After the end of the 1.0 era of domestic high-end water competition, Tibet Water Resources has been making frequent moves, sponsoring Liverpool FC, partnering with Qingdao Laoshan, and expanding its product line to comprehensively cover the market. Facing pressure from imported products that tout foreign water sources and strong positioning by domestic brands, Tibet Water Resources has brought in Niu Gensheng to endorse its counterattack in the high-end water sector. Channels: Bundling Special Channels In early August, Tibet Water Resources officially launched a strategic cooperation with Hehe Zhijia and announced that Niu Gensheng would officially become the chief strategic advisor of Tibet Water Resources. Niu Gensheng also personally attended the strategic launch meeting that day. Since 2017, the Hehe Zhijia team has been engaged in strategic cooperation with Tibet Water Resources. Through the strategic cooperation meeting, Hehe Zhijia will serve as the sole operator in the Chinese market for the 5100 Blue series and Gesang Spring products under the 5100 brand, and will be responsible for the market promotion and marketing tasks for products above 5100. The introduction of Niu Gensheng as a strategic advisor may be due to his industry authority and experience in operating FMCG products. However, dairy products and water are two different categories that require different operational approaches, making it difficult to judge how much of a role Niu Gensheng can play for Tibet Water Resources. Unlike traditional drinking water companies, Tibet Water Resources' layout focuses more on railways and gas stations. According to Tibet Water Resources' announcements, the company continues to cooperate with Air China, Hainan Airlines, and other airlines this year, distributing its flagship product, bottled 5100 glacier water, on some flights. It also launched a new round of cooperation with China Railway to sell its new product Gesang Spring in the railway system. The gas station channel, which Kunlun Shan previously focused on, is also valued by Tibet Water Resources. Tibet Water Resources' products have fully covered more than 20,000 Sinopec gas station outlets and will enter Sinopec convenience stores in 10 provinces and cities. Last year, through strategic partners and retail channels including supermarkets, convenience stores, hotels, cinema chains, airports, e-commerce platforms, restaurants, and health and entertainment stores, Tibet Water Resources' water products were sold in mainland China and Hong Kong. Marketing expert Lu Shengzhen said, "This is a bundled sales channel, mainly relying on industry giants like China Railway and Sinopec to distribute its products. The advantage of this channel is obvious: once the upstream decision-making resources are connected, all downstream channels will be covered extensively. Compared with traditional channels, both time costs and business costs will be significantly reduced. This type of channel is a bulk commodity cooperation, and both parties are likely to form efficient settlements in terms of funds, which is conducive to Tibet Water Resources' rapid capital recovery. However, it sometimes carries non-market factors, and these channels are state-owned, with policy dividends. Once policy dividends are restricted, the market will shrink rapidly, and it will be difficult to transform." Products: Sticking to the High-End Product Line Tibet Water Resources' high-end products, represented by 5100 glacier water, were once extremely popular and engaged in the first wave of domestic high-end water competition with Kunlun Shan, Baishishan, and Evergrande Spring. Now, some other brands have cut prices, some have been sold, while 5100 glacier water still supports the market and has launched multiple new products in an attempt to achieve comprehensive coverage. According to the financial report released by Tibet Water Resources, the company launched the mid-range acquisition of Gesang Spring, acquiring slightly more than 50% of the equity of Norwegian premium bottled water VOSS. Through this transaction, Reignwood Group can extend its FMCG products to China's high-end water market. In the view of industry insiders, Tibet Water Resources' comprehensive layout is more about sharing the operational risks brought by high-end water. Facing more and more high-end water products appearing on the market, touting foreign water sources has become a new battlefield for enterprises, while 5100 glacier water, which touts the Tibetan water source, has become a thing of the past in the previous domestic high-end water market competition, and consumer attention is relatively low. Therefore, the comprehensive layout is more about hoping that products will not remain at the top level, and also helps to root the product impression in consumers' minds. Beijing Business Today reporters contacted Tibet Water Resources, but as of press time, no response had been received. Strategy: Seeking 'Partners' Everywhere Since the 'special supply' channel was cut off, Tibet Water Resources' revenue increased from 773 million yuan to 832 million yuan, a year-on-year increase of 8%, but net profit fell from 343 million yuan to 280 million yuan, a year-on-year decline of 19%. Last year, Tibet Water Resources' water business segment achieved revenue of 484 million yuan, a year-on-year increase of 5% and 10%, while sales of 5100 glacier water fell by 20%. At the same time, Tibet Water Resources began its path of cooperation. From Sinopec to Laoshan Mineral Water to Liverpool, Tibet Water Resources has cooperated with multiple enterprises, attempting to bundle cooperation for mutual survival. Last year, the joint venture developed by Tibet Water Resources and Sinopec's sales company, Tibet Plateau Natural Water Co., Ltd., launched the co-branded product Yijie Zhuomaquan. As the bottom product in Tibet Water Resources' pyramid matrix, Yijie Zhuomaquan also relies on Sinopec's powerful gas station network for sales. Last year, the cooperation between Qingdao Laoshan and Tibet Water Resources also attracted much attention. Qingdao Laoshan announced during its 111th anniversary celebration that it had signed a cooperation agreement with Tibet 5100. It is understood that the cooperation between the two parties is likely to focus on three aspects: sharing water sources, sharing trademarks, and jointly launching new products. In this regard, industry evaluations are mixed. Some believe that Tibet 5100 has good operational experience in the first-tier market, while Laoshan has a solid consumer base locally, so the cooperation between the two is promising. However, some industry insiders pointed out that bundling water sources and trademarks may lead to a more chaotic development path. For two companies that do not yet hold an absolute advantage in the industry, the issue of how to integrate remains to be resolved. The cooperation with Liverpool is seen by the industry as the 'old routine' of drinking water companies sponsoring sports events. In July, the 2017 Premier League Asia Cup held in Hong Kong concluded successfully. At the same time, Liverpool FC announced a cooperation agreement with Tibet Water Resources, making Tibet Water Resources Co., Ltd. the official mineral water partner of Liverpool in China. In fact, this is not the first time a drinking water company has sponsored a sports event. Previously, Baishishan announced that it would become the global top sponsor of Italian giants Juventus, with a three-year cooperation. Juventus will set up dedicated platforms or venues for Baishishan, such as TV broadcasts, stadium advertising screens, and player locker rooms, to combine Baishishan's international brand image with Juventus players. Lu Shengzhen believes that Tibet 5100 has good brand and cultural connotations. When other water brands are engaged in price wars, as long as it does not fall into excessive price wars, it has some living space. Tibet Water Resources' market should not be limited to those special monopoly channels. If it can accurately enter some hypermarkets and convenience stores, it can gain sufficient market share. The key core is whether Tibet Water Resources wants immediate results or a lasting market. -END-