Core Insights - In the context of slowing growth in the dairy industry, leading companies are seeking new growth avenues, with Yili focusing on expanding its water business [2] - Yili has appointed Liu Yong, former Vice President of Cui Lin Agricultural Group and Chairman of Evergrande Ice Spring Group, as the Sales General Manager for its water beverage division [2] - Liu Yong brings nearly 10 years of experience in the beverage industry, having previously achieved significant revenue growth at Evergrande Ice Spring [2][3] Company Strategy - Yili's water beverage strategy is not new, dating back to 1996, but has been revitalized with a clearer focus on leveraging its strengths rather than merely following market trends [3] - The company is introducing differentiated products, such as the "tea-water separation fresh-keeping cap" technology for its iced tea and baby water products linked to its milk powder brand [3] Market Challenges - The bottled water market is dominated by three major players—Nongfu Spring, C'estbon, and Master Kong—who hold nearly 60% of the market share, making it challenging for new brands to penetrate [3] - Consumer loyalty to water sources and brand recognition poses a significant hurdle for Yili, necessitating substantial investment in market education [3] Future Outlook - The success of Yili's water beverage business as a new pillar will depend on its ability to continuously launch differentiated products and create synergies in channels and branding [3] - The management has high expectations for this segment, indicating potential for innovation and increased competition in the industry [3]