---
title: "Niu Gensheng Sells Premium Water: What's His Game? A Market Overview of China's Premium Water Sector"
description: "More and more companies are entering the premium water market, and the question is why. The article reviews the market, highlighting the mysterious 5100 Tibet Water and Niu Gensheng's new role as chief strategic advisor, while analyzing key players like Evian, Perrier, VOSS, and others."
author: "老纳"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-08-21"
language: "en"
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markdown: "https://xinjignxiao.com/en/articles/niu-gensheng-sells-premium-water-what-s-his-game-a-market-overview-of-ch-811f5d25.md"
original_source: "https://mp.weixin.qq.com/s/EZ_7x1vyBg26FqOf1HFpLA"
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---

# Niu Gensheng Sells Premium Water: What's His Game? A Market Overview of China's Premium Water Sector

> More and more companies are entering the premium water market, and the question is why. The article reviews the market, highlighting the mysterious 5100 Tibet Water and Niu Gensheng's new role as chief strategic advisor, while analyzing key players like Evian, Perrier, VOSS, and others.

More and more companies are entering the premium water market, and the question is why.

**The Mysterious 5100**
Niu Gensheng has made headlines again, but as usual, he remains low-key, with only a brief statement of a few dozen characters and no further details. This is consistent with his style since stepping down from Mengniu in 2011. This prodigiously talented man suddenly disappeared.

Though he is no longer in the arena, his legend persists. Many still await his comeback with a pilgrim's mindset. Every time news of him surfaces, people get excited for a few days, but then, like a stone thrown into a lake, it leaves ripples and returns to calm. This was the case earlier this year when Niu Gensheng's name reappeared on the list of Mengniu's Strategic Development Committee.

Long-suppressed by Yili, many old Mengniu hands felt that the "Great Sage" had finally returned. Unfortunately, after that, Old Niu went silent again. When he next appeared, it was as the chief strategic advisor for Tibet Water Resources.

This time, Old Niu has finally stepped out of the dairy industry and into the premium water sector. It seems he has given this careful thought. Old Niu founded Mengniu in 1999, listed it in 2004, and by 2006, Mengniu had fully surpassed Yili. Then in 2011, Niu Gensheng left Mengniu.

From founding Mengniu to surpassing Yili, Old Niu took seven years. It has now been six years since Niu Gensheng left Mengniu. During these six years, everyone hoped Niu Gensheng would create another enterprise to rival Yili and Mengniu, forming a tripartite balance. Unfortunately, although rumors suggest Modern Dairy or Shengmu are behind Old Niu's operations, he has never truly confirmed this, and the performance of these two companies has not been ideal.

It's not that Old Niu's charm has faded or his thinking is outdated; it's that the times have changed. The dairy industry structure has solidified, making it extremely difficult for anyone to break it.

Looking across the entire FMCG industry, the only sector still in the high-growth stage like the dairy industry in 1999 is premium water. Although it doesn't match the several-fold growth of dairy in 1999, the annual growth rate of 27% and the vast market demand provide ample space for Old Niu to maneuver.

Tibet Water Resources has long been criticized for relying on group purchases from China Railway (Tie Zong) and lacking real market sales. When high-speed rail stopped purchasing from Tibet Water Resources, Yihai Kerry (the parent company of Arawana) transferred its shares in Tibet Water Resources at a very low price.

When a wall is about to collapse, everyone gives it a push; when a drum is broken, everyone beats it. When everyone thought 5100 would only live in the memories of high-speed rail tickets, Tibet Water Resources quietly completed its transformation and layout, and hired Niu Gensheng to endorse it. It exudes the spirit of "The sons of Jiangdong are many and brave; a comeback is not impossible."

In the past two years, the FMCG industry has been "sliding," but premium water has emerged one after another, with companies scrambling for territory. A storm of premium water is about to hit. Let's take stock of the premium water products from various companies and their market strengths and weaknesses.

**Evian: Fallen from Grace**
For the past decade, Evian was the only representative of China's premium water market. Once, a fashionable woman pulling a bottle of Chanel perfume and a small bottle of Evian mineral water from her Gucci bag was the epitome of elegance and luxury that many aspired to.

In an era when Wahaha and Master Kong sold for one yuan, Evian was already priced at around 20 yuan, and it sold remarkably well, firmly holding the top position in China's premium water market.

However, over time, especially with the spread of the internet and consumers' increased exposure to foreign travel, a fact emerged: Evian's price abroad was lower than that of sodas like Fanta, and its status was almost equivalent to Master Kong's blue-bottled water.

This infuriated Chinese consumers. They realized that this low-end water, which was not even popular abroad, was being sold at a gold-like price in China. Consequently, more and more exposés about Evian appeared online. Evian had to lower its stance and began product placements in TV dramas, such as Andy in "Ode to Joy," who always drank Evian. But Andy's character doesn't seem as wealthy as He Han in "The First Half of My Life."

Currently, Evian's small plastic bottle packaging is priced below 4 yuan, while the glass bottle version remains around 16 yuan.

**Advantages:** The first brand in China's premium water market, pioneering the glass-bottled water era. Currently focusing on placements in fashion dramas.
**Disadvantages:** Low overseas pricing affects its image. Market operations still rely on distributor and master agent systems, with slow market response and weak team execution.
**Prospects:**
**Commentary:** A lean camel is still bigger than a horse; it will be difficult for any water to shake Evian's position in the short term.

**Perrier: The Rising Star**
France's Perrier sparkling water still lacks a proper Chinese translation, but consumers know that when you say "Paris Water" (Bali Shui), you mean Perrier.

Inspired by Evian, Perrier quickly rose through national master agents and e-commerce platforms. Through various trendy plays by fashion influencers, Perrier soon became the most fashionable drink among young people. Also from France, unlike Evian, Perrier's price in China is not much different from other countries, treating consumers more sincerely. It doesn't give the feeling of "Chinese consumers are rich but stupid," which is discriminatory.

Perrier uses green glass bottle packaging and contains natural bubbles. While Evian simply claims its source is the French Alps, Perrier emphasizes the taste of natural sparkling water and its benefits to consumers.

Emerging e-commerce platforms and young people's pursuit of uniqueness have both contributed to Perrier's sales.

Perhaps seeing the success of glass-bottled Perrier, Nestlé launched a green plastic-bottled version. The original glass bottles are still independently operated by Chinese distributors, while the plastic bottles are handled by Nestlé's sales team to open the market through price advantages.

Similar is another Nestlé premium water, San Pellegrino from Italy. With its softer taste, it appears more in dining venues. In comparison, Perrier has broader channels.

330ml glass bottle sells for 10 yuan, plastic bottle for 7 yuan.

**Advantages:** Loved by emerging consumers, noble origin, strong marketing team from Nestlé.
**Disadvantages:** The bubbles are both an advantage and a disadvantage; many people don't like the taste of sparkling water. Consumers often confuse sparkling water with soda water, thinking Perrier isn't worth the price.
**Prospects:**
**Commentary:** The future is bright, depending on the cooperative development between distributors and Nestlé.

**VOSS: A Pearl with Tears**
VOSS is another premium sparkling water, sourced from Norway, and is quite famous internationally. Its packaging resembles a perfume bottle. It was the designated water for the 2009 Davos Forum, which attracted consumer attention.

In 2016, it was acquired by Reignwood Group. However, Reignwood's main focus was on the Red Bull trademark dispute, so VOSS received insufficient attention. There were rumors that in October 2017, Red Bull would develop VOSS more aggressively.

Capri-Sun, VOSS, and VITA COCO are all attempts by Reignwood to diversify beyond Red Bull. These three products have good reputations and sales internationally, but in China, they are still in their infancy.

With high prices and high profits, the distributors used are still Red Bull agents. The company resources allocated to VOSS are even less than those for the new product Zhanma. The translation "Fusi" (VOSS) is definitely problematic; it lacks aesthetic appeal and imagination. When we hear "Yiyun" (Evian), we think of a water source close to the sky, with a sense of mystery; "Perrier" is unknown to Chinese consumers, but it has a pretentious name "Paris Water" that gives a fashionable feel; "Shengbeilu" (San Pellegrino) gives a feeling of holy dew bestowed by a deity. These names are all lofty and ethereal. "Fusi" is awkward to pronounce, sounding like wind escaping through teeth. It already loses in presence.

375ml sells for 15 yuan.

**Advantages:** Reignwood Group has rich operational experience; VOSS is an internationally renowned natural water with exquisite packaging design.
**Disadvantages:** Reignwood is busy with the Red Bull trademark dispute and has no time to spare; the current distributor system is not suitable for such high-end water.
**Prospects:**
**Commentary:** The future is bright, but the path still needs to be found...

**Moyaquan: Unable to Escape Its Identity**
In 2015, Nongfu launched three waters, with Moyaquan being the high-end sparkling water. Zhong Shanshan said he didn't want to see Chinese leaders still drinking plastic-bottled water, so he wanted to produce a glass-bottled water.

Subsequently, Nongfu launched an advertisement searching for Moyaquan. That year, Moyaquan's bottle design won the Platinum Award at the Pentawards competition. Since then, Moyaquan's bottle design has won multiple awards, cementing Nongfu Spring's status as the best advertising company in the FMCG industry.

However, apart from occasional appearances at leader meetings (because many other waters are vying for exposure), Moyaquan is rarely seen elsewhere. The most frustrating part is that searching for "Moyaquan" yields nothing; you have to search for "Nongfu Spring high-end glass-bottled sparkling water" to find it.

It seems Zhong Shanshan has great trust in the Nongfu Spring brand, feeling that whatever Nongfu produces, consumers will buy. But is that the case? Nongfu tells a good story, but consumers still perceive Nongfu as a low-end brand. No matter how good the story, people won't accept that its water can sell for over 25 yuan.

Yes, the bottle design is impressive, but you're selling water, not bottles. People won't buy your water just because of the bottle. "Buying the casket and returning the pearl" (buying the box and returning the pearl) and "putting the cart before the horse" seem apt here. Moyaquan is not a well-known water source; it's just one of many sources in Changbai Mountain. Is it suitable for Nongfu to try to conquer all of FMCG with one brand? Think about it: would any trendy young person feel that drinking Nongfu's premium water is the same as drinking Perrier?

Fusi (VOSS) just has a lisp, but Nongfu has a leak of presence.

350ml glass bottle sells for 28 yuan.

**Advantages:** Beautiful bottle design, Zhong Shanshan tells a good story, Nongfu Spring is the best advertising company in China's FMCG industry.
**Disadvantages:** Cannot escape the endorsement of Nongfu Spring; consumers find it hard to accept "Nongfu" as a high-end brand.
**Prospects:**
**Commentary:** On the high-end road, proceed with caution and cherish the journey.

**Benlaiwang: The Rising Star**
Nongfu Spring has fought Wahaha, defeated Master Kong, and clashed with C'estbon, but suddenly discovered that Ganten has quietly occupied the 3-yuan water segment.

Ganten, regardless of its origin, reputation, or market operations, is far inferior to the industry giants, but with its excellent taste, unique packaging design, and a wave of foreign-flavored advertisements, it quickly secured the 3-yuan water zone, leaving no space for Nongfu's student water.

Currently, Ganten's operations still rely on provincial master agents, which is a rough management style, yet it has achieved such volume. If refined operations are implemented in the future, the consequences are unimaginable. Therefore, Ganten will become Nongfu's biggest rival in the future.

In 2017, Ganten launched Benlaiwang (blairquhan, a translation that makes me think it's from Want Want). The product line includes soda water and mineral water. The soda water uses a gray-black color, giving a cool feel; the mineral water adopts the C'estbon blue style of Ganten.

Compared to Nongfu's premium water, Benlaiwang has made an effort to tell a story, having acquired a European castle. In bottle design, Benlaiwang still lags far behind Nongfu's Moyaquan (in this respect, it's not as good as Ganten's packaging, which completely outshines Nongfu's).

348ml Benlaiwang soda water sells for 10 yuan (JD price), which is relatively affordable.

**Advantages:** More affordable price, good product quality, Ganten's main channel is higher-end, with a dedicated team for operations.
**Disadvantages:** Product design is not outstanding, the name is too rustic and doesn't match its identity.
**Prospects:**
**Commentary:** In the future, Nongfu and Ganten are bound to have a battle...

**Zhenxi Water: Differentiation**
In 2017, at the Spring Sugar Fair, a premium water emerged and caught everyone's attention. Unlike other premium water companies that tell stories or sell bottles, this water relies more on its own superior quality—this is the Zhenxi Water from Han Shui Xi Gu, which leads China's "selenium" water market.

In fact, whether it's the long-established Nongfu or Ganten, everyone's start in China's premium water market is the same; they are all newcomers. The only difference is that Nongfu and Ganten have some recognition in the low-end water market, and their bottle designs are more attractive. That's all.

But they don't have unique selling points, making it impossible to challenge Evian's position. However, Han Shui Xi Gu Zhenxi Water, with its unique selling point of selenium-rich water source, already holds a stronger position than Nongfu and Ganten.

In the past two years, FMCG sales have declined while the water market has risen. The root cause is that people believe FMCG products are unhealthy, and only water is healthy. But currently, waters on the market only quench thirst, and occasionally some claim to have trace elements. But consumers don't know what those trace elements actually do.

But Han Shui Xi Gu Zhenxi Water is different. Consumers know that selenium is a remedy for health preservation, anti-cancer, and anti-diabetes. This water source is incomparable to Nongfu's Moyaquan, Ganten's Benlaiwang, or various foreign waters. Such water sources are rare, and the main one has been secured by Han Shui Xi Gu Zhenxi Water.

Compared to playing with fashion concepts, Han Shui Xi Gu Zhenxi Water targets a consumer group that is successful in their careers, hardworking, and have spending power, rather than those who rely on their parents. Youthful fashion is more about relying on luck, while middle-aged success provides stable and continuous output.

Similarly, in terms of financial and material resources, behind Han Shui Xi Gu Zhenxi Water is Shaanxi Coal and Chemical Industry Group, a Fortune 500 company, with strength no less than Nongfu or Ganten. In their transformation, they place great importance on this quality water.

In our commentary, we've seen that the premium water market has broad prospects and high profits. However, there is no mature system for companies or distributor teams to learn from; everyone is still in the exploratory stage.

To this end, Han Shui Xi Gu Zhenxi Water, in conjunction with New Distribution, has invited industry expert Mr. Li Linchun to hold an online sharing session titled "How Much Would You Spend on Water?" this Thursday (August 24) from 8 PM to 9 PM, to teach distributor teams how to open up the premium water market. Don't miss this great opportunity... Long-press the QR code below to add a friend and be invited to the group.

**About Li Linchun:**
- Researcher at CARD China Agricultural Brand Research Center, Zhejiang University
- Director of Zhejiang Huoshi Brand Design Company
- Vice President of Zhejiang Enterprise Trainer Association
- Specially Appointed Professor for CEO classes at eight major institutions including Tsinghua, Peking, and Zhejiang universities
- Former General Manager of Wahaha Group branch company
- Main research areas: "Sales Channel Development and Management," "Making New Products Bestsellers," "New Trends in Brand Building," "Achieving Annual Sales Targets," and other marketing topics

When adding friends, note "Premium Water Operations."

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