Evergrande Group
Making a comeback, the bottled water business is once again attracting a great deal of attention in the industry.
In the near future.
Evergrande Group
Board chairman Hui Kayan announced at the group's 2020 results that he has acquired a 49% stake in Evergrande Ice Spring and plans to list it. He revealed that
Evergrande Group
It will diversify its development, aiming to realize the closure of the whole industry chain covering clothing, food, housing, transportation, recreation, travel and entertainment.
2013.
Evergrande Group
First launched the Evergrande Ice Spring, but soon announced its withdrawal, this second return to the bottled water market, mainly because of the real estate business downturn, the new energy vehicle prospects are uncertain, the
Evergrande Group
Need another strategic support business. The early disclosure of the intention to go public also shows Xu's determination this time.
China's food industry analyst Zhu Danpeng believes that "with the price and quality advantages, Evergrande Ice Spring in the mineral water high-end market force, coupled with the channel and quality precipitation in these years, there is an opportunity to occupy a place".
However, compared with the withdrawal, the mineral water market has changed dramatically, from the volume and strength, the survival of Evergrande Ice Spring is not difficult, but in Evian, voss, Nestle, Nongfusanquan and Wahaha and other strengths of the brand in power today, Evergrande Ice Spring in order to achieve great development, I'm afraid that it is not an easy task.
Win the eyeballs, lose the market
Due to the extreme level of confidentiality.
Evergrande Group
The entry into the bottled water market was not known to the outside world until the very end.
November 2013 AFC Champions League final.
Evergrande soccer team
For the first time on behalf of Chinese soccer famous Asian Club Champions Cup, countless on-site audience and fans witnessed Evergrande players chest fluttering "Evergrande Ice Spring" ads, a professional soccer carnival evolved into the Evergrande Ice Spring product promotion meeting. In the press conference after the match, Xu Jiayin announced that Evergrande Group launched the "Evergrande Ice Spring" mineral water brand, formally entered the bottled water market, positioning high-end.
According to the plan, Evergrande Group hopes that bottled water can become another 100 billion business segment in addition to the real estate business, and has formulated a roadmap of 10 billion in the first year and stabilized at 30 billion scale after three years.
However, the Evergrande team's chest advertisement at the AFC Champions League final has sparked a business feud.
At that time, the Evergrande team chest advertisement had belonged to Guangzhou Nissan, Xu Jiayin temporarily broke the contract and replaced Guangzhou Nissan with Evergrande Ice Spring, which triggered public opinion's big denunciation of Xu Jiayin's business integrity.
Perhaps in order to divert the attention of the society, Evergrande Group adopts a high-flying strategy, investing 1.3 billion in advertising in 20 days, laying 200,000 terminals per month, inviting Jackie Chan and Fan Bingbing as spokesmen, and utilizing the resources of Evergrande sports clubs to have Lang Ping, Lippi, and Figo serve as promotion ambassadors.
However, the market ultimately did not embrace this strong newcomer. The year it was listed, Evergrande Ice Spring only sold 1.09 billion, and since then, for 2 consecutive years, the advertising investment has been higher than the revenue. There are reports that Xu Jiayin totaled 6 billion for Evergrande Ice Spring.
After a huge loss of 4 billion dollars, in September 2016, Evergrande Group made a price of 1.8 billion to sell Evergrande Ice Spring at a discount. At that time, Evergrande Group issued an announcement showing that the move was a strategic demand of the company, in order to enable the company to focus on the development of real estate business. However, no matter what is said, the failure of Evergrande Ice Spring is obvious.
Evergrande Ice Spring failure reasons, in addition to the Evergrande overly anxious, the goal is set too high, the main or too much resources invested in the promotion of water and branding, weakened with the construction of direct sales channels is equally important to the construction of direct sales channels.
The distribution channels of bottled water are mainly divided into four types, such as supermarket channels, circulation channels, catering channels and special channels (referring to special consumption scenarios such as high-speed railways, airports and hotels), etc., and the laying of goods is mainly accomplished through dealers, but Evergrande Ice Spring mainly uses the terminal direct channel (with more than 131 cities and more than 200 real estate projects in the country at that time as the direct wholesale points) and the modern channel (supermarkets) and is mainly supplemented by the special channels and dealer channels. channels are supplemented by special access channels and distributor channels. At that time, there were media reports that Evergrande Ice Spring's mineral water direct sales centers located in Evergrande's real estate projects were fast turning into distributors' inquiry hotlines.
And this, there is no successful precedent, on the contrary, Taiji Group has been in too much reliance on direct marketing form of practice "overturn".
In 2015, the transformation of Taiji Group launched "Taiji water, ageless spring, natural alkaline, strontium-rich water" concept of high-end Taiji water, the price of 11.9 yuan a can, the sales channel for the chain of pharmacies and its dealers around the country, but did not get market recognition, the price dropped to 8 yuan, 6 yuan, after the price is still less people ask for. Now, Taiji water sales data no longer appear in the financial report of Taiji Group.
A marketing expert to know food gentleman pointed out that bottled water and residential play is not the same, residential spell is the turnover rate of funds, the earlier the completion of the integrated cost is lower, the more you can seize the market, bottled water need to refine the deep cultivation, channel to mass, do everywhere. With Evergrande's direct sales channel based on the building project, the outlets are extremely limited.
Competition in the bottled water market is fierce, but there is no lack of imagination
In Forbes released the 35th global billionaires list, Nongfushanquan Chairman Zhong G睒睒 ranked 13th with a value of more than 60 billion U.S. dollars, becoming the world's food industry and the world's Chinese "double richest", showing the huge potential of China's bottled water market. In the 2020 results conference, Mr. Zhong furtively said that he will continue to promote the dual-engine development pattern of packaged drinking water and beverages, and continue to improve the household penetration rate of drinking water products.
In fact, despite the fierce competition in China's mineral water market, which is dominated by brands such as Evian, Kunlun Mountain, Jingtian Baishoushan, and Tibet 5100, the industry still has a lot of room for development. Zhu Danpeng believes that, under the background of the prevalence of the health industry, the growth of the mineral water category will be better than other water categories.
The data also shows that between 2014 and 2019, the compound growth rate of bottled water is 10.0%, while natural mineral water is as high as about 18.4%. However, China's per capita consumption of mineral water is one of the lowest in the world, with an annual per capita consumption of only 1.5 liters of mineral water, equivalent to 1% of Italy's per capita consumption level. Therefore, China's mineral water consumption market has huge potential.
It is worth noting that China's bottled water industry has experienced two rounds of consumption upgrading, the first round is the consumption upgrading from other bottled water to pure water, and the second round is the current shift from pure water to natural mineral water.
Evergrande Group
At this time to push the Evergrande Ice Spring, just in time for the second round of consumption upgrade. However, in addition to the existing players, there are other new forces optimistic about the mineral water market.
At the end of 2018, Yili announced an investment of 744 million yuan in a new mineral water project in Changbai Mountain, Jilin, and in 2019, Yili completed the acquisition of a large mineral water company in Arshan, Inner Mongolia, and started the construction of a mineral water project in Antu. Yili now owns its own brand of mineral water, "inikin Yikin", which is aimed at the mid-to-high-end market. Further, Hollidayo will showcase its lava spring mineral water products at the 2020 Expo, sending a strong signal of laying out the mineral water market. According to its introduction, the water source of Hollidayou is taken from the deep lava of Jeju Island, an international rare water source, and the terminal retail price is 4.5 yuan to 5 yuan. Master Kong also intends to create a mineral water brand "cultivation spring" to complement its own product line.
It's not as if Evergrande Ice Spring doesn't have its own advantages over its old and new competitors.
In addition to the Changbaishan water source, the new owner, Evergrande Ice Spring, has not stopped moving forward in these years. It is understood that Evergrande Ice Spring in 2017 through the opening of the construction of the Changbaishan Chinan water plant to expand production capacity, and the launch of the classic series, metasilicicic acid series, and the baby water series; in 2018, the launch of the "low-sodium water series", focusing on the price of 3 yuan of water; in 2019, Evergrande Ice Spring built the third high-specification garden water plant, to launch high-end Mineral water market. After completing this "trilogy", Evergrande Ice Spring has established a full-line product structure from 2 yuan, 3 yuan to high-end in the market.
In terms of owned channel resources, Evergrande Group is richer than before.
In addition to its more than 500 residential projects invested in more than 180 major cities across the country, Hui Kayan has also made a great success in commercial real estate development. Evergrande Commercial Group has formed the three major product lines of Evergrande Center, Evergrande Plaza and Evergrande Life Plaza, and has established the four major brands of Evergrande Department Stores, Evergrande Supermarkets, Evergrande Cinemas, Evergrande Amusement, etc. The Evergrande Ice Fountain is the first commercial real estate development project of Evergrande Commercial Group in China. These create favorable conditions for Evergrande Ice Spring to better reach customers.
Therefore, backed by the volume of Evergrande Group, as well as the ambition of Xu Jiayin, Evergrande Ice Spring is not difficult to survive the competition in the mineral water market, but to become a giant in the industry, the difficulty is not small.
