Core Viewpoint - The founder of Fujian Haoyiteng, Chen Yang, has successfully navigated the competitive bottled water industry by focusing on health-conscious drinking and adopting a differentiated business model of "large bottled water delivery + disposable empty bottles" to avoid direct competition with major national and local brands [2][5]. Group 1: Business Model Transformation - Chen Yang's entrepreneurial opportunity stemmed from a deep understanding of the connection between water and health, influenced by a report on water pollution and cancer during his high school years [5]. - In 2018, the company transitioned from a fresh milk delivery business to "natural spring water delivery," believing in the feasibility of this business model [5]. - The strategic decision to focus solely on large bottled water (12 liters and above) and not recycle empty bottles allowed Haoyiteng to avoid direct confrontation with traditional water companies from its inception [5][6]. Group 2: Competitive Landscape - The first layer of competition involves national water companies that rely on a retail model through distributors, while Haoyiteng employs a "self-operated delivery team + specialized delivery tools" model, making it difficult for giants to penetrate the household demand market [7]. - The second layer of competition highlights the limitations of capital and instant retail platforms, which can only handle products under 5 liters, while Haoyiteng focuses on the essential household product of 12 liters and above [8]. - The third layer of competition addresses the challenges faced by local water companies that use recyclable bottles, whereas Haoyiteng uses disposable PET bottles to eliminate cross-contamination risks and target family customers [9]. Group 3: Initial Challenges and Growth - In its early stages, Haoyiteng faced significant challenges, including a costly marketing strategy that involved giving away 200,000 to 300,000 bottles of water for free, resulting in a near-total loss of the initial investment of 10 million yuan [10][11]. - Despite these setbacks, the company maintained confidence in its business model, recognizing that the core competitiveness in the bottled water industry lies in the "operational system" rather than short-term marketing [11]. Group 4: Cost Structure and Operational Efficiency - Haoyiteng's use of disposable bottles, which cost over 5 yuan each compared to the 1 yuan cost of traditional recyclable bottles, is balanced by establishing factories near water sources to ensure quality and reduce transportation costs [13]. - The company offers a competitive price of 15 yuan for its large bottled water while maintaining reasonable profit margins, outperforming similar products from competitors like Nongfu Spring [13]. - By building its own delivery team, Haoyiteng has created a competitive moat, promising same-day delivery for orders placed before 4 PM and maintaining service even during adverse weather conditions [14]. Group 5: Embracing AI for Future Growth - Chen Yang's engagement with the Chaos AI Innovation Institute in 2024 has led to considerations for integrating AI technology into the delivery process, including route optimization, household water usage prediction, and smart customer service systems [15]. - This forward-thinking approach positions Haoyiteng to seize opportunities in an industry that has yet to fully embrace digital transformation, with AI seen as a key to redefining industry standards [15].