What is the potential for the future development of the drinking water market?

In recent years, with the strengthening of consumers' health needs, drinking water has become the first category of beverages. According to incomplete statistics, the sales of drinking water in 2017 has exceeded 150 billion, and the local brands are competing. The water-filling plant is built in abundance, and the number is amazing. It is mostly in the dairy industry before 2008. However, the drinking water sold by many water companies is still 1 yuan of water, 2 yuan of water and 8-10 yuan of bottled water. Many companies are struggling and their profits are very thin.

Successful water companies rely on scale to make profits, unsuccessful water companies calculate accounts, and look at a bunch of equipment. At present, most of the water companies are struggling to live. The water-capped phoenix horns, which have a revenue of more than 10 million yuan a year, are mostly in the millions of miles, which is very difficult.

On the other hand, the brands such as Yibao, Farmer, and Baishenshan have grown rapidly. For example, in 2016, China Resources Yibao achieved revenue of 9.347 billion yuan, total profit of 606 million yuan, and total tax payment of 1.040 billion yuan. The main income of China Resources Yibao comes from Yibao Packaging Water. According to Nielsen statistics, in 2016, the market share of Yibao Packaging Water increased by 2% compared with 2016, ranking second in the market, and its share increment ranked first in the packaging water industry. In the past ten years, Yibao achieved less than 1 billion. To the tens of billions of leap.

The decade of great development of the drinking water market has passed. In the next decade, is there any chance for large-scale development of drinking water? The author believes that the next decade will still be the era of great development of the drinking water market, and promote The driving force behind the rapid development of the drinking water market is market segmentation.

The dairy industry is the market segment after the melamine incident in 2008. For example, children's growth of milk, middle-aged and high-calcium milk, and high-end milk have enabled the entire dairy industry to develop rapidly, from the industry's total revenue of 143 billion yuan in 2008 to 2016. In the whole year, the total revenue of the industry was 350.4 billion yuan, more than doubled in 9 years. There are world-class enterprises in the industry, and there are also many regional dairy enterprises scattered around the country. The annual income of almost every dairy enterprise is More than 100 million yuan.

In what ways will the market segmentation of the drinking water market be an opportunity? The author believes that there are two aspects:

First, high-end drinking water

High-end drinking water with a price of more than 5 yuan has always been the focus of major brands. Domestic high-end drinking water is basically monopolized by foreign brands. At present, the domestic high-end water brand has a small share, accounting for only 10% to 15%, but According to Nielsen's data, the growth rate of high-end water in the Chinese market is currently as high as 46%-50%. According to conservative estimates, the capacity of China's high-end water market will not be less than 10 billion yuan in the next few years, which is an attractive cake.

Coca-Cola launched Valser's high-end bottled water at Tmall, holding the label "Swiss imported". It is understood that the water source of Valser comes from the surface water after the melting of the Alps. In addition, Baisuishan Company also launched the high-end water of “Blairquhan”, and Nongfu Spring and Huabin Group are closely watching the high-end drinking water market.

Therefore, the author believes that the high-end drinking water market will enter the era of competition. With the frequent contact of consumers with high-end drinking water, this potential consumer demand will be induced, and the domestic high-end water consumer groups have gradually formed. The high-end drinking water market will have a blowout that will drive the overall development of the drinking water market.

Second, the specific population of drinking water

Drinking water for specific populations is the focus of the drinking water market segmentation. According to different groups, the introduction of different packaging drinking water is the goal of water companies. At present, there are special packaging drinking waters for pregnant women, children and other people. In the future, there will be different types of water that meet the needs of different people, such as baby water, milk powder brewing water, tea brewing, and women's special water. Nongfu Spring has introduced drinking water for infants and toddlers, which is already leading the subdivision of the drinking water market.

Infants and young children are the treasures of the family. Consumers are reluctant to eat and drink, and they have to give their children food and drink. Therefore, although the price of infant water is several times that of ordinary drinking water, there is still a huge market. From 2015, the growth rate of baby water is very high. Significantly, far more than the growth rate of ordinary drinking water, many water companies are also entering this market, such as the world essence, Hanshui Selenium Valley and other brands, have launched their own infants, pregnant women special water, so the author believes that the country is fully After the second child is born, the emergence of China's birth peak will promote the market development of pregnant women's water and baby water, so everyone should pay more attention.

In summary, high-end drinking water and drinking water for specific populations are the focus of the drinking water market segment, which is bound to promote the development of drinking water in the next few years, and will quickly make the drinking water market exceed the market scale of 200 billion.

Therefore, the drinking water market is the hottest beverage market in the present and the future. Whether water companies can get a share in this market depends on whether the water enterprises can seize the huge business opportunities in this market and do their own strategic planning. . The author also hopes that our water enterprises will produce more quality products, and firmly grasp the blue ocean in the drinking water market, and stay away from the 1-2 yuan Red Sea area, becoming the backbone of the development of the industry.

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