Evergrande (name)
The Group's reappearance in the bottled water sector is notable in the industry.
Recently, Hui Kayan, chairman of the board of Evergrande Group, announced at the annual results conference that he had bought back 49% of the equity of Evergrande Ice Spring and planned to list the company. He revealed that Evergrande Group will diversify its development, aiming to realize a fully closed industry chain of clothing, food, housing, transportation, recreation, travel and entertainment.
In 2013, Evergrande Group first launched Evergrande Ice Spring, but due to poor performance in less than three years, it withdrew from the market. By returning to the bottled water market this time, Evergrande Group intends to seek a strategic support business other than real estate. At the same time, the early disclosure of the intention to go public shows the determination of Xu Jiayin.
China's food industry analyst Zhu Danpeng believes that "with price and quality advantages, Evergrande Ice Spring is expected to occupy a place in the mineral water market."
However, compared with the time of withdrawal, the mineral water market has changed dramatically. Although Evergrande Ice Spring is not weak in scale and strength, but the face of Evian, voss, Nestle, Nongfusanquan and Wahaha and other strong rivals, Evergrande Ice Spring to achieve large-scale development, fear is not easy.
The reappearance of Evergrande Ice Spring earned a lot of eyeballs, but failed to win the market.
Because of the secrecy work to the extreme, Evergrande entered the bottled water market news at the last minute to the outside world.
In November 2013 AFC Champions League final, Evergrande soccer team for the first time on behalf of Chinese soccer known as the Asian Club Champions League, countless on-site audience and fans witnessed Evergrande players chest fluttering "Evergrande Ice Spring" advertisement, a professional soccer carnival has evolved into the Evergrande Ice Spring product promotion meeting.
According to the plan, Evergrande Group hopes that bottled water can become another 100 billion affairs segment outside the real estate affairs, and has formulated a roadmap of 10 billion in the first year and stabilized at 30 billion scale after 3 years.
However, the chest advertisement of Evergrande's team at the AFC Champions League final has sparked a commercial controversy.
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 advertisements in 20 days, laying 200,000 terminals per month, inviting Jackie Chan and Fan Bingbing for endorsement, and utilizing the resources of Evergrande Sports Club to make Lang Ping, Lippi and Figo serve as the promotion ambassadors.
However, the market did not accept this strong new army after all. Listed that year, Evergrande Ice Spring only sold 1.09 billion, and since then two years are advertising investment is higher than revenue. There are reports that Xu Jiayin totaled 6 billion for the Evergrande Ice Spring.
After a huge loss of $4 billion, in September 2016, Evergrande Group sold Evergrande Ice Spring at a low price of $1.8 billion. At that time, Evergrande Group made an announcement that the move was a strategic need of the company, in order to enable the company to focus on the development of real estate affairs. However, no matter what the rhetoric, 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 into the source of publicity and branding, weakened with the first two with the same as the core link of the competition in the bottled water direct sales channel construction.
The core channels of bottled water mainly include four kinds of channels, such as supermarket channels, distribution channels, catering channels and special channels (referring to specific consumption scenarios such as high-speed railways, airports and hotels, etc.), etc., and the laying of goods is mainly accomplished through distributors, but Evergrande Ice Spring mainly focuses on the terminal direct channels (with its more than 131 cities and more than 200 real estate projects nationwide at that time as the direct wholesale points) and modern channels (supermarkets), and is supplemented by the special channels and distributor channels. channels are supplemented.
At that time, there were media reports that Evergrande Ice Spring's mineral water direct sales center in Evergrande's building was fast becoming a distributor's inquiry hotline.
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 spelling 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 is the demand for refinement of the deep plowing, channels to the public, 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 still room for imagination
In the Forbes released the 35th global billionaires list, Nongfushanquan Chairman Zhong G睒睒ranked 13th with more than 60 billion U.S. dollars in value, becoming the global food industry and the global Chinese "double richest", showing China's bottled water market, the effect of seeking blessings. And Zhong Glittering said in the 2020 results conference, the follow-up will insist on promoting 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, the market is occupied by Evian, Kunlun Mountain, Jingtian Baotianshan, Tibet 5100, etc., but the industry still has a lot of room for development. Zhu Danpeng believes that the background of the prevalence of health careers, the growth of the mineral water category will be better than other water categories.
The data also shows that during 2014-2019, 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 international arena, with an annual per capita consumption of mineral water of only 1.5 liters, equivalent to 1% of Italy's per capita consumption level. Therefore, China's mineral water consumption market has great potential.
It is worth noting that China's bottled water industry has experienced two rounds of consumption upgrading, the first round is from other bottled water to pure water consumption upgrading, the second round is now underway from pure water to natural mineral water transformation. Evergrande Group pushed the Evergrande Ice Spring at this time, just in time for the second round of consumption upgrade. However, optimistic about the mineral water market is not only the existing players, there are other new forces.
At the end of 2018, Yili announced that it had invested 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 water source of Changbaishan, Evergrande Ice Spring has not stopped moving forward in these years after the change of owner. According to the knowledge of the food gentleman, Evergrande Bingspring expanded its production capacity by opening the Changbaishan Chinan water plant in 2017, and launched the classic series, the metasilicic acid series and the baby water series; in 2018, it also launched the "low-sodium water series", which mainly focuses on the price band of 3 yuan of water; in 2019, Evergrande Bingspring built the third high-specification garden water plant, and made a push into the high-end mineral water market. High-end mineral water market. After completing this "three-step process", Evergrande Ice Spring has established a full-line product structure in the market from 2 yuan, 3 yuan to high-end.
In terms of owned channel resources, Evergrande Group is richer than ever.
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 three major product lines, namely Evergrande Center, Evergrande Plaza and Evergrande Life Plaza, and has established four major brands of Evergrande Department Stores, Evergrande Supermarkets, Evergrande Cinemas, Evergrande Amusement Parks, etc. The Evergrande Ice Fountains have created a good environment for customers to better reach the customers. 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 in the mineral water market, but it is not difficult to become a giant in the industry.
