In May, Evergrande Bingquan, a well-known brand in China’s drinking water market, launched a new natural metasilicic acid health-grade “deep mineral spring”, which fully released the “millet effect” with the price strategy of 2 yuan per bottle (500ml), completely changed the market pattern of high-end and high-level natural mineral water due to its rich natural minerals and nutritional value, and overturned the consumption pattern of natural mineral water, Let ordinary people enjoy the quality and health of natural mineral water only at the price of purified water.
Hengda ice spring deep mineral spring health category strategy:
natural mineral water highlights core competitiveness
Purified water, natural water and mineral water are the three major categories covering China’s bottled drinking water market. According to the statistics of terminal retail sales in 2021, the proportion of drinking purified water, natural water and natural mineral water is 60.44%, 18.44% and 7.49% respectively. Obviously, the current market share of natural mineral water is the lowest, but the strong healthy consumption demand makes it obtain greater market development potential and broader prospects than the first two. Evergrande Bingquan deep mineral spring locks in the category of natural mineral water to highlight its core competitiveness.
From the perspective of the preciousness of water sources, purified water is purified tap water, while natural water is reservoir water from mountains, rivers, lakes and other places on the earth’s surface. They come from a wide range of sources. However, natural mineral water is listed as a “liquid mineral”, which, together with solid minerals such as gold and silver, is a key protected resource strictly controlled by the state and needs to be developed as a mineral resource. Natural mineral water resources are distributed by mountains and extracted from underground rock fissures, which are extremely precious. The total number of mineral water sources in China is only 1160, including 134 national water sources. Evergrande Bingquan deep mineral spring can focus on the category of natural mineral water by virtue of the layout of high-quality water sources such as Jilin Changbai Mountain Tourism Co.Ltd(603099) , Jiangxi Jinggangshan and Hubei Shennongjia. The unique resource advantage has won the competitive advantage for Evergrande Bingquan brand and demonstrated the value of the brand in China’s bottled drinking water market.
From the nutritional point of view of water quality, purified water does not contain any nutritional minerals, while natural water will be polluted by acid rain, pesticides, organic matter of animals and plants and other substances, which need to be deeply processed. Natural mineral water is a high-quality water source, rich in potassium, sodium, calcium, magnesium, carbonic acid, silicic acid, strontium, zinc, lithium, iodine, selenium, bromine and other mineral elements required by the human body. It has nutritional value that pure water and natural water do not have. From the perspective of government supervision, the Ministry of natural resources directly controls the national mandatory implementation standard GB8537 for drinking natural mineral water, so as to ensure that consumers can drink natural, safe, nutritious and healthy high-quality natural mineral water. The nutritional quality of Evergrande Bingquan deep ploughing natural mineral water demonstrates its high-quality, pure natural, nutritious and healthy product power.
In terms of mining threshold and difficulty, there is no need to obtain special qualification for the production and processing of purified water and natural water, and the market access threshold is very low. However, water enterprises must have water sources to enter the mineral water market, and the threshold for water source exploitation of natural mineral water is very high. Only water enterprises with mining license have the right to exploit water sources, which also means the exclusive right to mineral resources. To obtain the mining license, water enterprises need to go through the whole process of bidding, auction, listing, dynamic observation, water quality analysis, expert review, reserve assessment, development and utilization scheme, natural disaster assessment, geological environmental assessment and restoration and treatment, plant construction environmental assessment, water resources certification, water intake license, etc., and obtain multiple audits and approvals from land, water affairs, environmental protection and other departments for nearly five years. Evergrande Bingquan deep mineral spring has stepped into the high threshold of natural mineral water, representing the brand’s strong voice in the market.
The natural mineral water category strategy of Evergrande Bingquan deep mineral spring focuses on the market core competitiveness constructed by product power, brand value and brand voice.
2 yuan / 500ml pricing strategy to release the “millet effect”:
Evergrande ice spring deep mineral spring promotes the popularization of natural mineral water
The reason why natural mineral water rich in nutritional value and beneficial to human health has the lowest market share among all bottled drinking water categories is because of its high cost and high price. Therefore, it also directly raises the consumption threshold of residents.
As a “liquid mineral”, the state requires environmental protection management of mineral water. In the process of using water sources, water enterprises need to pay water fees, mineral resources fees, mineral resources tax, land acquisition fees, well drilling fees, water source land protection fees and other fees. At the same time, the acquisition of the “mining license” of water source, the requirements for the progressiveness of production equipment in the process of water source exploitation, processing and packaging, and the transportation costs from the origin of water source to the regional markets have all led to the average price of natural mineral water at a high level of more than 3 yuan /500ml. Compared with the low-end drinking purified water, the average price is about 1.5 yuan /500ml, and the price of natural water is between drinking purified water and natural mineral water.
If the consumption is based on the medical recommended drinking amount of 3 liters of water per capita per day, the consumption of drinking water alone is nearly 1000 yuan per month. The high price of natural mineral water makes ordinary consumers deeply unable to afford it, so they will choose to buy purified water for daily instant drinking.
In order to solve the contradiction between the high demand for healthy drinking water and the low consumption of natural mineral water, Evergrande ice spring has reduced the dimension and hit the market by virtue of its quantitative advantage in high-quality water sources, the market appeal of the brand precipitated for many years and its strong voice in mineral water mining. Once the new outfit of deep mineral spring was put on the market, it launched the price strategy of 2 yuan / 500ml for cost performance, shouted the marketing slogan of “2 yuan water, I drink real mineral spring”, and provided healthy quality metasilicic acid pure natural mineral water according to the price of purified water.
Deep mineral spring is metasilicic acid mineral water. The content of metasilicic acid is better than the national standard and is easy to be absorbed by the human body. It can effectively maintain the electrolyte balance and physiological function of the human body. It plays a positive role in restoring the elasticity of human blood vessels and promoting bone development. From the water source 160 meters below the underground rock layer, after tens of thousands of years of natural weathering, circulation, adsorption and leaching of underground deep granite, it contains more than 20 kinds of mineral elements beneficial to human health, such as metasilicic acid, strontium, potassium, magnesium, calcium and sodium. The mineral content is balanced. It is naturally weak alkaline water with soft and sweet taste.
With the healthy and high quality of metasilicic acid natural mineral water and the price of 2 yuan / 500ml, Shenzhen mineral water has created a “millet” model of the mineral water industry, fully released the “millet effect” of cost performance to the consumer market, and led the mineral water industry to a successful break. For consumers, it also costs 2 yuan. Why not buy natural mineral water to drink?
Evergrande Bingquan’s new listed deep mineral spring continues to make great efforts in natural mineral water, which not only captures the trend of national health, but also highlights the core competitiveness of the brand based on the natural rarity of its water source and the unique and extremely high market access threshold of its category, so as to successfully occupy the leading brand position leading the successful breakthrough of the industry in the high growth outlet of the drinking water market. At the same time, the “millet effect” of the price of Evergrande Bingquan deep mineral spring at 2 yuan / 500ml has not only created a history of subverting the competition pattern of the whole mineral water industry, greatly promoted the comprehensive popularization of natural mineral water products in the drinking water market, brought the rapid growth momentum of mineral water products, but also completely subverted the consumption pattern of mineral water and the consumption thinking pattern of the market, and played a positive role in the promotion and popularization of national healthy lifestyle.
