's demographic dividend, many high-quality water production lines with heavy assets are experiencing severe overcapacity, and equipment depreciation is increasingly serious. At this time, finding a contract manufacturer with relevant qualifications is relatively easy. Strive to Create Target Consumers' Health Needs The health needs topic is broad, but from the consumer's perspective, there are only a few labels: 1. Is it natural? 2. What credibility and health philosophy does the brand communicate? 3. What beneficial factors are in the product? What makes it different? For water companies, the most important thing is product differentiation. A bottle of mineral water contains only water and mineral elements. Making a fuss over water is unscientific; you must focus on the levels and differences of mineral elements. And you must rely on brand communication to continuously amplify the impact of high or low levels of certain mineral elements on human health (preferably with authoritative endorsements, such as experimental data from well-known domestic medical institutions). By discovering differentiation, creating differentiation, getting authoritative endorsement, amplifying differentiation, and ultimately empowering the mineral water, you can create a super IP. People have different health needs, so you need to know your product well in terms of ions: what are the levels? How many types? What impact on the body? Identify the pain points of niche groups, amplify the urgency of your product for these groups, and continuously educate them to cultivate loyal consumers (a reminder: if you want to differentiate through mineral ion types and levels, be prepared for a long-term battle; consumer education requires long-term, professional, and continuous investment, otherwise it may be ignored). Quality is most important, taste second Quality has two non-negotiable dimensions: first, packaging aesthetics and feel; aesthetics need no explanation, feel depends on whether the bottle design fits the hand; second, the shaping and communication of health philosophy, which is a long-term process, like Nongfu Spring's weakly alkaline water being beneficial to health. Quality One: Packaging This is a link that is highly valued but not carefully considered. In my view, 80% of 3-yuan water bottles on the market are unqualified; they lack selling points and functionality, and have no brand communication value, with almost identical design concepts. You can learn from Ganten: its bottle is elegant and refined, with texture and excellent grip when drinking, truly worthy of the title "noble among waters." So, you must make a big deal out of bottle design, because the first sensory impression for consumers is always the bottle shape; the concept of first impressions must be opened with the bottle. It's worth emphasizing: first, bottle design is not to satisfy the aesthetics of professionals but the public's; this is not an art film but a commercial blockbuster; you need not experts and professors but loyal fans, and seek experts who understand you under market recognition; second, the bottle accompanies the concept; once you've confirmed the design, don't change it casually; the bottle is the company's business card; don't challenge consumers' perception of different packaging for the same product, otherwise, your early investment may be wasted. Here, I strongly agree with Mr. Zhang Yuzheng's in-depth research on packaging; let me share some of his views: Packaging is the only physical carrier linking the product produced by the enterprise to the commodity sold; only when the product packaging design is completed, making it a marketable commodity, does the enterprise's product innovation and R&D work end. In the process of commercial packaging design, six common cognitive misunderstandings often occur: 1. Treating commercial product packaging design as personal expression of aesthetic art. 2. Ignoring product power and brand power in packaging design. 3. Overemphasizing the role of packaging, neglecting the supporting role of overall marketing elements in product sales. 4. Influenced by trends, ignoring the long-term role of packaging in brand building. 5. Lack of a complete packaging workflow, leading to failure in presenting good packaging design solutions. 6. Ignoring the disruptive changes to traditional packaging design principles in the era of internet digital marketing. Quality Two: Shaping and Communicating Health Philosophy The era of "good wine needs no bush" is over. In today's marketing, good products need good promotion. Bottled water companies need to do long-term consumer education, like Nongfu Spring's natural weakly alkaline water, which requires time accumulation. For bottled water, quality needs continuous development. About Taste: Taste for drinking water has always been a paradox. The more mineral elements in water that meets national drinking standards, the more beneficial to health, but the worse the taste. Conversely, the lower the mineral content, the less beneficial, but the taste improves. So, everyone knows: purified water tastes best, mineral water tastes worst. My suggestion is: Without affecting product differentiation, ensure the best possible taste. Mainstream Packaging Around 500ml I think there's a wrong view: decision-makers subjectively think that a little more or less water in a bottle doesn't matter. But it does. Once, I went to Huangshan for tourism. When I reached the summit, I saw a water stall selling 535ml Nongfu Spring sports cap water and 570ml Ganten water. A couple wanted to buy mineral water. When choosing, the woman's reason was straightforward: "The water is so expensive here; at the same 10 yuan price, I'd choose the one with more water. Every extra sip counts." This immediately piqued my interest, so I chatted with the owner. I asked which of the two waters sold better. The owner said: "Ganten's fame isn't as big as Nongfu's, but at the same price, the one with more water sells faster. Even the local brand water, also 10 yuan, but with 600ml, sells out first every day. People who climb to the top are thirsty and tired; who cares about brand? Value for money is most important." The owner said it plainly: when physiological needs are extreme, brand value is greatly discounted, and value for money takes over. Some might say this is a special case, but China has many mountains and even more scenic spots. Details determine success or failure; taking care of all consumers' first impressions is a detail. Finally, I suggest: Consumers are now seeking extreme cost-effectiveness. Water companies should look at the main competitors in terms of capacity and consider offering a bit more capacity. Product, place, price, and promotion constitute the classic 4P marketing theory. Price is relative. For mineral water, the price per milliliter plus consumer promotions constitutes what people call value for money, which is one of the driving forces for purchase and cannot be ignored.