The water market still has room for growth According to reports: In 2016, China's bottled water market size was 137.9 billion yuan. China's bottled water retail volume reached 42.064 billion liters. In 2017, sales revenue of China's bottled (filled) water manufacturing industry approached 150 billion yuan, with net profits exceeding 16 billion yuan. According to research institutions, in 2018, sales revenue of China's bottled (filled) water manufacturing industry will reach 153.9 billion yuan. By 2020, it will approach 200 billion yuan. In recent years, the retail volume of China's bottled water industry has maintained a growth rate of over 10%. Specifically, in 2017, the retail volume of China's bottled water market exceeded 100 million tons, a year-on-year increase of about 10.95 percentage points. From a retail value perspective: In recent years, the retail value of China's bottled water industry has grown steadily. In 2016, retail value exceeded 150 billion yuan. Over the past five years, the compound annual growth rate of China's bottled water retail value reached 11.1%. The report also inferred that in 2016, China's per capita consumption of bottled water was only 64.2 liters per person, less than half of the global average. Therefore, the prospects for China's bottled water market are very broad. The high-end water market needs genes that can support high-end positioning In the past few years, many companies have tried high-end water, but few have truly succeeded. Personally, I believe that making high-end water requires high-end genes to support value. These genes may include:

  1. Large brand companies, whose years of consumer communication have formed consumer assets that can release some value.
  2. Existing high-end scenario services or products. These scenarios can release some high-end value.
  3. Products that truly have utility with high-end value recognition, obvious effects, etc. But as I said, this is almost difficult.
  4. Attaching to or creating a certain culture. ...... As for so-called scarcity, the "ingredients" in water quality that some companies tout, geographical advantages, etc., many companies have tried these in the past, and I believe the effect is minimal. Yili's water business may differ from ordinary single enterprises I basically agree with Yili's move to enter the water business, mainly based on my recognition of its new strategy and the actions taken based on that strategy: that is, Yili's quality water is one of the implementation plans for its high-quality healthy life strategy. Many people might think that when a company enters the water business, it is targeting the market potential, profit performance, and space for development of the water market. But when a mature giant company launches a new category, and it is not chasing the trend, I believe its thinking is based on strategic implementation:
  5. For large enterprises, water in their product system may be a traffic driver; it is not necessarily for profit.
  6. Water has certain differences in consumption habits from other beverages and foods, and can be complementary.
  7. Strategic products. Coca-Cola, Pepsi, Master Kong, etc., have different strategic significance for water in their enterprises.
  8. Product line supplementation and competitive defense. This is a feasible state in the consumer goods industry. In this regard, the launch of Ice Dew water was once a classic case where Coca-Cola used it to defend against Wahaha's Future Cola product development. But later, Ice Dew, as a "fighting brand," not only did not become a "sacrificial" brand for strategic defense, but also continued to grow and strengthen, which is indeed worth noting and studying. ...... Yili's quality healthy life strategy has not been proposed for many years, and Coca-Cola's launch of Ice Dew water was also shortly after Coca-Cola introduced its "total beverage company" strategy. Launching new products that meet strategic requirements is somewhat different from our way of launching new products on a whim, and it will also give new products more and longer-lasting survival support. Yili's operating system for water should be comprehensive Large enterprises differ from small ones in that their systematic operational capabilities are very strong. Although the launch of a new category product may not necessarily produce explosive results, it is also difficult to end in a disastrous failure. Coca-Cola's Ice Dew water was originally a water brand given to Coca-Cola by COFCO. When Coca-Cola made this water, it was agreed in advance that there would be no marketing budget, but in the end, the product became an Olympic sponsor product, which is a very outstanding performance. Other aspects, such as production construction, brand building, distribution, performance management, policies and promotions, customer channel cooperation, etc., are basically replicable. Now with mobile internet, there is an additional marketing and sales system to support it compared to traditional methods. In addition, including talent, training, regional breakthrough methods, etc., are also basically complete. Some distributors may need to be recruited, but for a big brand, this is not too difficult. However, large enterprises also have new categories that fail miserably Coca-Cola and Procter & Gamble also have many regrettable cases in this regard. For example, Coca-Cola's Sunshine Tea, Boraide functional drinks, Tianyudi water and beverages, etc., although not failures, are no longer promoted much. Lipton also launched bottled tea. Budweiser once wanted to make beverages too. Through practice and contact with these companies, when large companies launch new products, success is due to experience, and failure is also due to the use of experience. They have many products, including absolute big brands, and the sales contribution of big single products is very significant, which causes some companies to find it difficult for new products to stand out when launching them, and sometimes they are buried under big single products. If the company does not pay attention, middle channel dealers and terminals will pay even less attention. Therefore, for large enterprises to succeed with new products, it is recommended to have a brand manager or product manager system, who acts as the "parent" of the new product, nurturing and caring for its growth. Just like a baby's growth, the various supports needed are different from those for strong adults, or even completely different. After growing to a certain consumption and market foundation, it can then enter the group of strong adults. Still be cautious about ultimately turning water into a gift for other products China's purified water bottled products, from the initial terminal retail price of 3 yuan per bottle, have now become a few cents per bottle. Many companies use them as promotional tools, attached gifts, physical objects for maintaining customer relationships, etc. Many distributors also only see them as a better substitute for completing sales. Although water companies ultimately have different purposes, or are evolved by reality, I still hope that China will always have a healthier and more sustainable water industry, rather than just becoming a sales aid for other categories within the company. Source: Food and Beverage Wine (ID: gh_e7b9db5be778) Introduction: Tan Changchun, committed to selling any product as a fast-moving consumer product. General Manager of Huaxia Jishi Marketing Consulting Company, Chief Consultant of the Group, Special Expert Consultant of Kotler Consulting Group, Project Director of TNS Market Research Consulting Company. Founder of the integrated marketing system. Well-known marketing expert and trainer; specially invited lecturer for the China Marketing Director Qualification Certification Exam, and specially invited lecturer for "Frontier Lectures." Weibo: http://weibo.com/1159426107. WeChat public account: chnstone1. China Sales Force: http://t.cn/RtRxd99 Tips will be paid 400-2000 yuan once adopted. China FMCG + Internet Professional New Media Committed to FMCG manufacturers' transformation and upgrading and channel digital solutions