Mei Ri Jing Ji Xin Wen·2025-09-29 14:06Core Viewpoint - The ongoing "water war" in China's bottled water market has intensified, with major players like Nongfu Spring, Wahaha, and Yibao engaging in aggressive pricing strategies to capture market share, leading to significant shifts in market dynamics [1][5][9]. Group 1: Market Dynamics - Nongfu Spring launched its green bottle purified water at a retail price of 1 yuan per bottle, directly targeting competitors Yibao and Wahaha [1][3]. - Wahaha, under the leadership of Zong Fuli, has also reduced its bottled water prices to below 1 yuan, employing aggressive promotional strategies similar to those seen in other sectors [3][5]. - As of August 2025, Wahaha's market share increased from 14.22% to 17.7%, while Yibao's share dropped from 25.11% to 20.34%, indicating a significant shift in competitive positioning [5][9]. Group 2: Pricing Strategies and Subsidies - Both Yibao and Nongfu Spring have engaged in substantial subsidy programs to lower retail prices, with Yibao providing 2 yuan per box in subsidies earlier in the year, which later decreased [4][8]. - The practice of "performance-based subsidies" has become common, where distributors face penalties for not meeting sales targets, leading to aggressive pricing tactics [5][6]. - Distributors have reported instances of "price inversion," where they sell products below cost to maintain market presence, reflecting the intense competitive pressure [6][7]. Group 3: Financial Performance - Yibao's financial performance has suffered, with a reported 23.1% decline in revenue from bottled water in the first half of 2025, marking a significant downturn for a previously stable segment [9][10]. - The decline in Yibao's market share and revenue has been attributed to increased competition and the aggressive pricing strategies of Nongfu Spring's green bottle products [8][9]. - The overall market for bottled water has seen a shift, with the price war leading to reduced profitability for many distributors, mirroring challenges faced in other competitive sectors [6][7].