Bei Jing Shang Bao·2025-03-25 13:31Core Viewpoint - The bottled water market in China is experiencing intense competition, with major players like Nongfu Spring, Wahaha, and China Resources Beverage adjusting their strategies to capture market share after Nongfu Spring's re-entry into the pure water segment [4][5][9]. Group 1: Company Performance - Nongfu Spring reported a revenue of approximately 428.96 billion yuan for 2024, a year-on-year increase of 0.5%, and a net profit of about 121.23 billion yuan, up 0.4% [5]. - China Resources Beverage achieved a revenue of approximately 135.21 billion yuan, a slight increase of 0.05%, with a net profit of 16.37 billion yuan, reflecting a growth of 23.12% [5]. - Wahaha's overall performance returned to 700 billion yuan, marking an increase of nearly 200 billion yuan from the previous year, driven primarily by its bottled water and AD calcium milk businesses [4][5]. Group 2: Market Trends - The retail market for bottled drinking water in China grew by 2.5% year-on-year in 2024, with pure water accounting for 56.1% of the market [6]. - The natural mineral water market is expected to surpass 21.3 billion yuan in 2024, with a year-on-year growth rate of 17%, significantly outpacing the overall industry growth [6]. Group 3: Competitive Strategies - Nongfu Spring's re-entry into the pure water market has led to a price war, prompting competitors like Wahaha and China Resources Beverage to adjust their strategies [8][9]. - Nongfu Spring has launched a low-priced pure water product, with retail prices as low as 1 yuan per bottle, aiming to penetrate lower-tier markets [7][8]. - The competition has intensified, leading to increased product diversity and innovation, while also pushing smaller companies out of the market, thereby increasing industry concentration [8][11]. Group 4: Brand Positioning and Marketing - Nongfu Spring emphasizes its "high-quality natural water source" in its marketing, despite the lack of specific requirements for pure water [7]. - The company has upgraded its packaging to highlight its twelve major water sources, reinforcing its brand image of "natural and healthy" [9][10]. - China Resources Beverage is expanding its product range and has launched new brands to enhance its market presence following its listing on the Hong Kong Stock Exchange [10].