Wahaha has finally begun to change its packaging, launching newly designed products in the golden autumn after over a year of market research and design improvements. Before the product was even available, online reviews were almost unanimously positive, praising the packaging as fashionable, comfortable to hold, and the bottle shape as crystal clear and premium under sunlight.

In recent years, the rise of Kangshifu and Nongfu Spring has posed challenges to Wahaha. Although Wahaha still holds a significant advantage in second- and third-tier markets, competitors such as Kangshifu, Nongfu Spring, Yibao, and Baisuishan have already carved out substantial market share.

Moreover, an increasing number of companies are entering the bottled water market to grab a share. Evergrande Spring Water entered as a dark horse with frequent marketing and market activities, intensifying competition in the bottled water sector. Analysts suggest that Wahaha's packaging change aims to reclaim market share and boost the market share of its purified water.

According to a Wahaha spokesperson, the reasons for changing the purified water packaging are twofold: first, to refresh the brand image and bring new vitality to the product; second, to rebuild the price system with the new product. However, industry insiders believe these two goals hide the operational and performance difficulties of the food giant Wahaha.

The new national standard "Food Safety National Standard for Packaged Drinking Water" (GB19298-2014), implemented from May 25, standardized the naming of packaged water. Except for natural mineral water, which has its own national standard, packaged water on the market is now only classified as either purified drinking water or other drinking water. Other names are no longer allowed. Wahaha's high-end oxygen-rich water, which was heavily promoted, was quickly withdrawn from the market following the policy adjustment.

At the end of last year, Wahaha Group Chairman Zong Qinghou's speech at the company's 2015 sales work conference brought the company's overall operational pressure to light. Zong stated that 2014 was the worst year for sales performance in recent years, with overall sales declining by 7%. Industry analysts noted that while 7% may seem small, for a large food enterprise with revenue around 80 billion yuan, 7% means 5.6 billion yuan, which is not a small amount. Notably, in 2012, Zong set sales targets of 80 billion yuan for 2013 and 100 billion yuan for 2014, but these goals were not achieved. In 2013, Wahaha's revenue was only 78.28 billion yuan, and with a 7% decline, 2014 sales would be 72.8 billion yuan, far from the 100 billion target.

"For Wahaha, which saw a 7% decline in sales last year, this year is crucial. When discussing Wahaha, the general industry assessment is a lack of new star products and aging of original star products. Thus, it is understandable that Wahaha changed the packaging of its purified water, which had been used for many years, to try to compete again with a new image," commented Zhu Danpeng, a researcher at the China Brand Research Institute.

Old Master Zong has finally made a move. Wahaha purified water has changed its packaging, refreshing the visual and revitalizing the brand. But does it really matter?

This move has almost no impact on the industry. Unlike developed countries, China's environmental pollution, especially poor water quality, is a social factor driving the rapid categorization of pre-packaged water. The backward community infrastructure is a prerequisite for the rigid demand for packaged water. Whether purified or mineral, the basic need is to quench thirst. The high similarity at the physical product level pushes competition to the brand level. Large brands leveraging channel advantages and engaging in price wars is not foolish at all.

Historically, Wahaha used emotional marketing with "My Eyes Only You," Robust positioned with rational appeal through "27-layer purification," Nongfu Spring used PR events to pit mineral water against purified water in a textbook marketing case, 5100 tied up with high-speed rail as a major client for group channel sales, Kunlun Shan wisely operated demonstration terminals like airport VIP lounges, and Evergrande Spring Water's massive losses from haphazard marketing taught Xu the tycoon that the water business is deep.

Kangshifu, Wahaha, and Coca-Cola's Ice Dew at 1 yuan per bottle act as industry cleaners, using both brand and channel to sweep away local players and even underground workshops. Brands like Evian, Kunlun Shan, 5100, and Evergrande Spring Water have contributed to leading consumption upgrades, but they are non-mainstream. The 2-3 yuan price range is the mainstream price band for the next five years, with Nongfu Spring, Yibao, and Baisuishan playing the leading roles. Evergrande's high-profile entry and subsequent price cut from 4 yuan to 2.5 yuan was a correct decision.

For consumers who buy small bottles on impulse, roadside shops are the main channel, while KA stores serve as image channels. Channel plus brand is the real king. In FMCG, without volume, where is your status?

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