Volume 7, Section 120, Giving Back to Hometown
With the competition among the mineral water market, many companies in their previous lives still appeared as promised. In addition to Yibao, they have been staring at the natural hall from the beginning, such as LeBao, Wahaha, and Nongfu Spring have also risen rapidly. The first two are mainly pure water, while Nongfu Spring is mainly natural mineral water.
It is particularly worth mentioning that Nongfu Spring. After becoming successful in health care products, Yangshengtang began to enter the water industry market and made Nongfu Spring a hit in a very short period of time. It quickly became the four major rivals of Nature Hall together with Yibao, Lebai and Wahaha.
The current mineral water market is of course different from previous lives. Nature Tang firmly controls the bottled water market to nearly 35%, Yibao accounts for about 16%, Lebai accounts for 12%, Wahaha 11%, Nongfu Spring has gained a 10% market share in just two years, and seeing its momentum is booming, it is very stance to surpass Lebai and Wahaha, while other local brands only account for about 15% of the market.
In the barreled water market, Nature Hall focuses on first- and second-tier cities. Of course, in Hanchuan, Jiazhou and the southwest and northwest areas, Nature Hall still has an absolute advantage. It is about 25% of the national barreled water market. It is also the only company that has barreled water supply capacity nationwide, and the remaining 75% of the market is basically occupied by local brands.
However, although LeBay does not have an advantage in the bottled water market, it has entered the bottled water market since 1998. It is said that it is also in contact with French Danone, intending to cooperate with French food giants to enter the Chinese market. In Sha Zhengyang's impression, it seems to be a little earlier than in his previous life.
In recent years, in order to ensure its leading position in the water market, Nature Hall has invested a lot. In seven areas, southwest, northeast, northeast, north China, east China, central China and south China, twelve mineral water production bases have been built and under construction. With this huge network, Nature Hall has become the only enterprise that can supply barreled water nationwide.
Of course, this can cover the whole country, but does not mean that the needs of the barreled water market are met throughout the country. In fact, it is impossible to do so, especially in Northwest and North China. Many of them can only occupy the barreled water market in major cities, while others can only give up giving it to local brands.
However, Gao Baishan still felt the competitive pressure from competitors from all sides. Nongfu Spring on bottled water, LeBay in bottled water, and it is estimated that several other companies will start to make efforts on bottled water soon, which means that in every field, Nature Hall will encounter more and more challenges from opponents with increasingly strong strength.
This market itself is sailing against the current, and if you don’t advance, you will retreat. Therefore, Gao Baishan dare not relax at all and strives to break through the current situation.
Sha Zhengyang’s advice to him is to expand into segmented and high-end markets while ensuring the current overall situation.
Gao Baishan accepted this suggestion and began to establish the "Kunlun Bulao Spring" in Qinghai, a thousand-year-old glacial mineral water, as one of the first high-end brands of the Natural Hall.
Production has begun and has begun to enter the high-end markets in Hong Kong, Macau, Beijing, Tianjin, Shanghai, Shenzhen, and Guangzhou and other places, and is expected to enter the high-end markets in major cities across the country before May 1999.
However, according to Sha Zhengyang's advice to Gao Baishan, "Kunlun Bu Laoquan" should firmly defend and maintain its high-end image, with the price not low, and the output should not be too large. Even if some profit can be sacrificed, it must maintain its mysterious, noble and scarce position.
In a sense, "Kunlun Bu Laoquan" is more like Guojiao 1949 in the oriental red wine industry. It has always been in short supply and the price will only become more and more expensive.
The price of "Kunlun Bu Laoquan" is 12.8 yuan per bottle, which is simply a robbery in this era. Even the wholesale price is as high as 8.8 yuan per bottle. It is said that the price in high-end catering places is 20 yuan per bottle. However, according to the feedback from cities such as Hong Kong, Macau, Beijing, Tianjin, Shanghai, Shenzhen, and Guangzhou, it seems to be better than the best I imagined.
Although the "Kunlun Bu Laoquan" cannot be compared with old mineral water such as Evian France in terms of price and influence, it still achieves excellent results through its special marketing positioning.
For example, "Kunlun Bu Laoquan" has become the designated mineral water for the Great Hall of the People and the Diaoyutai State Guesthouse, and has also become the designated drinking water for CCTV News Broadcasters and Oriental Song and Dance Troupe actors. It is unknown how much marketing expenses the Natural Hall has spent on obtaining this qualification.
After establishing this effect, Sha Zhengyang's advice to Gao Baishan was to never lower the price, even if it could not be sold, the quality would not be lost.
It can even be said that even if Nature Tang uses the profits of other products to make up for the "Kunlun Bu Laoquan", it must keep the brand from fading. With this brand, it means that Nature Tang is naturally taller than other companies, and this is the charm of this brand.
Products that are so gimmick-like are not produced for mass consumption, but for style and taste. As long as you understand this psychology, you can understand the mystery.
So when Pan Guangzhang mentioned that he was taking projects in Wuling area, he was already considering this issue. "Kunlun Bu Laoquan" which is known as the ultra-high-end in domestic mineral water can also gain a foothold in the domestic market, and the effect is even better than he imagined. This shows that the era of not seeking the best but seeking the most expensive is coming soon, and some niche and segmented new products will be increasingly favored.
Selenium-rich mineral water can also be made into a fine product of this subdividedness.
Selenium-rich mineral water is not a new concept, but indeed, selenium-rich mineral springs are relatively scarce in China, and most of them belong to semi-silicic acid mineral water and strontium-containing mineral water. Selenium-rich mineral water, especially high-quality selenium-rich mineral water, should be mainly concentrated in the Wuling area.
Now that Nature Hall has devoted its efforts to create the "Kunlun Bu Laoquan", a high-end brand that is absolutely free of pollution to the glaciers of thousands of years. It is not difficult to create a selenium-rich mineral water with health as a gimmick.
To be honest, the investment in building a high-end water production enterprise in Qinghai is probably no less than building a mineral water plant in the mountainous areas of Wuling, even if it is added to some infrastructure construction.
But for Wuling area, such a project will undoubtedly have a very conspicuous pulling effect.
Sha Zhengyang had considered this issue before.
He had considered investing in this project in Baoling because it was Wang Yunxiang's place to stay, but he felt that this seemed too explicit.
Because everyone knows that Dongfanghong Group is almost its own private land. If Natural Hall wants to invest in and build a factory in Baoling, everyone will think of themselves.
As the provincial governor, Wang Yunxiang must pay more attention to this aspect and may not appreciate it. At least the effect will not be good.
Now that Pan Guangzhang mentioned Laifeng, that would be the most appropriate one.
Judging from the selenium-rich mineral water resources in several counties in Wuling area, Laifeng is the best county, followed by Wanzhang, Baoling and Maba, and Jueshan and Luodu.
Pan Guangzhang is just the vice-provincial in charge of agriculture. He invested in building such a factory in Laifeng and would not attract much criticism. It would be a win-win cooperation.
"President Pan, do you think I am that kind of person?" Sha Zhengyang responded while thinking.
"Oh, so you're still confident. Then I've found a treasure. I'm still thinking about how to worry about attracting investment next year. If you can do it here, I'll feel at ease."
As a deputy provincial governor in charge of agriculture, Pan Guangzhang does not mean that he can't sleep well for this matter, but this is always a matter.
Although it won’t be a big deal if you can’t finish it, it’s hard to live a good life. Now you can solve such a problem inadvertently, why not do it?
Moreover, he had plans for this, so he just simply tied a thread and built a bridge.
"It's almost the same. I do have some plans. Gao Baishan and I have discussed it and we have also studied some ideas in this regard." Sha Zhengyang said lightly.
"You kid, you have never let go of the matter of Dongfanghong Group even after leaving. No wonder Dongfanghong Group has developed at an astonishing speed in recent years, but it has not been floating. Unlike some companies, they have a little bit of aura and start to not know that the sky is high and the earth is thick and they have to intervene in everything and dare to do anything. They have been increasing their bank loans again and again, and they are not afraid of dying from death..." Pan Guangzhang was not without emotion.
"The diversification of Dongfanghong Group also has some considerations, but a principle has been determined long ago. Dongfanghong Group's fundamentals have always focused on the food industry. Liquor is the fundamental foundation, and the water industry, tea beverages, and dairy industry are several pillars. Of course, there may be some actions in the food field in the future. As for others, it is just some considerations of Dongfanghong investment. That is what professionals do and cannot be used as the main direction of Dongfanghong Group."
Sha Zhengyang knew that Pan Guangzhang still wanted to listen to the content in this regard, so he didn't cover up anything.
"Well, it seems that several core layers of Dongfanghong Group have long reached a consensus on this point. The last time I went to Dongfanghong for investigation, Ning Yuechan, Mao Guorong, Ning Yuefeng, and Wang Shu were all there, and it was precisely Gao Baishan not there. It is said that he went to Heyuan, Guangdong to inspect the construction of the water source. In Ning Yuechan's words, he was preparing to face the head-on battle with Yibao, Jingtian and Lebai in the South China market."
Pan Guangzhang thought about it. He was in charge of agriculture, while Dongfanghong Group was mainly engaged in the food industry and had a lot of dealing with agriculture. For example, the tea base where the tea beverages for fun drinks are being built, and the self-built ranch of Tianyuan Dairy are all closely related to agriculture.
Chapter completed!